Encryption Investment Macro Observation: Fluctuation and Monetary Policy

Last week, the Token2049 conference was held in Singapore, attracting over 20,000 enthusiastic participants. The scale of the conference doubled compared to last year, and the entire city was filled with vitality. Various parties and events were grand, showcasing the prosperity of the encryption industry.

Looking back at the macro predictions of the past year, my accuracy rate was about 25%. Nevertheless, my portfolio still made a profit. This is because I adhere to a fundamental assumption: when the market experiences Fluctuation, decision-makers will respond with a policy of printing money.

Historical data shows that in order to suppress market Fluctuation, governments and central banks need to create more and more fiat currency. This currency will ultimately flow into encryption assets such as Bitcoin, serving as a balancer.

Therefore, investors' goal should be to acquire Bitcoin at the lowest cost. This can be achieved in various ways, such as pricing labor in Bitcoin, using cheap energy for mining, and borrowing at low interest to purchase Bitcoin.

Looking ahead, major economies are likely to continue loosening monetary policy:

• The Federal Reserve may continue to cut interest rates to near zero.
• The European Central Bank is facing economic downward pressure and will also have to cut interest rates.
• The People's Bank of China has begun to lower interest rates and may further relax credit in the future.
• The pressure for the Bank of Japan to raise interest rates will decrease.

For cryptocurrency investors, this means that more fiat currency will flow into the market. Investors who already hold encryption assets can watch the changes, while those holding fiat currency should consider entering the market as soon as possible.