Bitcoin Breaks $110,000: Asymmetric Opportunity for Value Investors

The price of Bitcoin has broken through the $110,000 mark, sparking heated discussions in the market. For those investors who missed the earlier entry opportunities, the question arises: is it too late to enter now?

In fact, the extreme volatility of Bitcoin creates unique asymmetric opportunities for value investors. By deeply analyzing the supply and demand structure of Bitcoin and the factors driving its value, we can uncover the long-term investment logic it contains.

The Asymmetric Opportunity of Bitcoin

Bitcoin has three major mechanisms that provide asymmetric opportunities for value investors:

1. Deep cycles and extreme emotions lead to price deviations from value.
2. Price fluctuations are severe, but the actual probability of "going to zero" is extremely low.
3. Intrinsic value exists but is often overlooked by the market, leading to "overselling"

This structure often leads to Bitcoin being severely undervalued during periods of market panic, creating excellent buying opportunities for investors with a long-term vision.

The Value of Bitcoin

Although Bitcoin does not have traditional financial metrics, its value can be quantified from the dimensions of supply and demand.

Supply Side: Scarcity and Deflation Model

• The total supply is fixed at 21 million coins.
• Halved every 4 years, the inflation rate continues to decline
• The stock-to-flow model reflects its scarcity value.

Demand side: Network effect

• The number of active addresses continues to grow
• The number of non-zero balance addresses exceeds 50 million.
• Layer-2 solutions such as Lightning Network expand application scenarios

In addition, the adoption by institutional investors and at the national level is continuously strengthening the demand for Bitcoin.

The essence of value investing is to seek asymmetry.

The core of value investing lies in finding a structure with limited risk but significant potential returns in the gap between price and value. This is exactly the characteristic that Bitcoin presents during periods of market panic.

True value investing is not simply about "buying cheap", but rather:

• Stay calm when others panic
• Layout when others leave the field
• Pursue disproportionately large returns with limited risk

The high volatility of Bitcoin is not a threat, but rather creates a rare opportunity window for visionary investors.

Conclusion

The investment logic of Bitcoin is based on:

• Scarcity is the bottom line
• The network effect is the ceiling
• Volatility is opportunity
• Time is a leverage

For investors who can see through short-term noise and focus on long-term value, Bitcoin may be the purest asymmetric investment opportunity of this era.