|
|
Inflation's shadow looms over every major country in the world. Whether it's the United States, Europe, or other developed regions, the vigilance towards accelerating inflation has surpassed the desire for economic stimulus. Inflation rates of 8-10% are enough to put many households in dire straits. However, with inadequate supply, there seems to be no other option.
Facing central banks worldwide is likely the only path of raising interest rates, even though everyone knows it could lead to a recession. However, raising interest rates is necessary to bring down various asset prices and curb inflation.
Especially in the case of the United States, they have the most sensitive perception in this regard. The U.S. takes the lead in raising interest rates, and Europe, along with other parts of the world, has no choice but to follow suit. It's akin to the final round of a poker game, where the previous player has already raised, and even if you don't have a strong hand, you must call.
In this inevitable scenario of interest rate hikes, all risk assets, to put it simply, are "hard-pressed." Unfortunately, as of now, Bitcoin and Ethereum are precisely categorized as "risk assets."
This curve, which most of us have probably seen, implies the evolutionary pattern of things, especially in technology. Initially, people tend to promote bubbles because they have never been proven wrong. However, once development accelerates too quickly, inevitable bursts occur, and another group of people who didn't promote the bubble will mock and criticize. Then, it's the slow process of building and developing over time.
It resembles a super cycle but isn't entirely the same. The Bitcoin bull market in 2013 enlightened the public to blockchain technology, leading to Ethereum in 2015. The bull market in 2017 highlighted the strength of smart contracts, resulting in DeFi in 2019. The bull market in 2021 made us realize the incredible potential of DeFi and NFTs, setting the stage for new seeds in the future.
However, the germination of these new seeds requires more time. So, I remain optimistic about the long-term future of Bitcoin and Ethereum. Yet, in the short to medium term, they are still intertwined with traditional markets and the global economy, facing a challenging period.
The most expensive lesson is to heed the saying: "Learn from history to understand the rise and fall." If we want to brew the next bull market, we must understand what we can learn from this collapse, which is the theme of this article.
I believe there's only one thing we must learn: "Don't treat a moment as permanent."
Speaking of another misconception, if you buy an animal as your avatar, you not only get an avatar but soon you'll get a dog, followed by a mutated animal. Then, you'll receive tokens that these animals will use, and even get two pieces of land for the future residence of these animals...
What's more amazing is that each of them can be sold. With a snap of your fingers, as long as it doesn't take a year, you can earn back your investment with profit.
Would you buy in?
I vividly remember on the eve of the airdrop, my brother and I were extremely hesitant, extremely FOMO, and extremely conflicted about whether to buy some monkeys. And when the actual airdrop of $APE happened, the price of Bored Ape Yacht Club (BAYC) itself and $APE both surged, and the whole metaverse was buzzing. At that moment, the entire metaverse was boiling.
Of course, at this moment, you and I already know that this is not permanent.
This even includes "stablecoins."
The peak of UST's popularity was when its market cap surpassed DAI's. At that moment, farmers around the world were ecstatic.
At that time, despite MakerDAO executives thinking their own product was superior, they could only express a bit of sourness on Twitter. This even drew criticism from fervent supporters of Terra (Luna). |
|
Post time 25-1-2024 09:39:10
Post time 29-1-2024 12:17:27