Yesterday, my friends' circle and various groups were filled with news celebrating Bitcoin Pizza Day. Coincidentally, Bitcoin has once again reached a historic high of $110,000 in the past two days.
In this atmosphere, everyone excitedly celebrates this holiday belonging to Bitcoin: 15 years ago on that day, a programmer bought two pizzas for 10,000 Bitcoins.
The historical significance of this matter goes without saying, as it emblematically endows Bitcoin with intrinsic value.
But especially in recent years, whenever this day comes and everyone celebrates this holiday, what is talked about more is what the situation would be like if this programmer had kept all (or some) of these Bitcoins until today.
I opened the historical trend of Bitcoin on coingecko, and the starting point of the recorded data is April 28, 2013, when the price of Bitcoin was 135 dollars.
I think the price is still high at this time, so I tried tradingview again. The records here are more detailed, and I found the time when Bitcoin first reached 1 dollar, which was around February 1, 2011.
Why do I want to find out when Bitcoin first reached 1 dollar?
Because Bitcoin has achieved a 100,000-fold increase from 1 dollar to 100,000 dollars. If an ordinary person is fortunate enough to obtain a 100,000-fold return from an investment during their lifetime, even if their initial investment amount is not large, this return is sufficient to allow them to achieve financial freedom and elevate their status to a certain extent from an ordinary person.
Traveling back to 2011, for our generation, whether we were studying or already working, taking out 100 RMB from our usual pocket money or salary to invest shouldn't have been difficult, right?
If that 100 yuan had been used to buy Bitcoin back then, its value today would be 10 million RMB. This asset, even in first-tier cities, can actually allow one to live a relaxed and easy life as long as they do not excessively pursue a luxurious lifestyle.
But the difficult thing is, even if we really bought Bitcoin with this 100 yuan at that time, how many of us could have held onto it until today without making any moves in between? How many people could completely block out the ups and downs that Bitcoin went through during this period, even experiencing a crash to zero?
To block out all these distractions, I think the most essential points are actually two:
First, believe that its future has value.
Second, completely abandon the mindset of trading in waves.
For the vast majority of people still exploring the crypto ecosystem today, I estimate that the first point is relatively easy to some extent---after being immersed in this ecosystem for so many years, one can more or less establish a certain understanding of Bitcoin in their heart.
The difficult part is the second point; otherwise, we wouldn't be unable to resist checking the market from time to time and wanting to see the coin price. In the process of trading in waves, the easiest pit to fall into is that once you sell, it's very hard to buy back, ultimately leading to completely missing this wealth express.
Therefore, the long-term holding of Bitcoin is a more critical test for investors.
Recently, I've been coming across Lin Yuan's videos from time to time. In his videos, he often says that buying stocks means holding them long-term and not selling. However, he doesn't always speak rigorously, but fortunately, since I've watched many of his videos, I can understand his words in context. What he means by not selling in his videos is that he holds onto the stocks he is optimistic about and doesn't sell them, rather than implying that once he buys any stock, he won't sell it.
In the past investment cases of Linyuan, Darentang is a relatively valuable case for reference.
Linyuan bought the S shares of Darentang that are listed in Singapore. Compared to A shares, S shares are cheaper and have more generous dividends. He made a heavy investment in this stock in 2013. However, the price of Darentang's S shares has been almost stagnant from 2012 to 2022 over the course of 10 years.
In this situation, if it were an ordinary investor, they would have lost patience long ago and sold off the stock. If they did that, they would definitely miss out on Daren Tang's upcoming surge: from 2022 to 2025, Daren Tang entered a skyrocketing mode, with the stock price soaring 10 times over the three years.
In the case of Darentang, it achieved a 10-fold increase over 13 years.
In the case of Bitcoin, it achieved a 100,000-fold increase, but it also took 14 years.
So what I want to say is that for ordinary investors, if they really want to achieve epic wealth, they must be friends with time, whether in traditional investment fields or in the crypto ecosystem.
The dream of getting rich overnight and being obsessed with swing trading is the biggest enemy for ordinary people in achieving wealth advancement.
Thinking about it this way, I am increasingly inclined to hold Bitcoin and Ethereum for the long term. Unless the market is extremely crazy, I will try not to engage in the so-called "selling at a high" even if the market is performing well.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Is Bitcoin "dumping at a high price"?
