If you can’t accept this, you may miss out on this wave of crypto dividends in the future and pay a heavy price.
The transition from "paper wealth" to the awakening of the illusion of wealth is a transformation that every investor must go through.
Why is this happening?
Many people see the numbers in their accounts soaring and think that it is "their own money", but when the market changes suddenly, the paper profits may disappear in a short time. The lessons we have learned from history are the key to understanding this:
1. A lesson from history: the textbook collapse of the Internet bubble
In the dot-com bubble of the late 1990s, investors chased after the illusion of “future potential” rather than real value. The rise in stock prices made countless people think they had “millions of dollars”, but they were wiped out in an instant after the bubble burst. A few companies survived the winter, but most disappeared without a trace, leaving only regret.
2. From tulips to the subprime mortgage crisis: the illusion of wealth repeats itself
Tulip mania: In the 17th century in the Netherlands, tulips were more expensive than gold, but after the market crashed, everyone lost all their money.
South Sea Bubble: 18th century British investors thought they were sitting on huge profits, but were destroyed by a scam.
2008 subprime mortgage crisis: Rising real estate prices made global investors “rich on paper,” but the collapse revealed the truth about the debt.
These stories remind us that when asset prices rise, people always think they have acquired wealth, but ignore that it is just a mirror image of the "market price". Once the illusion is shattered, it will be a disaster.
3. Human nature misconception: Why do we always overestimate ourselves?
Wealth effect: rising numbers are addictive, and dopamine makes us want to "earn more."
Herd mentality: In a market boom, people blindly believe in the recommendations of others and believe in the "next big opportunity."
Loss aversion: Paper profits make people reluctant to leave the market until the market turns against them, making it too late for regret.
Value misunderstanding: price ≠ value, market fluctuations cannot truly reflect the actual value of assets.
Moment of awakening: How to avoid becoming a victim of a bubble?
Unrealized profits are just numbers, and locking them in is the only way to fight against illusions.
