Renowned YouTuber Lao Gao released a members-only video yesterday, discussing his latest views on Bitcoin. He believes that Bitcoin’s value has been recognized by some countries and institutions, making it a financial asset with “credit endorsement.” However, he also warns that Bitcoin could potentially go to zero in an instant, and its market volatility and security risks make it a risk that cannot be ignored.
(Foreword: Lao Gao’s prediction of “disasters in January and July 2025” may actually happen? Which economic collapse moments will coincide?)
(Background: Lao Gao’s view on metaverse: it will completely change the world! Cryptocurrency and NFT are important to the virtual world)
Renowned YouTube channel “Lao Gao and Xiao Mo Mr & Mrs Gao” released a members-only video yesterday titled “The Real Reason Why I Don’t Have Bitcoin, and Why You Shouldn’t Have It Either.” Lao Gao openly stated that the value of Bitcoin has gradually gained recognition from some countries and institutions. However, he also reminded investors to carefully consider the timing of entry and be cautious of hidden risks.
Bitcoin’s position as a financial asset is becoming more stable, but don’t expect to get rich quick through speculation
Following Trump’s election victory, Lao Gao believes that the United States has begun to gradually recognize the existence of Bitcoin. Although its legal status has not reached the level of currency, its recognition as a financial asset is gradually stabilizing. This provides certain support for its value. However, most other cryptocurrencies in the market have not received similar recognition, so their value tends to zero. One should be extremely cautious:
There is no need to dwell on whether Bitcoin is based on nothingness or whether it is a scam without value. As long as Trump says it has value, it has value, even if it is just a string of numbers. It cannot be spent and there is no problem with it.
Despite the increasing recognition of Bitcoin, Lao Gao reminds that there are more traps than opportunities in the cryptocurrency market. Most novice investors end up being trapped, and there are very few cases of getting rich overnight. Although Bitcoin has become part of asset allocation, wealthy individuals purchase Bitcoin for risk diversification rather than speculative wealth creation. Unless leverage is used, it is no longer possible to get rich through Bitcoin:
Do not think that Bitcoin is performing well now and that you can get rich overnight through it. I think there is a possibility of earning two or three times your investment, but it is difficult to get rich with just two or three times. To get rich, it has to be a thousandfold or ten thousandfold increase.
Bitcoin could go to zero in an instant
Regarding investors who want to buy Bitcoin, Lao Gao mentioned the risks that Bitcoin holders may face. He pointed out that Bitcoin could become a target for hackers, as the password is the core of asset security. One must prevent hackers from stealing passwords through technical or social engineering means. He straightforwardly said that hackers “can secretly invade your computer” and even “invade your mind.”
Lao Gao then mentioned the crises that Bitcoin may encounter at the technical level, emphasizing that “there is a possibility of Bitcoin going to zero in an instant.” Although Bitcoin is designed to be secure, it still faces potential threats such as 51% attacks and quantum computing, and its value could collapse due to a global blackout:
In fact, there is no need for a global blackout because Bitcoin miners are concentrated in certain countries, not scattered around the world. As long as there is a blackout in these places where miners are concentrated, because Bitcoin requires huge computing power, the problem of a 51% attack will arise.
In places where there is no blackout, some major miners can instantly gain control of Bitcoin, and they don’t even need a blackout, just a network interruption. If more than half of the miners suddenly lose network connection, it will also cause this devastating blow.
Another situation that could result in a 51% attack is quantum computing. When someone’s computing power exceeds 51%, it becomes centralized, and its structure collapses, and its value goes to zero instantly.
Caution against blindly following investment trends
In addition, Lao Gao also expressed his views on the investment psychology in the Bitcoin market. He believes that Bitcoin’s high volatility is suitable for investors with a higher tolerance for risk. However, for conservative individuals or those unfamiliar with the market, they should carefully consider whether to participate. He pointed out that Bitcoin’s value can skyrocket due to celebrity endorsements or plummet due to unforeseen events. Investors need to be mentally prepared for this.
Lastly, Lao Gao urges that before investing in Bitcoin or any other cryptocurrency, one should fully understand the relevant technological principles and legal environment, and make decisions cautiously based on their own risk tolerance. Virtual assets are not suitable for everyone, and investment should be rational. One should not blindly follow trends or have a gambling mentality. As a highly volatile market, only investors who truly understand and accept the risks can find a place in this field:
You cannot expect it to keep rising forever. When it’s time to sell, you should sell. When it’s time to make a profit, you should make a profit. I think it is difficult for it to become a family heirloom. How many Bitcoins do you want to pass on to the next generation? I think it is challenging. So, if you want to invest, you still need to consider when to sell. After all, that’s what investment means.
