BTC has reached a record high: coin speculators are short, coin hoarders are undefeated, and workers are honored
Original | Liu Jiaolian
Dapeng rose with the same wind one day and swayed up to 90,000 miles.
When I woke up early on the 5th, BTC continued to advance upward, breaking 68.5k. This actually reached and surpassed the previous high of 68.35k in the closing price on November 10, 2021. As for the instantaneous high of 69k at the time, it was just that much of a shiver.
It reached two levels in February: 42k correction, reaching 50,000. Take a break for 50,000 and pull it to 60,000.
At the beginning of March, the 60,000 correction ended, reaching a previous high.
The one that had no position stomped with regret. Those that have positions or are waiting to buy begin to shiver for fear of being afraid of heights. After all, from January 20 until now, BTC has soared from 38.5k to 68.5k, and there has been almost no correction.
What is even more “frightening” is that looking at the volume chart, on February 29, when it first broke 60,000, there was a fierce clash between long and short periods, and a large amount of volume was released.
Over the next three days, 60,000 consolidated, and the volume was getting lower and lower, but the price was as stable as Mount Taishan. The bears are on the 60,000 line. Those that should have handed over their chips all handed over their chips, while the bulls all laughed.
By March 4 and 5, when BTC bulls once again gained strength, even though the price level was higher, the trading volume decreased. This is what is called a “contraction increase.”
The contraction and rise clearly sends an unmistakable signal to the market: bears have fewer and fewer chips to smash the market to stop the rise, and they are about to run out of gas.
This is a shorting market.
The bit rises, the bit rises, the bit rises after the bit rises.
BTC, which has been rocking all the way, is like the wheel of history, relentlessly passing over the dead bodies of bears. An empty man who can do nothing but use a mantis as a car.
On April 12, 2023, when the teaching chain wrote an essay on “If you want to rush to the top” for BTC, which has just been restored to 25k, the comments section thought it was unbelievable. Here are a few excerpts:
“I'm also bullish, but there's no need for this FOMO.”
“Without the Federal Reserve reaching water release, it's hard to imagine BTC breaking through the previous high of 69,000”
“I'm starting to fantasize. The instructions are almost at the top.”
Today, March 5, 2024, no one will probably doubt the goal set by the title of this post.
However, few people still remember these impressive pioneers. Because people who got out of the car at 25k last year probably haven't returned to the car yet, they have missed out on this round of the market.
Coin traders often go short, while coin hoarders never lose.
Some readers and friends asked, will BTC be bought by institutions in the future, and retail investors will have fewer and fewer opportunities?
Indeed, in our inherent empirical perception, almost all assets and resources are quickly monopolized by large players, and retail investors can only be forced to accept bullying or quit this game and open another market. “Hype the new, not the old” is a high concentration of this empirical wisdom.
However, BTC is just an “anti-common sense” existence. It naturally has the ability to fight against monopolies and continuously diversify itself. As the teaching chain 2021.1.1 article “Why can't your investment outperform Bitcoin?” Said, “Judging from the changes in the distribution of Bitcoin holdings over the past 12 years, the trend from concentration to fragmentation is very obvious.”
As a consensus currency, the more concentrated, the lower the value; the more scattered, the higher the value.
If you play BTC with big players in rich and hostile countries, the coin speculators may get the hang of it, but the coin hoarders who make money off the market will definitely not lose money.
Next, the teaching chain will demonstrate this conclusion from the basic principles from an economic perspective.
In a market economy system, people rely on peaceful and honest exchanges to meet their own needs. This is true whether it is a large household in an enemy rich country or a poor person who is impoverished. Large households, no matter how rich and powerful, cannot force poor people to give them labor without paying them. Otherwise, this is not a market economy system, but a powerful economic system or a violent economic system.
The establishment of a market economy system is not so much a result of political progress as a result of productivity development. The economic basis determines the superstructure. When forced labor has only worse results than paid labor, violent coercion will naturally be replaced by fair trade. Moving bricks or digging sand can be forced labor, but designing software, mobile phones, missiles, buildings, or AI algorithms may make it difficult to achieve good results through forced labor.
What are the characteristics of the rich? No labor required. Even a rich person who is still working, even if he does everything better than others, he needs to distribute part of his work to people who are weaker than him and cooperate in a division of labor, so he can get greater financial rewards. Ricardo proved this a long time ago.
The division of labor is not about comparing yourself to others, but about comparing yourself to yourself. You are better than me at A, B, and C, but if you only do the A that you are best at, and assign B and C to me who is not as good as you are, you and I will get more output. This is the comparative advantage theory that Ricardo discovered in the 18th century. (David Ricardo's “Principles of Political Economy and Taxation”; for Li Jiatu's principle of comparative advantage, you can also read the April 22, 2019 article “The Economics of [In-depth Long Article] 996”)
As early as the 8th century, Li Bai, a Chinese poet from the Tang Dynasty, used the romantic phrase “I am born to be useful,” which suggests the logic of Li Jiatu's comparative advantage theory: stupid people and poor people who have nothing to do can occupy a place in the division of labor and cooperation in the economic system and make full use of his abilities.
Therefore, the rich also need to exchange labor, or products of labor, from the poor. Then, the rich need to pay the poor the corresponding remuneration for this.
However, the debt currency system has created a huge loophole and injustice. That is, it is easier for the rich to obtain excess money during the credit expansion cycle, while during the credit contraction cycle, they can escape debt repayment liability through debt restructuring, thereby obtaining a steady stream of excess money, which can always pay and buy the labor of the poor, and solidify both classes.
