Long-term bullish on encryption assets and technology stocks

During the online discussion over the weekend, many readers asked about the future trends of Bitcoin and Ethereum. They are particularly concerned about what price levels we can sell to lock in profits in advance to avoid a significant pullback or even a big dump if a Bear Market comes.

The characteristics of this bull market are not very obvious, so I can't see clearly how to sell at a high position right now. However, if we look at these issues with a long-term perspective (5 years, 10 years), it becomes much easier. When viewed from a long-term perspective, it helps to eliminate a lot of entanglement and anxiety in mindset, and it also allows us to capture more certain results with simpler methods.

Seeing this issue, and considering the recent series of events happening in the U.S. and globally, I believe that not only crypto assets but also U.S. stocks can be viewed with a long-term perspective to see a relatively clear trend.

In our conversation, I talked a lot about my views and opinions on Peter Thiel.

After the recent shooting incident involving Charlie Koch in the United States, looking at the chain reactions that have erupted from the U.S. and around the world, I believe some of the core issues that Peter Thiel is worried about are gradually evolving into harsh realities and are rapidly intensifying.

For example, the tearing apart of values, the impact of illegal immigration, the "threats" that he imagines America is facing...

The prescriptions he offered for all these concerns, in my opinion, boil down to two key points:

The first is that the United States exits globalization and focuses on solving internal issues.

The second is that we must use technological acceleration to solve these problems.

The first point goes without saying, that is the present continuous.

The second point is also developing rapidly ------ but this point seems to be discussed less by the mainstream media now.

I don't know if everyone has noticed that after Trump took office during this term, who were the guests he publicly and massively summoned to the White House?

Are they the financial elites of Wall Street?

No.

They are the tech elites of Silicon Valley.

The elites of Wall Street have hated Trump.

He is fully committed to the crypto ecosystem, threatening to sanction banking giants... All these actions clearly show that he has significant differences from previous Democratic and Republican presidents.

The elites of Silicon Valley seem to have never entered and exited the White House as frequently and prominently as they do today in the past two or three decades.

Some people explain Trump's behavior purely from a commercial perspective, but I think he has a strong sense of urgency and crisis beyond business — he is doing everything he can to seize these tech giants.

A photo circulated online a few days ago, showing a group of tech elites around Trump------all of whom were either funded by Peter Thiel, were early investments of his, or are still currently in his portfolio.

So there are people online saying that the influence on the White House has shifted from Wall Street in the east to Silicon Valley in the west.

This statement is very insightful.

If we believe this, we can naturally draw a conclusion:

The driving force behind the future development of technology in the United States will no longer be solely the power of the market; national power will also significantly penetrate and participate in it--------Palantir receiving orders from the Department of Defense is a typical example.

I believe this is just the beginning.

So over a longer period in the future, I believe that from a long-term trend perspective, American tech stocks will still perform quite well.

Of course, this does not mean that these stocks only rise and never fall, nor does it mean that the US stock market only has bull markets and no bear markets. Rather, it indicates that, from a larger perspective, the long-term upward trend of technology stocks is very obvious.

This is not only an economic necessity but also a requirement of the U.S. national strategy, and it is the only cure prescribed by Silicon Valley elites typified by Peter Thiel for various issues.

I underestimated this point before.

On the other hand, although the United States' withdrawal from globalization is an obvious trend and Europe is also increasingly showing this momentum, I believe that the future world will still be impossible without communication and interaction. Regardless of how countries become divided in politics, values, and ideologies, everyone will still be loosely connected together.

Moreover, even if the United States withdraws from globalization, it will still strive to maintain the hegemony of the dollar.

Cryptographic assets are the optimal choice to solve these problems and continue the hegemony of the US dollar. Whether it's Bitcoin, Ethereum, or US dollar stablecoins, I believe their advantages in this regard will increasingly surpass those of gold.

Moreover, cryptocurrency technology itself is a cutting-edge technology that the current U.S. government values highly, alongside artificial intelligence.

Therefore, if we can see through this logic, for crypto assets, especially Bitcoin and Ethereum, which have relatively controllable risks, it might be better to simply ignore short-term fluctuations and focus on the long-term trends of 5 to 10 years, prioritizing a long-term steady approach. As long as the short-term price is not excessively high, do not sell casually. Even if there is a significant pullback in the upcoming Bear Market, try to resist the psychological pressure and focus on more distant and grander benefits.