Recently, with the holding of Berkshire Hathaway’s annual shareholder meeting, a picture went viral on social media: Over the past 20 years, the investment performance of the stock god Warren Buffett was 554%, which did not outperform the S&P 500’s 568%. The S&P 500 represents the top 500 listed companies in the United States, accounting for about 80% of the total market value of the U.S. stock market, also known as “Beta”.
The truth about investment is always cruel. The vast majority of exceptionally smart investment managers spend their whole lives pursuing Alpha (excess returns), only to find that they can’t beat the market Beta. For most investors, it’s better to start by lying flat, buying into an index, and passively getting rich.
Returning to the cryptocurrency market, how many assets have outperformed Bitcoin? How many diligent traders and top fund managers have ultimately achieved better returns than Bitcoin? To my knowledge, there are very few.
A friend scrimped and saved during the bear market and finally accumulated 3 Bitcoins by the end of 2023, but now he only has 0.5 Bitcoins…
The reason is simple. Like many others, he thought the market value of Bitcoin was too high and not an opportunity for ordinary people. Even if it doubled, it wouldn’t change much. He needed to take risks to pursue greater returns. So he went all-in on various altcoins and naturally lost his Bitcoins, ending up with a handful of altcoins and becoming someone else’s liquidity provider.
The same story has happened with Solana. SOL is a high Beta asset in this cycle with certainty. However, like Bitcoin, it has a high market value and lacks the allure of a 10x return. It’s far less appealing than various meme coins. As a result, investors couldn’t stand the loneliness and exchanged their cherished SOL for various meme coins, only to find that they couldn’t exchange back for an equivalent amount of SOL.
“一将功成万骨枯” (one person’s achievement comes at the expense of many) behind a hundredfold performance is the lament of a group of small retail investors.
During a bull market frenzy, most people are overly optimistic, thinking they are investment geniuses and can capture the super Alpha of this cycle, achieving a class leap. When the tide recedes, they realize that the person in the mirror is just an ordinary person oscillating between arrogance and self-doubt. For ordinary people, don’t easily give up the BETA in your hands.
Investing is just like love. Many women/men are dissatisfied with their current boyfriends/girlfriends, always thinking they can find someone better, only to discover that what they once had may have been the best.
Just like in the movie “Goodbye Mr. Loser,” the protagonist Xia Luo once despised Ma Dongmei and believed Qiuya was the perfect goddess. Did Xia Luo really love Qiuya? Maybe not. It could have been an obsession with something he couldn’t have.
When Xia Luo is truly with Qiuya, he realizes that Qiuya is not as great as he imagined. He only loved an imaginary person.
In the end, the time-traveling Xia Luo sees the truth and chooses to cherish the person in front of him. But outside of movies, most people don’t have a chance to make a different choice. Just like a pile of junk altcoins that can no longer be exchanged for the once-held Bitcoins.
So, don’t lose the person who treats you well from the beginning, and don’t lose your Bitcoins.
Understand yourself and learn to be content.
Tags:
SOL
Warren Buffett
Bitcoin
Source link:
https://www.techflowpost.com/article/detail_17673.html
Note: The translation represents the author’s viewpoint and does not constitute investment advice.
Original article link:
https://www.bitpush.news/articles/6683631
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