Many holders often say they have made a lot of money, but upon deeper conversation, you realize that most of their gains are just on paper.

For example, I hold 10 Bitcoin, currently priced at 100,000 RMB each, so my on-paper net worth is definitely 1 million. Sounds impressive? The problem is, this 1 million can't be withdrawn at all, can't be spent, and carries huge risks. If all global holders suddenly sell off, the price could drop to zero instantly.

Only when you actually sell and convert to cash does it count as real profit. Otherwise, that 1 million is just like virtual assets in a game, which can't improve your real life. But if you ask me whether I’ve made money, I will still say yes, because I did buy at a low price before.

Data shows that Bitcoin's total market cap is rising, but actual cash inflows haven't kept pace. Statistics indicate that every $1 invested in the past could boost Bitcoin's total market cap by 5 billion. This is similar to the real estate market—everyone appears to be a millionaire on paper, but when everyone tries to sell at once, who knows how low the prices will go.

Whether trading cryptocurrencies or hoarding real estate, holders can produce impressive on-paper data. But the risk of losing money is always there; it’s just that before the bubble bursts, no one is willing to admit it.

If Bitcoin has no real value backing it, its price will ultimately be doomed to bubble. Once it bursts, it will be like the tulip mania—prices will plummet straight down. The same applies to houses; during a chain reaction like the subprime crisis, housing prices can fall dramatically, turning those on-paper wealth into an empty dream.