Today, Brother Fool discussed the losses of imitation products and changes in the market in the group.
The calmness and reflection shown during the downturn indicate evolution.
Although financial capital has lost, mental capital has qualitatively improved.
Who knows if it’s a blessing in disguise?
We can still invest until we are 90 years old; a brief loss of financial capital may not be bad if it leads to an increase in mental capital.
The successful experiences of history show that hoarding imitation products is a minor path.
Combining judgments on structural changes in the market with the order of liquidity overflow is an upgrade in thinking.
From being attached to the large cycle of imitation products to specific narrative short cycles,
it also reflects a change in thinking.
In fact, these principles have always existed; they simply manifest differently in various market periods.
Objective laws have always been there; they have never changed.
The law of large numbers constrains most of those who incur significant losses,
leading them to despair, pain, and rational disability.
They are ultimately eliminated by the market, with unknown causes of death.
Calming down, reflecting, reviewing, and verifying correct methodologies seems to be a rebellion against one's own fate.
Only individuals like this will succeed and may achieve greatness.
Everyone's life is a journey of resetting to zero, and fate seems unavoidable.
Now, those who can shift their thinking are already stronger than 99% of people; they possess high insight.
Massive losses can suppress rationality, as textbooks say.
If you really "value invest," then there are almost no investment targets in the cryptocurrency world besides BTC.
From a higher dimension,
if we consider a bull market similar to that of 2021, randomly choosing a leading imitation product in a sector has an over 80% probability of soaring.
The market indeed experiences rotation and surges in various sectors.
Therefore, the probability of redemption during a low-price increase is high; one can hold onto it.
In this bull market, almost all sectors can find leading stocks that have dropped 95%.
The market is riddled with wounds, and there is little strength to exploit.
Thus, a holding strategy will likely lead to a total loss of capital.
The deeper reason is that imitation products lack liquidity for entry.
On one hand, the primary market has issued tokens in quantities of 100,000 times, scraping away the gambling funds attached to imitation products like a scraper. The volatility in the primary market is higher.
On the other hand, the new funds in this round, like MicroStrategy, are very calm and do not invest in imitation products. People like Sam and Down from the last round are no longer seen.
On the other hand, the new funds in this round, like MicroStrategy, are very calm and do not invest in imitation products. People like Sam and Down from the last round are no longer seen.
Thus, the market structure has undergone a dramatic change.
It has evolved from the large cycle of BTC plus the attached imitation product cycle to the large cycle of BTC plus specific narrative cycles.
From a higher dimension, the self holding onto assets and the self trading become clearer.
