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            <title><![CDATA[Bitcoin]]></title>
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            <pubDate>Wed, 18 Dec 2024 09:26:04 GMT</pubDate>
            <description><![CDATA[I came across an interesting perspective which states that Bitcoin has nothing to do with ordinary people. It only becomes relevant to you if you get involved; if you don't, it's just an internal tug-of-war where wins and losses have nothing to do with you. Even if its price soars to one million or ten million dollars per coin, it doesn't concern you because it's essentially a zero-sum casino. Is this really the case? Whether it's Bitcoin, gold, or properties in first-tier cities like Beijing...]]></description>
            <content:encoded><![CDATA[<p>I came across an interesting perspective which states that Bitcoin has nothing to do with ordinary people. It only becomes relevant to you if you get involved; if you don't, it's just an internal tug-of-war where wins and losses have nothing to do with you. Even if its price soars to one million or ten million dollars per coin, it doesn't concern you because it's essentially a zero-sum casino. Is this really the case? Whether it's Bitcoin, gold, or properties in first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen, what is their essence? It's the process of participating in the redistribution of wealth. If I bought something for one yuan and you bought it for one million yuan, doesn't it mean that the fruits of your ten years of labor go to me? You might say you won't buy it. Similarly, you could choose not to buy properties in those cities and refrain from buying anything. But in what form will your assets be stored as a carrier? Cash? In the past twenty years, while you held cash and others bought properties, were your labor efforts really not deprived? You're wrong. When the wheel of fate starts turning, whether you actively participate or not, you will be drawn into it. The world's resources are limited and will be distributed to specific individuals through various carriers and rules. For example, when we work and create value for society, we are participating in the distribution. Those who create greater value will get a larger share of the pie, while those who create less value or just lie around at home will have to accept a smaller share. Do you think that if you don't consume and the amount of money in your hand remains unchanged, you won't be affected? No. Money is just a way of calculating the proportion of social resources. If there is a total of ten thousand yuan and you hold one yuan, you possess a one-ten-thousandth share of the social resource exchange voucher. And if the country decides to open a new field to amass wealth when it can't get your money, and the total amount becomes one hundred thousand or one million, your money will naturally lose its value without being directly taken from you. Why? Because with the unchanged amount of social resources, you can only exchange for one-ten-thousandth or one-hundred-thousandth of the resources. So, I say that the absolute value of money means little; it's the proportion it occupies in the total amount that determines how much you can exchange for. In the era of agricultural civilization, people toiled in the fields with a hoe, obtaining the distribution of social resources by creating social wealth. However, after entering the industrial civilization era, some people can do the work of a thousand people alone. By using more efficient tools, they take a thousand shares. Is it unfair? No. It's just that you don't have the right tools to compete, so you have to accept being outcompeted.</p><p>This is the "creation logic", which is easy to understand and widely recognized. You see, although he takes a thousand shares of resources, he contributes a thousand times more to society than an ordinary person, which seems reasonable. However, the logic of Bitcoin is more difficult to understand because it involves financial, prediction, consensus, risk, and shareholder logics. Given the long period of misdirection we had here, there is a natural misunderstanding and aversion among users towards "making money through judgment", so many people can't understand it and think it's unfair. In fact, it's quite simple. If there is something that everyone wants, regardless of what it is, even if it's just a painting for showing off and everyone wants to hang it in their own home, then those who first realize that "this thing might be desired by more people" and it turns out to be true as more people scramble for it, should this "awareness" be rewarded? Of course, because I also bear the risk of "it might end up being worthless if no one wants it". So it's simple. If more people want Bitcoin in the future, then everyone will invest their hard-earned money into this pool to participate in this game of wealth redistribution. And as people keep pouring their wealth into it, it will inevitably draw funds from other pools. Can you understand this? For example, if there are only the stock market and the cryptocurrency market in the world, as people continuously transfer their wealth and resource shares into the cryptocurrency market, the funds in the stock market will be drained, and won't the price of each stock plummet? Won't those who choose the wrong pool have their wealth taken away? If you don't play and just hold cash, you are essentially playing passively. Because in a continuously expanding large pool, if you don't compete, you lose; if you don't compete fast enough, you still lose. So is it a game of "friends cutting each other's throats"? Of course not. With new wealth constantly flowing in, how can it be called that? Bitcoin is a yardstick. The proportion of the number of your coins to the total amount determines how much fiat currency you can allocate within the market. It's the basis for you to allocate the fiat currency in the market. You might say it doesn't create new value. Then I have to start with explaining how much the "world's first and largest peer-to-peer trustless decentralized value transfer system" is worth. Just think about it. How much is the Internet worth? If you were an "original shareholder of the Internet" or an "original shareholder of SWIFT", how many times would your stocks have multiplied in these decades? Maybe you would already be the richest person in the world. You can choose not to buy Bitcoin or anything else. But remember, cash is also an asset. Essentially, using the proportion of your cash to the total social wealth to participate in the distribution of social resources is the same as using any other asset. What's the difference? Some assets will gain more and more consensus, and then other people's wealth will flow to you; while some assets will lose consensus, and then your wealth will flow to others. Whether anyone likes it or not, as long as you are a member of society, this game is mandatory and inescapable.</p>]]></content:encoded>
            <author>starlight-press@newsletter.paragraph.com (Muse)</author>
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