Cryptocurrencies: Still the Biggest Investment Opportunity of the Future

One of our readers has this message:

Hello, Brother Dao. I have been paying attention to your program and official account, thank you for your popularization of blockchain. I want to ask a big question, that is, each generation has its own investment targets. Just like people before liberation invested in land, shops, gold, and silver. People after liberation invested in food, red treasure books, and commemorative medals. After the reform, people invested in industries, real estate, stocks, stamps, cultural games, etc., while the post-80s and post-90s generation began to invest in funds, digital currency, and even cars, figures, cards, blind boxes, and sports shoes. And what I want to ask is, after two more bitcoin halving cycles, similar to urban housing, when ordinary people can’t afford even 0.1 bitcoin with 10 years of salary savings, at that time, the new generation Young people, they have higher knowledge and technology, and a stronger ability to realize their dreams, so what kind of incredible things will they use to harvest our post-80.90. What about a bunch of stubborn rentier old guys? A virtual world like The Matrix? Sleeping cabin neural link thought network? Or expensive medical treatment and drugs that prolong life? At that time, most of the surviving blockchain asset tokens were beyond the reach of ordinary people. , What is the meaning of blockchain? (Real estate was the driving force of the economy for 40 years after the reform, but now it is a hindrance to the growth of the new population and the development of industries).

When I saw this message, I had a lot of thoughts.

This is a very interesting question, and one that deserves our careful consideration.

Indeed, every generation has investment opportunities for every generation. But in my opinion, no matter what generation they are, their investment opportunities cannot be compared with the digital currencies experienced by our generation, especially Bitcoin.

Whether it is gold in shops that can be invested 49 years ago, the Red Book commemorative medal 49 years later, or the industrial real estate after the reform and opening up, all these investment products have only individual advantages and disadvantages compared with Bitcoin.

The earliest trading price of Bitcoin was 1,500 coins for 1 dollar, and now it is 50,000 dollars per coin. Its initial price is affordable for everyone without any financial burden, and the subsequent increase has exceeded tens of millions of times.

The price of the red book, commemorative medals, stamps, etc. mentioned above was indeed very low at the beginning, and no one would be financially burdened to buy them, but their subsequent increase was far less than tens of millions of times that of Bitcoin. Therefore, compared with Bitcoin, this type of asset is much worse in terms of growth rate. And this kind of assets are too small, so it is very troublesome to realize them.

The follow-up growth rate of industry and real estate is good, but to buy in the initial stage, investors also need a certain cost and have financial burdens. No matter how cheap a house was in Beijing, Shanghai, Guangzhou and Shenzhen 30 years ago, it cost 1,000 yuan per square meter, but how much did people earn at that time? Therefore, judging from the salary level at that time, it was necessary to grit your teeth to buy a house, and it was definitely not affordable for the general public. Therefore, the initial price of such assets is much lower than that of Bitcoin.

Wenwan is relatively close to the characteristics of Bitcoin. On the one hand, the subsequent increase is astonishing, and on the other hand, the initial price may not be high. However, the problem with Wenwan is that it is difficult to judge whether it is true or false, and it is quite difficult to realize it, especially for millions or even more. Expensive Wenwan can almost only be realized at auctions. This kind of liquidity is much worse than that of Bitcoin.

So in general, I think Bitcoin is almost the most amazing asset in human history in the past 5,000 years. It has almost all the advantages of a financial asset at the same time: good liquidity, no burden on the initial price, and amazing subsequent growth. Its strengths exceed any financial asset we have seen.

The birth of such assets must have occurred at a major turning point in human society. In my opinion, this turning point is the inflection point when human society fully enters digitalization.In the face of this kind of opportunity that is rare in thousands of years or even ten thousand years, most people don't realize it, so most people can't seize this opportunity.

There are still opportunities in the field of digital currency in the future, but will there be a variety like Bitcoin that has an extremely low initial price, an astonishing subsequent increase, and everyone has the opportunity to buy? I think the possibility is extremely low. There will still be hundreds of times coins and thousand times coins, but I am afraid that not many people will have the opportunity to buy them.

Let's take YFI, the biggest star project of DeFi in this round, as an example. Its increase is indeed astonishing, and the initial cost is almost zero, but the time window to obtain it at zero cost is quite short. Bitcoin has been on the line from 2009 to at least 2011, and its price has been surprisingly low in the past two years. At any point in these two years, anyone can afford it without any financial burden. This gave the public a full two-year time window.

So Bitcoin has passed as a miracle, and I am afraid that our generation or even the next few generations may not see such a miracle again.

Of course, there will be new subversive fields in the future of technology, but I think those fields are only related to our lives. It is relatively difficult for ordinary people to benefit from investment in those fields, and the returns are very mediocre.

The current hot biotechnology, new energy technology, artificial intelligence, etc. are all hot technologies in the future, but which one is related to us ordinary people? How can we invest in these fields with tens of thousands of dollars? I am afraid that the only way to invest is to buy the stocks of some potential companies, and which potential stocks can have such an increase as Bitcoin? Even if it is not compared with Bitcoin, the increase in stocks is insignificant compared with the increase of more than ten or dozens of times in the currency circle.

So I think the biggest investment opportunity for our generation or even the next generation will still be in digital currency.

As for being harvested in terms of investment, in fact, I think this is not a harvest, but a cost that latecomers must pay because of cognitive differences or poor information. This is very normal. Everyone has opportunities for everyone, and there are costs that everyone must pay.

How to avoid this kind of "harvesting"? Study hard, improve your cognition, lower your prejudices, open your mind, and always look at any new things that have a huge conflict with our inherent thinking with humble eyes.