Bitcoin is still a game for a few people

14 Feb 2023

In 2021 JK Rowling, the author of "Harry Potter", posted a question on the social networking site "I don't understand bitcoin, can someone explain it to me"? After that, the pan was frying inside and outside. Sun Yuchen who never let go of hot spots, V god who rarely touched hot spots, and Elon Musk who spoke occasionally all rushed to speak, explaining to Rowling what bitcoin is.

These explanations are very straightforward, but the effect is still not good. Then JK Rowling said in her reply that she still couldn't understand. At first, I didn't care about this matter, because the understanding and perception of Bitcoin has always been very different in the investment community. For example, Buffett and Charlie Munger, clearly stated that they hate Bitcoin, so I'm used to this kind of indifference or incomprehension of Bitcoin. But this incident detonated the entire circle at once, but it reminded me of another aspect: that is the popularity and spread of Bitcoin still has a long way to go.

Many events, such as bitcoin halving, are considered to be major events by people who often pay attention to digital currency. However, in a larger group of people, they may not even know what bitcoin is.

I thought of another investment product: stocks. The audience of stocks is probably the most extensive of all investment products. However, these investors who have extensive exposure to stocks, do they really understand a series of professional terms behind stocks? Such as price-earnings ratio, net worth, price-to-book ratio. Why do the public not understand these terms but still have such a high level of enthusiasm to participate in stock investment? Is it because the stock makes many people make money? I do n’t think so.

The old saying in the stock market is good: 10 shareholders, 7 losses, 2 draws, 1 gain. So what makes the stock market attract so many people? I think the most fundamental reason is one: the threshold for participating in the transaction is very low. This low threshold not only refers to the low capital threshold, but also refers to the low threshold for investors to operate. On the other hand, in the case of digital currency transactions, domestic investors use the “scientific Internet access” of trading proceeds, and carefully choose over-the-counter transactions for USDT. If they exchange USDT, they must enter the “currency exchange” to buy and sell various digital currencies. Whether you buy or sell coins, you still have to worry about the risk of being blocked by black money and the account. This threshold has been blocked by a large number of people. If it is difficult for the public to access digital currency, how can they have the enthusiasm to understand digital currency and then invest in digital currency? However, from another aspect, so many people have not been exposed to digital currency at all, which further shows that this is a large gold mine that has not yet been developed. Once one day, the public can buy and sell digital currency as easily as buying and selling stocks. I think this market will be so big that we can’t imagine today.

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