Yesterday, my friends' circle and various groups were filled with news celebrating Bitcoin Pizza Day. Coincidentally, Bitcoin has once again reached a historic high of $110,000 in the past two days.
In this atmosphere, everyone excitedly celebrates this holiday belonging to Bitcoin: 15 years ago on that day, a programmer bought two pizzas for 10,000 Bitcoins.
The historical significance of this matter goes without saying, as it emblematically endows Bitcoin with intrinsic value.
But especially in recent years, whenever this day comes and everyone celebrates this holiday, what is talked about more is what the situation would be like if this programmer had kept all (or some) of these Bitcoins until today.
I opened the historical trend of Bitcoin on coingecko, and the starting point of the recorded data is April 28, 2013, when the price of Bitcoin was 135 dollars.
I think the price is still high at this time, so I tried tradingview again. The records here are more detailed, and I found the time when Bitcoin first reached 1 dollar, which was around February 1, 2011.
Why do I want to find out when Bitcoin first reached 1 dollar?
Because Bitcoin has achieved a 100,000-fold increase from 1 dollar to 100,000 dollars. If an ordinary person is fortunate enough to obtain a 100,000-fold return from an investment during their lifetime, even if their initial investment amount is not large, this return is sufficient to allow them to achieve financial freedom and elevate their status to a certain extent from an ordinary person.
Traveling back to 2011, for our generation, whether we were studying or already working, taking out 100 RMB from our usual pocket money or salary to invest shouldn't have been difficult, right?
If that 100 yuan had been used to buy Bitcoin back then, its value today would be 10 million RMB. This asset, even in first-tier cities, can actually allow one to live a relaxed and easy life as long as they do not excessively pursue a luxurious lifestyle.
But the difficult thing is, even if we really bought Bitcoin with this 100 yuan at that time, how many of us could have held onto it until today without making any moves in between? How many people could completely block out the ups and downs that Bitcoin went through during this period, even experiencing a crash to zero?
To block out all these distractions, I think the most essential points are actually two:
First, believe that its future has value.
Second, completely abandon the mindset of trading in waves.
For the vast majority of people still exploring the crypto ecosystem today, I estimate that the first point is relatively easy to some extent---after being immersed in this ecosystem for so many years, one can more or less establish a certain understanding of Bitcoin in their heart.
The difficult part is the second point; otherwise, we wouldn't be unable to resist checking the market from time to time and wanting to see the coin price. In the process of trading in waves, the easiest pit to fall into is that once you sell, it's very hard to buy back, ultimately leading to completely missing this wealth express.
Therefore, the long-term holding of Bitcoin is a more critical test for investors.
Recently, I've been coming across Lin Yuan's videos from time to time. In his videos, he often says that buying stocks means holding them long-term and not selling. However, he doesn't always speak rigorously, but fortunately, since I've watched many of his videos, I can understand his words in context. What he means by not selling in his videos is that he holds onto the stocks he is optimistic about and doesn't sell them, rather than implying that once he buys any stock, he won't sell it.
In the past investment cases of Linyuan, Darentang is a relatively valuable case for reference.
Linyuan bought the S shares of Darentang that are listed in Singapore. Compared to A shares, S shares are cheaper and have more generous dividends. He made a heavy investment in this stock in 2013. However, the price of Darentang's S shares has been almost stagnant from 2012 to 2022 over the course of 10 years.
In this situation, if it were an ordinary investor, they would have lost patience long ago and sold off the stock. If they did that, they would definitely miss out on Daren Tang's upcoming surge: from 2022 to 2025, Daren Tang entered a skyrocketing mode, with the stock price soaring 10 times over the three years.
In the case of Darentang, it achieved a 10-fold increase over 13 years.
In the case of Bitcoin, it achieved a 100,000-fold increase, but it also took 14 years.
So what I want to say is that for ordinary investors, if they really want to achieve epic wealth, they must be friends with time, whether in traditional investment fields or in the crypto ecosystem.
The dream of getting rich overnight and being obsessed with swing trading is the biggest enemy for ordinary people in achieving wealth advancement.
Thinking about it this way, I am increasingly inclined to hold Bitcoin and Ethereum for the long term. Unless the market is extremely crazy, I will try not to engage in the so-called "selling at a high" even if the market is performing well.