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            <title><![CDATA[What Kind of Assets Are Worth Buying?]]></title>
            <link>https://paragraph.com/@tommyshelby/what-kind-of-assets-are-worth-buying</link>
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            <pubDate>Wed, 18 Dec 2024 13:32:45 GMT</pubDate>
            <description><![CDATA[Recently, Bitcoin finally surpassed 100,000 USDT. Although it has pulled back and will continue to fluctuate around this point, I guess this bull market isn't over yet. After a round of corrections, it will likely rise again. That’s how it works—even the best assets will have both supporters and skeptics. When skeptics sell, and the short sellers are exhausted, the supporters buy in and hold, allowing new buying power to enter, naturally driving up the price. However, within this upward force...]]></description>
            <content:encoded><![CDATA[<p>Recently, Bitcoin finally surpassed 100,000 USDT. Although it has pulled back and will continue to fluctuate around this point, I guess this bull market isn't over yet. After a round of corrections, it will likely rise again.</p><p>That’s how it works—even the best assets will have both supporters and skeptics. When skeptics sell, and the short sellers are exhausted, the supporters buy in and hold, allowing new buying power to enter, naturally driving up the price. However, within this upward force, some are firm holders, and others are arbitragers. On the day the market overheats with too many arbitragers, that’s when the price begins to fall.</p><p>I’m curious if anyone managed to catch the "fat-finger" error at 12.5 USDT. If it were me, I’d set aside a separate fund for an asset I’m optimistic about and place a low bid based on past "wick-downs" to see if I could catch such a "fat-finger."</p><p>For instance, Bitcoin, Ethereum, BNB, SOL, PEPE, etc. Once I caught the "fat-finger," I would immediately close the position. This tactic rarely fails in a bull market.</p><p>Interestingly, as Bitcoin's price broke new highs, more people began talking about it. Yet, there are still those who doubt or deny it. Of course, some do so because of differing perspectives, while others are just ignorant.</p><p>In the U.S. stock chat group, people talk animatedly about U.S. stocks. But when it comes to Bitcoin, their opinions are usually like this: “Bitcoin becoming a global currency has major issues: 1) No mass adoption, 2) No anchor, 3) High transfer costs.” "As a reserve currency, Bitcoin is just a nice idea; in practice, it’s impossible." "Honestly, Bitcoin only has value because of illicit activities."</p><p>If one can invest in U.S. stocks, their investment horizon shouldn’t be that narrow, especially since Bitcoin has been around for 16 years. Despite facing much criticism, it has remained resilient and gradually gained consensus among global investors. Still, it’s not something some people are willing to consider.</p><p>People always judge the world based on their understanding, which is why they can't make money beyond their knowledge. The worst part is being arrogant and biased without realizing it.</p><p>When you're confined to the current asset, you lose the ability to explore other possibilities. You don’t even realize whether you're investing in the asset or in a particular trait of that asset.</p><p>Good investment targets have common characteristics.</p><p>For the asset you’re looking at, what makes it better than others? What makes its advantages repeatable? What qualities keep being repeated? What qualities will continue to be repeated?</p><p>You need to find that, hold on to it, and as long as it continues to exhibit these traits, it will always have investment value.</p><p>To me, such traits must include monopolistic characteristics.</p><p>Over a decade ago, such assets were Moutai, Tencent, and Alibaba. I remember a Moutai distributor who kept buying Moutai stocks. When asked why, he said, "Because Moutai sells the best. Experts say there are only two kinds of liquor in China: Moutai and everything else. Moutai has already monopolized consumers' minds."</p><p>Today, the underlying logic of Moutai and Alibaba has changed, and their monopolistic position is gradually fading. Therefore, investment choices have also changed.</p><p>Domestically, there are two great companies: Meituan, which monopolizes life services, and Tencent, which monopolizes social interaction. If you seize the right timing, you can't go wrong buying these.</p><p>As for U.S. stocks, look at the Big Tech Seven.</p><p>Take Nvidia, for example. In the discrete graphics card market (used for PC gaming and workstations), Nvidia's market share is around 70% to 80%. Its GPU products, such as the RTX series, have almost become industry standards, and many game developers and AI researchers will choose Nvidia first.</p><p>In data centers and AI computing, Nvidia’s share is even more significant, especially in the high-performance GPU market for AI model training and inference, where it holds an almost monopolistic position.</p><p>Then there’s Tesla. In 2023, Tesla's sales accounted for over 55% of U.S. electric vehicle sales, giving it a massive monopoly advantage. Moreover, with Trump back in office, the support for Tesla will be unprecedented. Comparing Tesla’s domestic and U.S. sales, a doubling of its U.S. sales is expected.</p><p>Looking at the crypto world, Bitcoin is the undisputed number one, monopolizing consensus within the crypto community. We’ll see if this bull run can hit the 150,000 USDT many have predicted. Below Bitcoin, tokens like PEPE and DOGE are leaders in their respective sectors and possess monopolistic characteristics.</p><p>Of course, there are many other global assets like these, aligning with development trends and occupying monopolistic positions. These are all worth investing in.</p><p>What we need to do is to select assets with these</p>]]></content:encoded>
            <author>tommyshelby@newsletter.paragraph.com (tommy)</author>
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