Friday, June 7, 2024
Bitcoin has been fluctuating, breaking through 70,000 US dollars for a while and falling below 70,000 US dollars again. In the short term, the price cannot be predicted, but in the long term, it will definitely spiral upward or even grow exponentially.
The interest rate hikes or cuts in various countries are related to Bitcoin. Canada recently cut its interest rates, and Bitcoin quickly broke through 70,000 US dollars.
For those who hoard stocks, paying attention to the market is just to get the cheapest chips possible, because the price keeps getting higher and higher, and the cost of hoarding stocks is also getting higher and higher.
From the perspective of currency standard, the higher the price, the smaller the amount of hoarding will be. At this time, it is time to realize the need to improve the ability to earn legal currency off-market.
I recently asked my mother (born in the 1970s) if she had ever heard of Bitcoin, and she said no. I told her that this thing could appreciate in value, but she was a little skeptical.
I also said that in 2018 I spent one thousand yuan to buy 0.01 pancakes. At that time, the unit price was more than 70,000 yuan, and now the unit price is more than 500,000 yuan.
If you hold on to it, the value will increase fivefold based on the current legal currency standard. Now 0.01 bitcoin can be exchanged for 5,000 yuan.
If you put cash in the bank and deposit it for three to five years, the interest rate used to be 3%, but now it has dropped to around 2%.
If you deposited 1,000 yuan in 2018 and held it at an interest rate of 3% until now in 2024, you can earn about 200 yuan in interest over 6 years, or 1,200 yuan.
However, there was actually inflation during those six years, as reflected in the continued rise in prices, so the money was actually depreciating if it was kept on deposit, and keeping it with interest simply slowed down the rate of depreciation.
But after six years of settling down, Bitcoin has actually fought against inflation and appreciated over time.
Fortunately, it is still in the early stages. Although the price is "very high" compared to fiat currency, looking into the future, if a pie is really worth 100 million US dollars in 2035 as Fidelity predicts, the current price will be a bargain.
Just like six years ago, it was unimaginable that a pancake could be sold for five hundred thousand, which is equivalent to the price of a house in a small county. If time could go back to six years ago, I would definitely buy more pancakes and stockpile them.
I asked my mother how much money she had to allow her to have some free time, and whether one million was enough. She said it was enough, and 500,000 would be fine, but 200,000 was probably not enough. She was thinking of returning to her hometown to play cards and live a leisurely life.
I boasted to her again, if I buy 10,000 yuan of pancakes now, if she is not in a hurry, she can wait five to ten years and see. If she is in a hurry, I can give it to her by the middle or end of next year. If there is a loss, it will be mine, and if there is a profit, we will each split it in half.
She thought about it for a few days, and then gave me 10,000 yuan to test the waters, saying it could be kept for five years. I boasted again that maybe this 10,000 yuan pie could provide for her old age, hahahaha.
Before you spend $100,000, buy as many cookies as you can.
What if after this year, the portfolio is passively fully invested?
What if the $100,000 is gone forever?
Who knows what the future holds?
Only time will give you and me the answer.
