After hearing the good outcome of Fed's meeting from a friend, have decided to write on the benefits of saving your bitcoin. I know you are so eager to know what the news is all about.
The Fed Chairman Powell said that he would maintain the ultra-low interest rate of the U.S. dollar close to zero and promise not to raise interest rates before 2023. He also said that the inflation rate is not enough, and it is better to exceed the target inflation rate by 2%. A little more is better. Many analysts exclaimed that they exceeded expectations. Bitcoin rose sharply. The most funny thing is the big V who called fans to get off the car to avoid danger a few days ago. He immediately slapped his face and said that he didn't expect the Fed to be such a pigeon, so he should get on the car again. On UNI, he shouted for a week of rallies to lighten up, and then suddenly turned 180 degrees and said that UNI was going sideways. It seemed that he was going to make a new high. Do you think this makes the fans who have been obedient to get off the car feel so embarrassed?
In fact, in the long-term perspective, the Fed dares to temporarily play stubbornly and threaten to raise interest rates, or even implement a real interest rate hike, it is just creating an opportunity to increase the position on the market, and it will never last, just like I was in 2/ 27 article "Global Crash: Supermarket discounts you panic buying, Bitcoin discounts you cutting meat? "As mentioned in [link], Bitcoin is essentially a century-old gambling between Satoshi Nakamoto and the Federal Reserve. The bet is that the Federal Reserve can only print money on a long-wave cycle scale, and over-issue US dollars to support the accelerated expansion of US Treasury bonds. This Ponzi bubble. For long-term holders of Bitcoin, it is expected that the Fed will not dare to raise interest rates and continue to release water. If the Fed dared to raise interest rates and close water in the short-wave cycle, it would take advantage of the opportunity of squeezing the asset bubble to buy bottom and increase its position in Bitcoin. Don't worry about the failure of bargaining, because the Fed will definitely come back to release water. The Bazi Jue is the most effective tactic to deal with the Fed.
Western mainstream economics is brainwashed economics. It makes people believe that a market based on the principle of resource exchange can bring fairness. Learning this kind of knowledge will only become a enslaved person in the modern capital system. If the market is fair, with a certain growth rate of productivity, why would anyone get rich? The difference in ability and the difference in luck are simply not enough to explain this systematic deviation, which is sufficient to cause class differentiation. This deviation is obviously not random, but systematic. Marxism is pragmatic learning, it tells you the secret of getting rich. Marx said that the only purpose of capital coming into this world is to proliferate itself. Whoever can make capital multiply more quickly will be more qualified to be possessed by capital, and capital will go to whom. Do you want to get rich? As long as you know how to make capital multiply faster, capital will find you on its own. Do you want to know how to make capital multiply faster? Marx also told you the answer, that is to make money be money. You must not rely on your own labor, your little labor capacity is simply not enough to satisfy the desire for capital proliferation. You must get something for nothing and make money lying down. How can you lie down and make money? You need to invest in other people's time and let them work. Then, according to the capitalist distribution law, the capital, that is, you, can occupy all the profits for free, and the workers can only create from it Of the total value of, there is only a small piece of cake that is enough to meet the needs of its survival and reproduction. Marx called this kind of gain for nothing as exploitation, but this is nothing but the rules of the game of capitalism. It is just this game that you have to participate in.
There is a small bug in this system, that is, workers can accumulate a certain amount of capital by relying on their own diligence and thrift, and then they may choose not to be enslaved anymore. If there are too many such people, capital will not find enough and good enough workers, and the bargaining power in the talent market will be weakened, and they will be forced to accept the increase in labor prices, thereby increasing their costs and reducing their profits. It also weakens its ability to multiply. Capital is not abstract, it represents the common will of people possessed by capital, a kind of class consensus. Think about it in another way. It turns out that you can make 10 million a year when you lie down, but now you can only make one million. Would you be unhappy? Of course it will be very uncomfortable. What to do if you are unhappy? Of course the problem must be solved. How to solve the problem? It is to go straight to Huanglong, so that the working class cannot rely on getting up early and being greedy and frugal to accumulate enough capital to turn it over. How to prevent them from accumulating capital? The best way is to over-issue currency, because currency is the only way for every ordinary worker to save. Continuous and continuous over-issue of currency can suppress them in that class, and they will never turn back.
