為什麼投資比特幣

Hello everyone, I'm Terry Today I'm going to talk about Bitcoin I mentioned in a previous video that I have about 5% of my assets in virtual currency 90% of which is Bitcoin After that video came out, some netizens told me in the comments below that they hope I can make a video about Bitcoin Although this thing has been circulating on the market for several years, I think many people still don't have some correct ideas or have some basic understanding of Bitcoin and start following the trend

In this episode, I will use the fastest and easiest way to let you know what Bitcoin is and how it works. If you already know, you can skip this part. Then I will talk about why I invest in Bitcoin and some risks that investors need to know. Before we start, if you can help me by clicking the like button below the video, it will give me more motivation to spend time and energy to make these videos. In fact, making videos is really a good time, especially for a one-man team like me, so remember to like it.

Let's talk about the basic principle of Bitcoin. You can imagine it as a public account book that everyone maintains together. It's different from banks. This account book is not maintained by one company or one bank, but by everyone. And it's completely public. Everyone has a copy of the same account book. It says how many bitcoins A gives B, and how many bitcoins B gives C. Here ABC is actually different accounts. The accounts are also public, so you can calculate how much they have in each of these historical transactions.

我A轉一個Bitcoin給B

So I will have a password to prove that I am the holder of the A account. The color of this password is that you can verify that you are the holder of this A account without having to open the password. In other words, anyone who knows this password can control my A account.

So why do we have a Bitcoin wallet? Wallet is used to store these passwords. Many people may think that wallets are used to store real Bitcoin. In fact, wallets are just a abstract concept. Bitcoin is not like the banknotes we put in our wallets. You really hold this currency. It is actually based on this public account book transaction to calculate how much balance you have in your account.

Anyone can transfer Bitcoin to your account because your account is public. When you need to trade, for example, you want to sell Bitcoin or buy Tesla, you need this password to prove that you are the owner of this account. After proving, you can make any transaction.

So when A is transferred to B, a Bitcoin transaction, everyone's banknotes will be updated. The process of updating is the so-called mining computer. By complicated calculations, the account is finally recorded on everyone's banknote. How exactly do they do this? Is everyone's banknote unified? It's more complicated. I won't talk much here. If you are interested, you can go to Google yourself.

Why do I want to invest in Bitcoin? When I first heard about Bitcoin, it was around $10 to $20. Later, my friend was in Coinbase. He told me that all of their employees' salaries were paid in Bitcoin. I was very curious at the time. But I didn't want to invest in it.

我當時就一直覺得這個東西沒有任何實質的價值, 比黃金還不如,純粹就是靠炒出來的。 然後到1718年的時候,比特幣暴漲暴跌, 我當時大概就買了2000塊美金, 然後去刷一個存在感而已。 當時也是一直覺得這只是一個投機的東西, 很像是去賭場賭博那樣。

But until the beginning of this year, I started to buy into Bitcoin and slowly invested my 5% of assets into virtual currency. Note that I used the word investment here. Investment is a long-term friend to me. In the case of basic convenience, I will not sell it because of the short-term market fluctuations. The first reason that makes me turn from investment into investment is that more and more people are using investment to look at Bitcoin.

The market is now much different from 2017 and 2018, with more investors and less people investing in grass currency. This results in a general increase in demand and market value, and the probability of a big drop in 2018 is reduced. From this picture, you can see that it statistics how many Bitcoins are on the trading platform from 2018 to today. What it means on the trading platform is that they can be used for trading at any time.

As an investor, I have transferred all the Bitcoin I bought from the trading platform to my cold wallet. Because I can't find a complete picture from 2018 to May 2021, so I put these two pictures together, but the time axis and the data are correct. From the data of this picture, more and more Bitcoin has been transferred from the trading platform to the cold wallet or other places. This can also be seen from the price trend of Bitcoin.

It means that the number of people buying and selling grass coins has decreased, and the price has been rising because the demand for long-term investors has increased. Just like many old people who don't sell houses, they have been holding the old house for 70 or 80 years. Because the land is limited, the house price has been rising. The second important indicator is that the recognition of Bitcoin by large institutions is constantly increasing. Big companies like Tesla and Square are starting to hold the right hand.

PayPal also started accepting users last year and buying and selling Bitcoin on the platform. And this year, users can start paying with Bitcoin. Visa and Mastercard also announced the opening of Bitcoin to their payment network. From these kinds of tricks, we can learn that the acceptance rate of Bitcoin from a small group of people, maybe a group of IT disaster, to a large number of retail investors in 1718, began to come in to stir up currency. At that time, Morgan Stanley, the top three major US investors, once said that Bitcoin is a big scam.

Until today, Morgan Stanley will be the first major investor in the United States, allowing their customers to buy Bitcoin funds. I think in the next few years, there will be more important stages of Bitcoin and other virtual currencies. A new technology that is widely used by people all over the world needs to go through a long growth cycle. I think it's not too late to invest in Bitcoin now. There is still a long way to go. The last reason I invest in Bitcoin is because I need to share my risk.

