I saw a piece of data two days ago: the number of Bitcoin profitable addresses reached 39.1 million, a record high, and the number of loss-making addresses was 9 million.
A lot of people are excited about this, but I am a little worried.
The fact that so many addresses are profitable means that most of them are making money, while a small number are losing money. This should be a feature of a bull market, but it appears in the current bear market.
In these rounds of bull and bear markets, countless people know the significance of hoarding coins, which makes this car look very heavy.
If the market really needs to be pulled up, it may not be that easy. At least the market makers will not start it as easily as in the previous bull markets.
After all, this car is too heavy.
Moreover, these profitable addresses are unlikely to be sold. Most of them are long-term holders who will wait until the bull market to sell.
This makes it very difficult to start a bull market, at least it will be difficult to start a big market before the global economy heats up.
2，
You can look through my previous articles, which clearly told you that the market needs a break and it basically did not exceed expectations.
The market just shook slightly and there is no possibility of directly triggering a bull market.
Before the ETF is approved, the market will maintain the current state most of the time, with ups and downs, and most of the time it will be sideways, which will continue to test everyone's mentality.
In the short term, there may be another big correction, which will scare countless investors. There may also be a surge to continue to maintain the investors' enthusiasm for speculation.
Referring to historical market trends, the closer it is to a bull market, the more likely it is that the market will not stay in one position like before, but will occasionally go crazy and cause trouble.
Everyone should be fully prepared for this, continue to invest in an orderly manner at their own pace, and increase investment when there is a big drop.
After all, with the current liquidity, the possibility of a sharp drop is very small.
3，
I saw a question: "If the US dollar depreciates sharply, will Bitcoin take over?"
Regarding the issue of Bitcoin becoming a currency, it is best for everyone to give up this unrealistic idea. Bitcoin does not have the slightest monetary attribute.
Even if the U.S. dollar depreciates significantly, it is still legal tender. No matter how much Bitcoin rises, it is always just an investment product.
The two cannot be compared at all.
Many people in the cryptocurrency world regard turning Bitcoin into a currency as their lifelong pursuit. But if the value of Bitcoin is not constant, how can it become a currency?
Today your assets can buy a car, but tomorrow they may only buy a hamburger. The wealth of the entire society disappears out of thin air. How can this be possible? If Bitcoin becomes legal tender, then there will probably be an economic crisis every day.
If your wealth is measured in Bitcoin, and you have 3 million in a bull market, but only tens of thousands in a bear market, what would you do? Can your little heart bear it?
4，
Bitcoin is seen as a safe-haven asset in the global economy, and when the global economy is unstable, the US dollar tends to become a safe haven.
This round of interest rate hikes has caused more dollars to flow back to the United States, and the United States has transferred its economic risks.
If the US dollar depreciates one day, assets may flow into Bitcoin, gold, RMB, Swiss franc, etc.
All we can say is that in this case, Bitcoin may bring about a certain price increase, but there will be no other impact.
In terms of liquidity, the liquidity of Bitcoin is almost negligible compared to the US dollar. Unless there are more than 3 billion people in the world holding or trading Bitcoin, Bitcoin may be able to compete with the US dollar.
If the world is in turmoil and the US dollar hegemony is gone, investors may choose Bitcoin as a way to store wealth.
The key is that Bitcoin currently has a very big pain point, which is that the transaction speed and transaction fees cannot support the needs of economic development at all.
Not now, and not in the foreseeable future, even if encryption technology advances by leaps and bounds.
5，
The contemporary world is a centralized society and has been a centralized society since the birth of mankind.
Bitcoin is not controlled by any country, and it has the resistance to centralization in its genes. It is okay as an investment product, but if it really becomes the legal currency of mankind, especially this kind of borderless currency, it will probably be buried in the eighteenth level of hell.
The reason why Bitcoin is becoming more and more powerful now is not because of its value, but because some well-connected people have gained wealth through Bitcoin and have promoted the legalization of cryptocurrencies.
As a person in the cryptocurrency circle, I should thank them, but as a staunch believer in decentralization, I am worried about the future.
However, it is a bit too much for us little Karami to worry about these issues. The key is to look at our exchange accounts honestly and see whether we can make money.
Come on, B-circle people