You said they can learn to invest? But when it comes to investment and capital markets, do you mean the major of leeks or the major of financiers? If they dare to enter the capital market, it will only allow financiers to harvest the little money they have saved harder. In the art of war, there are three corners. Leave an exit that seems to speed up your turn, to attract those with bright brains, higher labor income, and faster savings, to create a comprehensive pocket array, and you can kill it. In this way, what this bureau has done is complete enough.
Halfway out Cheng Yaojin. Satoshi Nakamoto brought Bitcoin to people. Bitcoin is a non-interest-bearing asset. If you lie down and live by spending bitcoins, sooner or later you will spend them all. You said that I can do the same, throw bitcoins out, lie down on my own, and earn more bitcoins by exploiting the labor output of others, so that I can have more bitcoins to spend. But as my article on 2020/12/31 "Why can't your investment outperform Bitcoin?" "As analyzed in [link], on a long-term scale, there will be no investment method that can outperform holding Bitcoin without moving. Because if there is such a method, you will earn all the bitcoins in time, and bitcoin is the consensus currency. The process of concentrating bitcoins is the process of decreasing the value of bitcoins. When all of them are concentrated, The value of Bitcoin is zero. Therefore, surprisingly, with Bitcoin as the standard, the logic of capital proliferation does not work.
In this way of reasoning, apart from scams and abductions, there is only one sustainable method that will not go bankrupt, which is to work on your own, in exchange for more bitcoins, and continue to save. And when you save enough Bitcoin for the rest of your life to eat, wear, shelter, and propagate your offspring, you can retire. When you retire and stop working, because other people are still working and producing, the total wealth of the society continues to grow. Therefore, the unit value of Bitcoin continues to increase accordingly. This means that the value of Bitcoin in your hand will continue to increase. When the legal currency is abolished, the increase in the value of Bitcoin will be reflected in the increase in consumer goods that can be exchanged for a unit of Bitcoin.
Assuming that the world’s average productivity growth rate, that is, the level of wealth increment, is 5% per year, the annual consumption level is controlled within 4% of the amount of Bitcoin savings, or that the annual consumption level of Bitcoin is saved 25 times and then retired and consumed every year 4% of Bitcoin is used for living expenses, then you will enter a "sustainable" survival mode. "Sustainability" should be quoted because your life is limited; if your life is unlimited, it will be spent sooner or later. Although your Bitcoin savings will continue to decrease, due to the continued slow appreciation of Bitcoin, the remaining Bitcoin will be enough to support your consumption for the rest of your life. For example, if your annual consumption level can be controlled within 300,000 RMB, you only need to save enough Bitcoin worth 30 * 25 = 7.5 million RMB to retire. Since the CAGR of Bitcoin at the current stage is expected to be as high as 40% instead of 5%, only 1.2 million RMB of Bitcoin (calculated at the previous high price of 20,000 dollars, or 9 Bitcoins) is sufficient. Of course, at the current stage when the bull-bear conversion is obvious, it is necessary to appropriately lighten the position in the bull market and withdraw the budgeted expenditure for the next 4 years in advance to avoid selling coins in the bear market. Taking the above 300,000 as an example, it will be about 1.2 million in 4 years. If you set a target lightening price of $150,000, you only need to reduce your holdings by 1.5 bitcoins. The remaining 7.5 bitcoins will continue to be held and will be withdrawn at one time until the next bull market. The next time Bitcoin rises, the number of holdings to be reduced will be even smaller, so don't worry about it being spent. Maybe after another one or two cycles, the bull-bear conversion of Bitcoin will no longer be so obvious, but will run more smoothly, then you don't need to bother to perform timing operations. This kind of sustainable survival model of retirement, we call it financial freedom.
This is the most direct benefit that Bitcoin as an anti-inflation and anti-exploitation fair currency brings to every ordinary person. For this reason, I will advice you try to save your Bitcoin and don't lose it, because in due time, it can bring you freedom.