"I would rather buy land than buy bitcoin"-Buffett. The core logic of Buffett's investment is the future cash flow discounted valuation method. He is pursuing a returning asset. He can only have a return if he holds it, not a return that can be earned by buying at a low price and selling at a high price.
Encrypted digital currencies that use proof-of-work PoW as the consensus mechanism, represented by BTC, obviously have no return on holding the currency.
Under the PoS mechanism, holding currency will generate revenue. Although this benefit is just a digital game from the perspective of rational analysis, it is only a dilution of the value of existing currency holdings, but we, at least most of us, are very Love this game. I own PoW coins that cannot generate interest, and PoS coins that can generate interest. And they are divided into two types, one is the purchase cost is very low, now it is a book profit currency, and the other is a book loss currency.
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I also own some bitcoin miners and can generate a small amount of BTC every day. This can be considered a kind of interest.
From the difference between the principal profit and loss and the existence of interest, my holding currency can be divided into the following four types:
1) Coins with principal loss and no interest.
2) Coins that are profitable and interest-free.
3) The principal loses money, but the currency has interest.
4) The principal is profitable, but the currency has interest.
I have positions for the above four currencies. Regardless of PoW or PoS, we will simply evaluate from the two dimensions of principal profit and loss and the presence or absence of interest. My position mentality.
1) Regarding coins with a loss of principal, whether it is PoW or PoS, I will have a mentality of reluctance to sell, and always look forward to returning to capital.
2) For the profitable principal, whether it is PoW or PoS, I will have less pressure to sell.
3) For interest income, I will sell the subsidy expenses without psychological pressure. It doesn't matter whether the hens who are breathing have already paid back.
4) For PoW coins without interest, I generally take the currency-based mentality to measure. Relatively speaking, long-term bullishness.
5) For PoS coins with interest. I generally do not have a currency-based mentality. Relatively speaking, long-term bearish.
6) For interest-bearing coins, I see that new interest is added to the account every day, and I feel that I have earned extra money and am very happy. Relatively speaking, I like this interest-generating currency in the short term. In fact, I know that a lot of investment and financial books have taught us not to sell positions based on profit and loss, but to look at the future. Sunk costs should not be considered. Opportunity costs are the key to investment and so on.
But I found that knowing this knowledge can't change my mindset, and I can't do things according to this knowledge. We don't care if the currency is born or not, I want to know, what is your mentality?