common people thinking

In the eyes of most people, currency standards mostly refer to "legal currency", such as Hong Kong dollars, Taiwan dollars, US dollars, etc. These legal currencies are issued unlimitedly by the state. Everyone has their own currency standard, mainly because they care about whether the currency is useful.

Taking the editor as an example, I used to think that Hong Kong dollars and US dollars were useful, so I would think in terms of these two legal currencies. I would use Hong Kong dollars to deposit money to buy cryptocurrencies. When the currency market fell, it was difficult not to use Hong Kong dollars to measure the value of the cryptocurrency. I believe many readers are like this.

Most people think that thinking in terms of fiat currencies is not only because fiat currencies still play a big role in today's society, but also because they think cryptocurrencies are useless.

Currency people’s thinking

Coin standard, as a term in the currency circle, usually refers to Bitcoin standard. Now it can also be expanded to the Ethereum standard, that is, using Bitcoin or Ethereum as the anchor of assets, and achieving the continued growth of the currency standard through various transaction methods.

Let me take the editor as an example. Two years ago, I felt heartbroken when I saw the currency market fall. Now the more it falls, the more I buy. The reason is that my thinking is long-term rather than short-term. ETH fell from $1500 to $1200. I did lose 20% from the cost perspective of Hong Kong dollars, but in fact I won’t sell now. Anyway, I am looking at the next bull market, so how it falls now is none of my business. ?

If I "know" that cryptocurrencies are a sure way to make money (not investment advice, just the editor being overly optimistic Earn, because my currency standard increases, my potential income in the future may be more.

logical thinking

When a friend of the editor entered the currency circle last year, he directly bought BTC with a high price of 200,000 Hong Kong dollars. Later, he was heartbroken when the price fell. Then every time he wanted to invest money, he would first calculate the value of the currency. But now he will say

"1 BTC is 1 BTC", gradually forgetting the thinking mode of legal currency.

The advantage this brings to him is that he can more objectively see the value of the project itself. To put it simply, the NFT bought last year was 10 ETH and sold this year for 20 ETH. For those who are based on legal currency, of course they did not make money because the currency price just happened to be even; however, for those who think based on currency, this is a successful doubling. Invest because the asset will be worth more than fiat in the future.

To be more straightforward, if you think about exchanging fiat currency for cryptocurrency, you must be losing money or making money, because you used that money as a cost in the first place, which is normal. Then if you focus on the value of the assets you hold and then compare it with the original standard value, you will know that the legal currency will depreciate!

Look further ahead

Think about it in three or even ten years. Can you honestly think about whether the value of fiat currency in those years will be more or less than it is now? I believe you already have the answer in your mind after reading this page. The next step we need to think about is which type of asset has a relatively high upside potential?

In the past 10 years, the total amount of new currencies in the world's major economies has exceeded the total amount in the history of human currency. The total amount of Bitcoin has an upper limit, while Ethereum has no upper limit in theory and has a burning mechanism to form actual deflation. The total market value of cryptocurrency is currently only over US$800 billion, which is still far from the total market value of gold of approximately US$10 trillion and the total market value of the US stock market of approximately US$40 trillion.

You can read more news. Even big investors are beginning to invest in the blockchain sector, and large companies are starting to develop blockchain technology projects. Will there be less cryptocurrencies in the assets that will explode in the future? The more it falls, the more fearful it becomes and then it reduces its holdings. Finally, when the bull market comes, who do you think will be the big winner? Of course they are people with currency-based thinking.

Summarize

What is the worst consequence of starting to think in Bitcoin terms today? Bitcoin (possibly along with other cryptocurrencies in one fell swoop) is worth zero against fiat and you just worked for three years in vain. Why three years? Because I just said it would take at least three years to see it. But is this possible? You can first think about the principles of blockchain. I don’t think it’s worth spending time talking about.

Is it terrible to waste three years? Think about it, if you had never been exposed to cryptocurrency and continued to be an ordinary wage earner, what would you be like in three years? You know what's going on. Spend at least three years in exchange for the biggest opportunity to change your life. This choice is always in your own hands.

The editor knows that some people may say something about losing your wealth, but no one calls you All In? Investment has always been based on financial status and risk tolerance. If you are willing to have faith in cryptocurrency and use your time and effort to try it, you should make a lot of money. On the other hand, it is normal for you to lose money. Remember, no one is responsible for your money but you.

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