Will Ethereum decline? | Q&A

CN
11 hours ago

1 Will Ethereum sink like EOS?

I believe Ethereum and EOS are completely different products.

EOS has something fundamentally wrong in its DNA; it is not a true blockchain.

Currently, concerns about Ethereum mainly focus on this round of price surge. However, I have expressed my views on this in many articles.

Although I am also very regretful about this, I (at least for now) have no doubts about the long-term development of Ethereum.

2 Is there an exit strategy when profits double, and can the exit strategy be strictly executed? The greed at this time is terrifying.

For investments in crypto assets, I do not use a strategy of exiting when profits double.

I am very cautious before buying a crypto asset, considering whether I understand its highlights or if I have a special feeling about it even if I don’t understand it.

Once I decide to buy a crypto asset, as long as its fundamentals and team remain aligned with my expectations, I will hold onto it until its price seems very unreasonable to me or I can no longer understand it, at which point I will sell. When I plan to sell, whether its price has doubled is not a factor I consider.

If the project's fundamentals and team deviate from my expectations, I will sell immediately regardless of its price.

Writing this reminds me of a point I expressed during an online discussion when answering a listener's question:

When investing, I generally completely ignore small price increases, such as 20% or 50%. Such increases are not my investment goals.

If I am aiming for such increases, I might as well engage in business and trade.

For any asset I invest in, my minimum target is to double my investment. If there is no potential for doubling returns, I simply will not buy that asset.

In the crypto ecosystem, this target is even higher.

Regarding the time frame to achieve the target, I have different expectations for different types of investments:

For crypto assets, my general expectation is to reach a set return target every four years;

For the stock market, my general expectation is to reach a set return target every ten years.

As for the execution of investment strategies, I consider myself fairly competent; as long as I reach the set target, I strictly execute it and generally do not hold onto positions unnecessarily.

3 About investing in gold

I have some allocation in gold, but the position is very small.

I have tracked information about gold for nearly ten years, and my overall feeling is that gold is mostly in a silent period, fluctuating within a relatively small range. However, when a bull or bear market in gold arrives, it can last for a while.

For investors to earn substantial returns in gold, they either need to accurately control the bull and bear cycles and have lasting patience during a bull market; or they need to leverage financial tools to amplify price fluctuations during the silent period.

Compared to gold, I still believe that if investors have the energy and time, it is better to study their familiar areas in risk assets (such as the stock market and crypto assets) to find better opportunities in these areas with much larger growth potential.

Human society has completely entered the technological era. In this era and the future, the industries that can continuously create massive wealth for all humanity will certainly be those led by technology (including crypto technology).

Therefore, I will continue to seek opportunities in all investment areas related to technology.

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