Teaching Chain wrote the March 4 article “The End of Bitcoin: It May Be Equal to the Sum of All Remaining Human Value!” It has already been clarified that the modern economy must implement the credit adjustments proposed by Keynes in order to stimulate excessive consumption, balance excess production, and avoid the inevitable crisis of capitalist production methods.
The monetary authorities must encourage the expansion of credit during the economic expansion cycle. So it must be that the wealthy class with strong assets, strong social relationships, and a greater sense of adventure are more likely to borrow. Under the rules of the game that distributes excess money according to debt, priority is given to taking away and enjoying the purchasing power of money surplus generated by credit expansion.
In 2005-2020, when the housing market was booming, real estate company owners and loan buyers who actively bought houses became a group of people who ate meat and drank soup.
When the economic cycle is reversed and the crisis of deleveraging hits, the authorities are unable to watch as companies and individuals that initially borrowed and leveraged their positions go bankrupt. This will cause serious economic recession and social unrest, so they must rescue the market. Essentially, they want to write off part of the debt and allow the original borrowers to escape a disaster. This is the “harmonious deleveraging” that Dario Kopp, founder of the Bridgewater Fund, used. This popular science video can be called a classic. It depicts all the operation techniques in detail. Readers who haven't watched it can click on the 2023.8.23 article “China's Deleveraging” by opening the education chain and pull it down to the second half to watch the full video.
Keynes's approach, for the sake of a good economy and a good society, allows some people to borrow money and eat spicy food on sunny days, but at a time of economic downturn and cruel deleveraging, they have no choice but to let go of debt. There is no need to pay back the excess wealth they spent on what they had eaten in the first place; instead, the debt was passed on to the whole society to bear. As a result, the good things enjoyed were shared by a small number of people, but the pain of debt repayment was shared by the majority of poor people. Can this be fair to talk about? Even according to the simple ethics of “debt repayment” that has existed in ancient times, it is difficult to say that it fits people's view of justice.
The rich have used the unspeakable secrets of the credit cycle to achieve class perpetuation. As long as the money from “Xujia Banknote Printer” (Education Chain 2023.8.27 article) continues to be printed and never finished, the rich can always ride on the poor without labor, while the poor work hard all day long and cannot turn around after generations.
Soros said, “The history of the world economy is a serial drama based on illusions and lies. The way to get rich is to understand the illusion, invest in it, and then quit the game before the illusion is recognized by the public.” (Soros “Financial Alchemy”)
However, the poor are tightly bound to the fiat credit game and are unable to “quit.”
At the end of the day, people lack an “exit” tool.
In 2008, a person under the pseudonym Satoshi Nakamoto proposed a new idea, Bitcoin.
On July 6, 2010, Satoshi Nakamoto posted on the Bitcointalk forum and shouted, “Escape the risk of any inflation in centrally managed currencies! The total circulation of bitcoins is limited to 21 million.” (Refer to Liu Jiaolin's 2023.10.17 article “Genesis: History Is Reincarnating Again”)
Thanks to Satoshi Nakamoto, for giving poor people around the world a tool to “quit” the game. At any time, anywhere in the world, anyone can freely choose to “quit” fiat games without approval or permission from any authority. Saving 10%-50% of salary income every month and replacing it with BTC is a specific action to “quit.” (Liu Jiaochain's 2021.8.21 article “From Investing to Financial Freedom”, 2021.3.19 article “Saving Bitcoin Gives You Financial Freedom”)
Since rich people, no matter how rich, even Bill Gates, Zuckerberg, or Buffett, can't get as much overprinted BTC as a matter of priority, as measured by BTC, they bought the labor of any BTC holder strictly reduced their own BTC in the mathematical sense and increased the BTC of the BTC holder who provided the labor.
If they never work and don't take part of the labor of their company employees for free, then the BTC in their hands will definitely continue to decrease and eventually reach zero.
Therefore, Ricardo's principle of comparative advantage determines that the rich must buy the labor of the poor, and withdrawing from BTC will surely cause the poor's labor to disperse the BTC in the hands of the rich, thereby promoting the decentralization of BTC, that is, increasing its value.
No matter how rich the rich are, they cannot handle the large number of poor people and the endless hours.
For example, even a large coin hoarder like MicroStrategy, even if it hoards 200,000 BTC today, and when it sells in the future, it will spend 10 coins every day to buy other people's or companies' products or services, then it will only take 20,000 days, and in less than 55 years, it will be exhausted.
Now everyone understands that in fiat games, income is a carrot in front of a blinded donkey's head. No matter how hard they try to make money, the poor can't make all the money in the hands of the rich; after the poor quit the fiat game and choose to hoard BTC, the rich will find that they can no longer earn it without effort and easily lay back and win as before. The poor will soon rely on hard working hands to earn all of their BTC through reasonable and legal fair exchange.
The conclusion could not have been more obvious: in the BTC game, the one who hoards BTC with off-market income is the eternal winner.
This game will be a fairer and more honest game: people who love labor and hard work always win.
Only then did the lyrics really come true: If you fight, you will win!
BTC has realized that beautiful vision: workers are not only the most honored, but also most benefited.
(Official account: Liu Jiaolin. (Knowledge Planet: Reply to “Planet” on the official account)
(Disclaimer: Nothing in this article constitutes investment advice. Cryptocurrency is an extremely risky breed, and there is a risk that it will return to zero at any time, so please participate carefully and be responsible for yourself.)
