Looking at the Future of Crypto Assets from a Historical Perspective

Recent fluctuations in the Crypto Assets market have raised some concerns and doubts. Some believe that the bull market has ended, while others worry that Bitcoin is underperforming compared to the Nasdaq index. However, if we step back from the short-term volatility and look at the situation from a longer historical perspective, it actually reflects an important turning point - we are transitioning from one geopolitical and monetary landscape to another.

Looking back over the past century of history, we can roughly divide it into three periods:

1. 1933-1980: The Peaceful Rise Period of the United States
2. 1980-2008: The globalization cycle led by the United States
3. From 2008 to present: New localization cycle

In the first period, the United States financed World War II and the Cold War through financial repression. The second period was the heyday of globalization dominated by the United States as the sole superpower. Since the financial crisis of 2008, we have entered a new localization period, with countries beginning to turn inward in preparation for possible wars.

In this new cycle, the government will finance wartime spending through financial repression, and savers will face inflationary pressures. Similar to the 1930s to 1970s, holding Crypto Assets may be the best option for preservation of value. Bitcoin, as a borderless digital currency, has distinct advantages over gold.

Although the price of Bitcoin may fluctuate in the short term, the long-term historical cycle shows that Crypto Assets still have a bright future. The current expansionary fiscal and monetary policies in the United States, along with changes in the global geopolitical landscape, have created a favorable environment for Crypto Assets. For investors, paying attention to these long-term trends is more important than short-term fluctuations.