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 index has been boosted by a combination of policies and several strong stimuli. On the 17th and 18th, the Shanghai Composite Index, which was groaning in the ICU below 2700 points, surged directly into the KTV and rose above 3000 points at the close of trading on the 26th.
Gold also reached a historic high of $2668 per ounce, which is more than 130 times higher than the price of gold before the devaluation in the United States in 1924, which was 20 US dollars per ounce. This means that over the past century, the real value of the US dollar has depreciated by more than 99%. The next key level for gold is $3500 per ounce, which is 100 times higher than the pegged price of $35 per ounce before the Bretton Woods system was torn up in 1971. Breaking through this level means that 99% of the 99.4% depreciation over the past century has been completed in the more than 50 years since 1971.
This century has been a century of solitude for gold. In 2008, Satoshi Nakamoto’s paper brought BTC (Bitcoin) to the world. After going live in 2009, BTC’s value has skyrocketed from zero to re-entering the $65,000 mark in early 2024. In the historical task of measuring and revealing the truth about the depreciation of the US dollar, gold is no longer alone. BTC will take over this historical task and continue to move forward.
At the end of August, in the “8.28 Education Chain Internal Reference: Financial War against the United States: Is it a Sharp Rise or a Sharp Decline and then a Sharp Rise?” the Education Chain pointed out that “Sullivan is coming.” The most important thing is to discuss and then act, which will give people more confidence. In the early hours of September 19th, the Federal Reserve announced a 50 basis point rate cut, which was beyond expectations. On the 24th, the Central Bank and three other departments announced a heavy policy, lowering reserve requirements and interest rates, and introduced new monetary tools, injecting substantial positive factors directly into the stock market. On the 25th, the official website of the Ministry of Defense announced the successful launch of an intercontinental ballistic missile into the Pacific Ocean. The United States expressed appreciation. On the 26th, the Political Bureau suddenly held a meeting to set the tone for monetary and fiscal policies, greatly boosting market confidence. By the close of trading, the Shanghai Composite Index had returned to 3000 points.
The bottom-level demand of capital is similar to Maslow’s hierarchy of needs. People need food and security, while capital needs liquidity and security. Empty talk of “confidence” is too ethereal. “Liquidity” plus “security” can become a paradise for capital. The financial war against the Federal Reserve has proven that no one can take away our liquidity. By launching a strategic weapon and deterring those who are eager to move, we have demonstrated our ability to defend the safety of this land. The simultaneous use of currency, fiscal, military, and political measures has formed a joint force—making great efforts to boost the market and reverse the trend.
The arm-wrestling match between the big brothers has already determined the winner, and the old page has been turned. A new page has quietly opened. The big brothers have been toasting each other, but there are still some ignorant people who are confused. The struggle continues, but the balance of power has changed. Those who are still sticking to the old situation will be eliminated soon.
The “9.25 Education Chain Internal Reference: BlackRock Claims BTC is a Safe Haven Asset” introduced BlackRock’s attempt to reverse the market’s past misunderstanding of BTC’s nature. However, the Education Chain believes that BlackRock’s assertion still falls into the trap of “risk assets” and “safe-haven assets.” In fact, as the Education Chain stated in the third-quarter private board meeting on September 22, the nature or positioning of BTC should accurately be described as “safe assets.”
Any unstable factor that damages the value of BTC is an unsafe factor. The meaning of “safe assets” is that they are sufficient to counteract and eliminate all these unsafe factors. For example, excessive issuance, inflation, hacking attacks, market manipulation, unilateral sanctions, confiscation, and so on. BTC shows the world a safe way to eliminate these factors, not by occasionally launching an intercontinental ballistic missile, but by continuing to demonstrate its powerful computing power 24 hours a day! Unrivaled, invincible, and unassailable computing power.
After in-depth research and contemplation, one will find a surprising truth about BTC: Between “liquidity” and “security,” “security” is actually more important. Most retail traders only chase after favorable liquidity, but they don’t realize that liquidity is unpredictable and difficult to grasp. The development history of BTC from zero to $65,000 tells us that something with no practical value and no production of any practical value, as long as it focuses on improving its security, liquidity will naturally follow.
Capital has no roots, so it automatically flows to any safe place, especially when it is still a depression of capital and has not been filled with too much water, it is simply a historic layout opportunity.
Launching strategic missiles, building more aircraft carriers, nuclear weapons, and aircraft, a strong national defense and the ability to ensure safety are always the solid foundation for market development. The stronger the strength to defend safety and peace, the more confidence and liquidity the market and capital will naturally have.
(Subscription account: Liu Jiaolian. Knowledge Planet: Reply “Planet” to the subscription account.)
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrencies are highly risky and have the risk of returning to zero at any time. Please participate with caution and take responsibility for yourself.)
Original link: https://mp.weixin.qq.com/s/-6EurbiH3_XIBP7WoiGhcg
Note: All articles from Bi Tui represent the views of the author and do not constitute investment advice.
2023 market
Liu Jiaolian
Investment Insights
Bitcoin
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