Original | Liu Jiaolian
Last night's internal reference "9.26 Education Chain Internal Reference: Challenges and Optimism Coexist" mentioned that in the past two days, the A-share market was boosted by a combination of policies and several doses of cardiotonic shots. The Shanghai Composite Index, which was still groaning in the ICU below 2,700 points on the 17th and 18th, rushed directly into the KTV at the close of the 26th and stood above 3,000 points.
Gold also hit a record high of $2,668 per ounce, which is more than 130 times higher than the $20 per ounce in 1924 before the Great Depression, when the US devalued gold. This means that over the past century, the actual value of the dollar has depreciated by more than 99%. The next key point for gold is $3,500 per ounce, which is 100 times the $35 per ounce peg price before Nixon tore up the Bretton Woods system in 1971. Breaking through this point means that 99% of the 99.4% of the century-long depreciation was completed in the last 50 years from 1971 to the present.
This century is the century of loneliness for gold. In 2008, Satoshi Nakamoto gave the world BTC ( Bitcoin ) in a paper. After it was launched in 2009, in just 15 years, the value of BTC jumped from zero to $65,000 as of September 27, 2024. In the historical task of measuring and revealing the truth of the great depreciation of the US dollar, gold is no longer alone. BTC will take over this historical mission and move forward.
At the end of August, in "8.28 Teaching Chain Internal Reference: The US may lose the financial war, will it be a surge or a plunge first and then a surge?" Teaching Chain pointed out, "Sullivan is here." The most important thing is to negotiate before doing it, so that you will feel more confident. In the early morning of September 19, the Federal Reserve announced an unexpected interest rate cut of 50bp (see the 2024.9.19 Teaching Chain article "The Federal Reserve's interest rate cut has landed, and half of the people are wrong"). On the 24th, the central bank and other three departments issued heavy policies, lowered the reserve requirement ratio and interest rates, and launched new monetary tools to directly inject substantial benefits into the stock market (see the 2024.9.25 Teaching Chain article "Hot Thinking after the Central Bank's Big Move"). On the 25th, the Ministry of National Defense officially announced that it had successfully launched an intercontinental ballistic missile into the relevant high seas of the Pacific Ocean. The US side expressed appreciation. On the 26th, the Political Bureau suddenly held a meeting to set the tone for monetary policy and fiscal policy, greatly boosting market confidence (see "9.26 Teaching Chain Internal Reference: Challenges and Optimism Coexist"). By the close of trading, the Shanghai Composite Index returned to 3,000 points.
The underlying needs of capital are similar to Maslow's needs theory of human beings. Human beings need food and security, while capital needs liquidity and security. Empty slogans of "confidence" are too illusory. "Liquidity" plus "security" can become a paradise for capital. The financial war has achieved a phased victory over the Federal Reserve, proving that no one can drain our liquidity. Shoot a strategic killer to deter the restless rats and show that we have enough ability to defend the security of this land. Monetary, fiscal, military, and political dimensions attack at the same time to form a joint force - in order to boost the market and reverse the trend in one fell swoop, the country has really put in a lot of effort and made great efforts.
The arm wrestling between the big brothers has been decided, and the old page has been turned. The new page has quietly opened. The big brothers are already toasting each other, but there are still some confused people who don't know what's going on, standing there alone in the wind. The struggle is still going on, but the offensive and defensive situation has changed. Those who still stick to the old situation will be quickly eliminated in the near future.
"9.25 Jiaolian Insider: BlackRock says BTC is already a safe-haven asset" introduces BlackRock's attempt to reverse the market's past misconception of the nature of BTC. However, Jiaolian feels that BlackRock's statement still falls into the rut of "risk assets" and "safe-haven assets". In fact, as Jiaolian said at the third quarter private board meeting on September 22, the nature or positioning of BTC should be accurately described as a "safe asset."
All unstable factors that undermine the value of BTC are unsafe factors. The meaning of "safe assets" is to be able to fight and eliminate all these unsafe factors. For example, arbitrary over-issuance, inflation, hacker attacks, market manipulation, unilateral sanctions, forced confiscation, etc. BTC shows the world how safe it is, not by launching ballistic missiles occasionally, but by continuously demonstrating its powerful computing power 24 hours a day, every moment! Unrivaled, unmatched, and indestructible powerful computing power.
The roaring BTC mining machines quickly devour huge amounts of electricity, like a steel torrent or a burning nuclear bomb, making everyone who sees it feel awed and frightened. This is BTC's most powerful strategic deterrent!
For fifteen years, there have always been revisionists who have tried to weave lies and deceive people, telling them that BTC’s Proof-of-Work (PoW) mining is not environmentally friendly, consumes too much electricity, and is unnecessary. They have also deceived people into believing that there are other more clever methods and algorithms, such as PoS (Proof-of-Stake), which can be energy-efficient, environmentally friendly, and more secure than PoW!
Without understanding those difficult and obscure computer knowledge, you only need to return to the basic common sense that humans generally have, and you can see through these rhetoric and lies: How can there be a pie in the sky? How can you have your cake and eat it too? How can there be a technology in the world that can reduce physical costs and be safer?
If you understand these principles, you won’t be brainwashed by the misleading conclusions of academic research papers, the halo of deified founders, or the desperate propaganda of KOLs. You will be blinded by basic common sense, and the more knowledge you have, the less you can distinguish right from wrong.
If you study and ponder BTC in depth, you will find an amazing truth: between "liquidity" and "security", "liquidity" seems to be more important, but in fact "security" is more important. Most retail speculators only know to pursue the benefits of liquidity, but they don't know that liquidity is elusive and difficult to grasp precisely because of its flow.
The development history of BTC from zero to $65,000 tells us that for something that has no practical value and does not produce any practical value, as long as it focuses on polishing and improving its own security, and sticks to this point, liquidity will come naturally.
Capital has no roots and will automatically flow into any safe place. Especially when it is still a capital depression and is not filled with too much water, it is simply a historic layout opportunity.
Launching strategic missiles, building more aircraft carriers, nuclear bombs and aircraft, and strong national defense and security will always be the solid foundation for market development. The stronger the ability to defend security and peace, the more confidence the market and capital will naturally have, and liquidity will continue to flow thousands of miles.
(Official account: Liu Jiaolian. Knowledge Planet: reply “Planet” to the official account)
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is an extremely high-risk product and there is a risk of it returning to zero at any time. Please participate with caution and be responsible for your own actions.)
