$BTC US Financial Market's On-Chain Transformation and Future Investment Opportunities in the Crypto World: How to Capture Excess Returns on Mainstream Assets:
Yesterday, December 8
The Chairman of the SEC spoke, predicting that within two years, the entire financial market in the U.S. will migrate on-chain. Although this statement is somewhat exaggerated, as someone within the industry, I find it hard to believe that it will fully happen within two years, considering the entire U.S. financial market is dozens of times the size of the crypto market.
However, the shift of trading financial assets on-chain is indeed a transition that is occurring, and this is the RWA trading that is expanding market size.
Unlike the open attitude of Americans, we are tightening regulations on virtual currencies, including RWA and stablecoins. There is nothing much to say about this, as the institutional frameworks are different, and it’s all for the sake of respective development and stability.
But for individuals, the next few years will bring a new wave of wealth transfer. Whenever this is mentioned, I feel fortunate to have learned about this industry early on, and I even feel a bit of sympathy for those constrained by their limited vision.
A recent major event is the news regarding issues with the Zhejiang Financial Center's wealth management, leaving those who invested heavily in wealth management products in a tough spot.
These individuals faced huge investment risks without enjoying high returns, and in a certain sense, wealth management is just an investment if it cannot guarantee returns.
This round of market in the crypto world is indeed challenging, but to be honest, it is also because people have developed a path dependency, expecting high returns from altcoins, even short-term astronomical returns.
Honestly asking myself, if I had consistently invested in mainstream assets, especially by initially betting on Bitcoin, I would have definitely made a lot of money.
For future investments in the crypto industry, I believe shifting the investment focus to mainstream assets can allow one to enjoy excess returns in the future.
