Bitcoin returned to $ 100,000, and the president supported the encryption, but why are you unhappy?

Author:Happy

Compiled by: Deep Wave TechFlow

Bitcoin price has topped $100,000; we have a pro-crypto president, but strangely, everyone seems angry.

The Overton Window (the range of public acceptance of an issue) has completely changed. This time, things are indeed different, but not in the way we expected.

The Trump presidency poses a puzzling conundrum – what does it mean for my digital assets? There are so many ideas running through my head.

On the one hand, he is the most powerful man in the world, yet he is openly “posting” for our cryptocurrency.

But on the other hand, he used his power and influence to launch a Meme coin that diluted the market value, benefited his family, and tried to maximize capital extraction in this field.

Reality is often stranger than fiction.

Looking back at the history of Bitcoin, the original supporters designed a game theory plan to predict how Bitcoin would gradually take over the world. They believe that the government will fight us first and that eventually we will win. On the surface, this seems to be true.

Bitcoin did win. It has transformed from its past image as "evil people's money used to fund illegal activities" to "freedom money" that is now embraced and promoted by the world's most powerful institutions, individuals, and even countries.

Celebrities like Larry Fink, Donald Trump, Stanley Druckenmiller, Ray Dalio, and Elon Musk have all spoken out positively about Bitcoin at some point. This is in stark contrast to a decade ago, when the only use for Bitcoin might be to buy a slice of pizza, or to have environmental protesters glue themselves to your driveway and accuse you of “destroying the planet.”

However, for those of you who spend 16 hours a day staring at a computer screen, chatting with friends online, and speculating wildly on virtual currencies: I have a feeling that the future is likely to get a lot weirder and a lot tougher.

Throughout the history of cryptocurrencies, we have been imagining the changes that the “future” of these technologies might bring. “The whole world will be on the chain”, “everyone will trade with stablecoins”, “NFT will replace physical art”, “decentralized finance (DeFi) will replace the traditional banking system”.

But historically, these ideas have never really come to fruition. The technology is not yet mature, and governments are hostile to the field. They would rather we not exist, so they will use every means to suppress us.

Therefore, many teams have to focus on designing products that can avoid legal risks and maximize currency prices. Design that truly focuses on user experience has long been ranked at the bottom of the priority list.

In a way, this situation is really good for us internet geeks. In order to push up currency prices and avoid legal risks, one of the main strategies used by many project teams is to directly distribute tens of thousands of dollars of "free funds" to those of us in the form of airdrops.

According to CoinGecko statistics, the total value of the top 50 airdrops is as high as $26 billion.

Since the environment made it almost impossible to produce truly superior products, we instead pretended that these projects had achieved their goals and valued them accordingly.

As a result, we have witnessed many strange phenomena: Layer 1 without users has a valuation higher than most traditional technology companies; the valuation of “Ponzi stablecoins” that rely on new capital injections to maintain their value even exceeds the GDP of some countries. ;ape images trade for more than some properties.

What I’m trying to say is that this entire crypto industry is built on a deeply flawed incentive structure.

In this system, it's just as easy to get rich just talking about building something as it is to actually build it. While many of us criticize this phenomenon, we actually benefit directly from it.

However, I think that may be about to change.

With the emergence of government and regulatory policies that support cryptocurrencies, we finally have a chance to design serious products with real uses for people who actually need them.

This is great news for the industry, but I have absolutely no way of predicting what it will mean for us "speculators."

In a world where legal clarity drives real innovation, will innovators continue to give us “free money” via airdrops?

When the legal environment becomes clearer, will more professionals enter the on-chain ecosystem, thereby weakening the current "speculator spirit"?

If crypto projects achieve technological breakthroughs and attract “real users,” what will be the fate of apps that still have no users?

If governments turn from hostile to supportive, will we blindly switch to those more centralized blockchains?

When the threshold for creating a token drops to zero, will all tokens be diluted and lose value?

As higher quality applications continue to emerge, will we see a large number of real users flooding into the on-chain economy and spending funds? Will these funds remain on-chain long-term, or will they be withdrawn back into the traditional economy?

Ultimately, are we headed for a Web 2.0-like situation where a handful of companies make all the money and other projects pale in comparison?

Does your family's future really depend on whether you buy those seven coins? If you miss them, will you be doomed to poverty by holding on to Ethereum for too long?

Will Michael Saylor sell all his Bitcoin (FSH) on impulse? It sounds ridiculous, but if it happened, we might still be left with nothing.

Will the Ethereum Foundation suddenly disband, and we'll have to watch as Vitalik frantically creates a new blockchain with his "Milady spirit"?

What will happen if Trump decides to launch an “American chain” that airdrops tokens to every citizen while imposing heavy taxes on other chains and tokens?

Will these changes cause currency prices to rise, or will they cause the market to crash?

To be honest, I have absolutely no answer. This is probably the most confusing moment I've had in the past five years.

The only thing I know for sure is that everything is going to change and the cryptocurrency world in four years will look very different than it does now.

So, how do I deal with these changes?

Frankly, I'm not smart, I just lucked out and made some money over the past few years. Therefore, I decided to reduce investment risks and withdraw some funds from the crypto market.

I can no longer afford to bet 95% of my net worth on those "virtual currencies" that plummet 95% every few years.

I just couldn’t bear to tell my girlfriend that I was betting our future on Trump fulfilling his campaign promises. Before that, I had bet everything on him winning the election.

However, I think I may perform better in the future. After all, now I know that if I mess up, I won’t end up on the street because I’ve moved some of my assets into “real assets.”

At the same time, I’m also quite scared about the advanced scams and phishing that may appear this year. Now that we have AI capable of writing better content than most humans, I think it’s only a matter of time before these bots are specifically designed to trick you into stealing your private keys.

To deal with possible future risks, I am also considering hedging. It’s more important than ever to adopt a multi-device, multi-wallet, multi-chain decentralization strategy, and I’m also using a hardware wallet.

I will continue to hold all my Bitcoins. This is the only asset in the crypto space that I truly believe in, and I believe that Bitcoin still has huge growth potential over the next decade.

As for my plan, I just try to adapt as the situation arises. The future will be full of unknowns and surprises, and innovations will continue to emerge. The crypto space is about to experience tremendous growth, along with countless opportunities.

I hope I can stay flexible. I want to have some stablecoins on hand to be able to participate in all the exciting new projects - whether they are experimental, seemingly ridiculous, or those based on meme culture.

I don’t want to take it all too seriously, I want to have fun and make some money and have a good time.

This is my plan: take profits when the time comes, ensure my life is stable, continue to HODL my Bitcoin, wait and see, and then try to profit from the next opportunity.

The future may be full of unknowns and unusual, but no matter what, make sure you at least enjoy it.

Final reminder: Don’t take this article as financial advice, I’m just human and probably even stupid. If you sell your coins, they could go to a trillion dollars; if you hold on, they could go to zero. So, close this page and stop reading. Don't follow me, I'm just talking.