Lao Gao, a well-known YouTube channel "Lao Gao and Xiao Mo Mr & Mrs Gao", released a member video titled "Why I Don't Have Bitcoin, and the Real Reason You Shouldn't Have Bitcoin" yesterday (5th). He directly stated that the value of Bitcoin has gradually gained recognition from some countries and institutions, but at the same time reminded investors to carefully consider the timing of entry and beware of hidden risks.
The position of Bitcoin as a financial asset is gradually stabilizing, but don't expect to get rich overnight
With Trump's victory, Lao Gao believes that the United States has gradually begun to recognize the existence of Bitcoin. Although its legal status has not reached the level of currency, its recognition as a financial asset is gradually stabilizing, which provides certain support for its value. However, most other cryptocurrencies in the market have not received similar recognition, so their value tends to be zero, and extra caution is needed:
Everyone doesn't need to worry anymore, whether Bitcoin is based on air, or it's a scam with no value at all. As long as Trump says it has value, it has value, even if it's just a string of numbers, it can't be spent at all, and there's no problem at all.
Although the recognition of Bitcoin has increased greatly, Lao Gao reminds that in the cryptocurrency market, traps far outnumber opportunities, and most novice investors ultimately become the ones who are trapped. Truly getting rich is extremely rare. Although Bitcoin has become part of asset allocation, the purpose of the rich buying Bitcoin is to diversify risks, not to speculate and get rich. Now, unless through leverage, it is impossible to get rich through Bitcoin:
Don't think that Bitcoin is rising so well now, and you can become an overnight millionaire through Bitcoin. I think you have a chance to make two or three times, but two or three times is hard to get rich. To get rich, you have to be at least a thousand times, ten thousand times or more.
Bitcoin may instantly return to zero
Regarding investors who want to buy Bitcoin, Lao Gao mentioned the risks they may face in holding Bitcoin, pointing out that Bitcoin may become the target of hackers, and the password is the core of asset security. It needs to prevent hackers from stealing passwords through technical or social engineering means. He directly stated that hackers "can hack into your computer without you knowing" and "the possibility of hacking into your brain is actually there".
Lao Gao then mentioned the potential crises that Bitcoin may face at the technical level, emphasizing that "the possibility of Bitcoin instantly returning to zero is not completely non-existent". Although Bitcoin is designed to be secure, it still faces potential threats such as 51% attacks and quantum computing, and may also collapse in value due to a global power outage:
In fact, a global large-scale power outage is not even necessary, because the Bitcoin miners are relatively concentrated in some countries, not scattered all over the world. As long as the places where these miners are concentrated have a power outage, because Bitcoin requires huge computing power, this is when the 51% attack problem will occur.
Even in places without power outages, some large miners will instantly gain control of Bitcoin. In fact, they don't even need a power outage, just a network outage. As long as more than half of the miners suddenly lose their network connection, it will also cause this devastating blow.
Another situation that can cause a 51% attack is quantum computing. When someone's computing power exceeds 51%, it will become centralized, its structure will collapse, and its value will instantly return to zero.
Call for not blindly following the trend to invest
In addition, Lao Gao also expressed his views on the investment psychology of the Bitcoin market, believing that the high volatility of Bitcoin is suitable for investors with stronger psychological tolerance, but for conservative or unfamiliar investors, they should carefully consider whether to participate. He pointed out that the value of Bitcoin may soar instantly due to the remarks of celebrities, or may plummet sharply due to unexpected events. Investors need to be fully mentally prepared for this.
Finally, Lao Gao called on, before investing in Bitcoin or any cryptocurrency, investors should fully understand the relevant technical principles and legal environment, and make prudent decisions based on their own risk tolerance. Virtual assets are not suitable for everyone, and investment needs to be rational, without blindly following the trend or gambling mentality. As an extremely volatile market, only investors who truly understand and accept its risks may find a place in this field:
You can't expect it to keep rising forever like it is now. When it's time to act, you should still act. When it's time to profit, you should still profit. I think it's hard for it to become a family heirloom. I mean, how many Bitcoins do you want to pass on to the next generation? I think it's difficult. So if you invest, you still need to consider when to sell, after all, that's what investing is all about.
