Today, I want to share a very important topic, which is also a relatively basic topic. It can be said that it is essential knowledge for newcomers and novices in the crypto world.
In 2017 and 2018, many people were investing in projects, some losing money and some making big profits. By 2019, there were many projects as well, but as investors, they were more cautious and prudent in their project choices, as many had paid tuition fees and would not easily invest blindly. Moreover, many people, having been hurt, were afraid to engage in investments again.
In such a market context, our knowledge and expertise become very important. When you talk to others about a project, you say your project is very profitable, and in turn, they claim their project is even more profitable. Which one is more profitable? Which one is more sustainable? No one can be certain.
So when promoting investments, you encounter a very interesting phenomenon: while you are discussing a project, they are also talking about their project, both sides are competing, and in the end, neither accepts.
At this point, we can change our thinking. If you share a project with someone, they may refuse you, but from another angle, if you are sharing knowledge, experience, or some concepts with them, they will not refuse you. I believe no one would refuse knowledge, nor would anyone reject self-improvement in understanding, which is something we must grasp and be equipped with.
Returning to my sharing topic, the development and current situation of digital currency can be simply divided into three sections, progressing step by step.
1. What are the characteristics and trends of the blockchain era?
As one of the new generation of innovative technologies, blockchain is now receiving a lot of attention. Originating from Bitcoin, blockchain technology is now penetrating numerous industries and fields, including finance, retail, the Internet of Things, and smart manufacturing. Although many applications are currently exploratory and experimental and their application scope is somewhat limited, these applications are already sufficient to show us the transformative potential inherent in blockchain itself.
Blockchain is considered one of the core technologies with the potential to trigger a new wave of disruptive changes, following the steam engine, electricity, and the internet. It is expected to change the development prospects of many industries in the future, leading to a new technological revolution and industrial transformation, thereby altering our lives and work.
Higher performance, more secure
The core value of blockchain lies in providing a new computing paradigm and collaborative model for establishing trust at a low cost in an open environment. With its unique trust-building mechanism, it achieves penetrative regulation and tiered trust transmission.
Blockchain technology originates from encrypted digital currencies. It is a combination of a series of technologies including distributed ledgers, consensus mechanisms, smart contracts, asymmetric encryption, and P2P networks. Marked by the advent of Bitcoin, blockchain technology has been around for over 10 years, having generally gone through three stages, with each advancement moving towards higher efficiency, greater security, and increased practicality.
Most people who speculated in stocks in the early 90s made a lot of money.
Starting in 2000, those who speculated on real estate basically made a lot of money, with amounts ranging from hundreds of thousands to tens of millions or even over a hundred million.
Going back a bit further, five years ago, in 2014 and 2015, micro-businesses that were looked down upon made many millionaires, and even billionaires.
These are the opportunities brought to us by the trends of the times, creating a wealth myth that yields great results with minimal effort. Now that the blockchain era has arrived, it also contains enormous business opportunities, so many people want to get a piece of the pie from this trend, leveraging their small capital for large returns. This idea is not wrong, and such opportunities do exist.
After everyone has a preliminary understanding of the meaning and concept of blockchain, we will proceed to the second part.
The term that most people are most interested in and most familiar with is Bitcoin.
2. What is the history of Bitcoin's development?
The idea of owning digital currency has been around for a long time. Even before the emergence of cryptocurrencies, many people were continuously trying to create cryptocurrencies, most of whom primarily faced the problem of double spending. They had to ensure that digital assets could only be used once to prevent duplication and forgery of digital assets.
In the years leading up to the emergence of cryptocurrencies, computer engineer Wei Dai already proposed this concept. In 1998, he published a paper discussing 'B-money', proposing the idea of sending digital currency through a set of untraceable digital pseudonyms. In the same year, blockchain pioneer Nick Szabo attempted to propose the concept of Bit Gold, which also sought to create a decentralized digital currency.
In November 2008, Satoshi Nakamoto published a white paper titled 'Bitcoin: A Peer-to-Peer Electronic Cash System', which introduced the powerful capabilities of the Bitcoin blockchain network. This day is a significant milestone in the history of Bitcoin's development and paved the way for the subsequent rise of blockchain.
Four months later, Satoshi Nakamoto (whose true identity remains a mystery to this day) mined the first block of the Bitcoin network, paving the way for the subsequent development of blockchain technology. The first mined block is also known as the Genesis Block.
The first recorded use of Bitcoin to purchase goods was when Laszlo Hanyecz bought two pizzas for 10,000 BTC. This day is still known as Bitcoin Pizza Day. To commemorate this important day, Ledger also launched a limited edition Ledger Nano S.
So at that time, a mining craze emerged, with many people hoarding mining machines to mine Bitcoin.
With the development of the market, Bitcoin became known to more people, but Bitcoin's price was not completely on an upward trajectory. After a big surge in 2013, there were many fluctuations downwards in 2015 and 2016, dropping to 500 or 400 USD. However, by 2017, the world went crazy for it, and Bitcoin reached its peak of 20,000 USD each, with the Chinese Yuan hitting 140,000 each in December 2017.
In 2017, most people also learned what Bitcoin was: a virtual currency that could be traded, and everyone had some basic understanding.
With the increase in wealth effects and the spread of wealth myth stories, many people participated in Bitcoin investments, leading to many Bitcoin-related projects, such as ICO tokens, trust companies for some cryptocurrencies, and numerous blockchain games, all of which became familiar and accepted by most people in 2017.
3. How should ordinary people make money in the crypto space?
First, honestly hoard coins, hold the spot for 3-10 years. Hording the right assets leads to wealth. What is the best asset in the crypto world? Everyone in the crypto community knows, no need to choose. This seemingly simplest path is actually the least traveled, hence the least competitive. There is no such thing as excessive competition or internal strife; I also completely disregard price fluctuations because it is too against human nature. I personally walk this path and find it suits me perfectly, perhaps due to my personality. I have also made money by taking this path.
Second, use cryptocurrency as the basis for your assets. Use existing coins to participate in quality activities, such as Binance's IEO. Staking activities of Bored Apes, liquidity mining, etc., can all earn money, but this small capital becomes meaningless. It is suitable for larger funds.
Third, engage in trading. Trading is the most challenging but also the most desired by ordinary people, often perceived as the simplest. For example, opening contracts is as simple as clicking the mouse, and a certain master tells you which point to enter. In reality, most people cannot make a profit; they end up being the fuel.
Fourth, participate in the speculation of hot concepts, such as the ETH Shanghai upgrade, which will rise, so you speculate on it, or if APE has staking activities, predicting that reduced liquidity will drive prices up, then participate. Similarly, if LTC has a halving event, then participate in that as well. These are all speculative actions based on events. Personally, I do not recommend engaging in contracts, only in spot trading, and also managing positions and stop-loss levels well.
Fifth, various activities, such as NFT new launches, whitelists, first-level market activities to claim airdrops, etc. These all require some technical skills. Ordinary people can learn through study.
The market never lacks opportunities; the question is whether you can seize them. By following experienced and capable people, we can earn more! Keep up the pace!
Daily focus: OM SUI SOL FUN BTC
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