I'm talking about the risk of holding cash. As you all know, because of the pandemic, the whole world is printing a lot of money. This chart shows the amount of money in the market. It can be seen that during this period of time, the crazy printing of money will cause a serious inflation. That means the cash in your hand is getting more and more worthless.

能买到的东西就越来越少。 我们可以从房价就可以明显地看出来, 最近全世界的房价都在疯涨, 原物料的成本也在上升, 唯独没有上升的就是我们的薪水。 那在这样的世界, 持有大量的现金是非常危险的, 但是也不能没有现金, 因为现金的重要性就是它流动率很高,

If today I see a business that is suitable for investment or real estate, but because there is no cash, it will lose a good investment opportunity. But now you put cash in the bank, the interest rate is low, poor. If you buy all the stocks, the risk is too high. If you buy real estate, it will be very troublesome to change the line. This will make Bitcoin a good place to distribute risk.

因为买卖变现非常的容易,它也是一个基本上不受全球经济影响的一个投资工具。 我认为未来的比特币是可以完全取代黄金的地位,黄金最大的优点就是它有很大的稀缺性。 比特币也是一样,全世界一共最多只会有2100万个比特币。

And no one knows how much gold there is on the whole planet. The security and circulation rate of Bitcoin is completely beyond gold. If you want to measure the amount and value of gold, it is very troublesome. After buying gold, you may have to live with the bank insurance company and put your gold in it. The fee for gold trading is also very high and complicated.

This is why companies like Tesla and Square will exchange a small amount of cash into Bitcoin. They do this because they can convert Bitcoin anytime they need it and can use it to distribute cash-free risk when they don't need it. For countries like Venezuela, which has a market share of up to 400%, Bitcoin is a big savior for them. I talked about so many good things about Bitcoin, and as investors, we have to look at the shortcomings of Bitcoin very objectively. The first biggest disadvantage is its volatility.

Very very big You may be asleep and directly 20% evaporate It may also be a few days without looking at it and just flip it over So that's why I put the virtual currency 5% of my total assets Now a price of Bitcoin is about 50,000 to 60,000 dollars

It may be a few weeks or months later, it will fall back to $10,000. Of course, I think this opportunity is relatively small now. Because I know it will have a big short-term wave As a long-term investor, I will store it in my cold wallet. I won't think about buying or selling every day. The second one I think is the biggest disadvantage of Bitcoin. It is that its trading is very power-saving. This is why many people like Bill Gates do not look good at Bitcoin. Someone estimated that a Bitcoin transaction would cost about 700,000 watts of electricity.

That is about 700 degrees of electricity. A transaction is equivalent to an average family of one in the United States. The electricity consumption of nearly a month is indeed very unacceptable to many environmentalists. In order to complete a transaction of Bitcoin, it will take a lot of computers and high-speed computing to cause a large amount of electricity consumption.

The solution now is to use renewable energy such as solar, wind, water, and electricity to maintain the future Bitcoin is the formula for the future of human use Tesla is one of the companies that wants to use renewable energy to solve this problem The third is that because Bitcoin is slowly threatening the status of legal currencies The country may ban people from trading with Bitcoin I personally think it's not that easy to ban it completely

Because the internet is too advanced now Unless all the countries in the world agree We just have to block all the virtual currencies But virtual currency has developed to this day I don't think there is a high probability And many countries are slowly promoting their own virtual currency I don't think Bitcoin is completely replaceable for the legal currency Because their use is really different Bitcoin is more like gold Can be used as a asset to distribute risk

The last disadvantage of Bitcoin is that if you are not careful, you may not be able to find all your virtual currency assets. I said at the beginning that you need to have the password to prove that you are the owner of this account. If you lose this password or get cheated by others, you may not be able to find your assets.

Unlike banks, if someone steals my money, I won't worry about my savings. But if my Bitcoin is still on the trading platform and the trading platform is collapsed or robbed by hackers, my assets may disappear. This is why I transfer all my virtual currency to my cold wallet, to avoid this situation. In fact, similar things have happened in Canada and Turkey recently. The owner of the virtual currency trading platform has a lot of money, so you must find a reliable virtual currency trading platform.

Alright, that's it for today. My advice is that if you want to invest in virtual currency, you must really understand the risks here. Don't throw away the money you can't afford to lose and play as a gambler. Don't invest in virtual currency with a bar. If you can't bear such a big wave, maybe investing in other things like real estate will be more suitable for you. I think the development of Bitcoin has become that if I don't invest in it, the risk of losing this opportunity cost is far higher than the risk of investing in Bitcoin. But the sky is not clear. Maybe I'll come back to watch this video in two or three years and think I'm stupid.

There is another one you can invest in called Ethereum. It is a completely different use of Bitcoin. If you are interested, you can google it yourself. I now have about 90% Bitcoin and 1% Ethereum. Then it will slowly increase the proportion of Ethereum investment. That's it for today's video. If you like it, please like and subscribe. Welcome to leave a comment below to tell me your opinion of Bitcoin. If I say something wrong, you can also leave a comment below to tell me. See you next time.