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How should ordinary people participate in the blockchain industry? 10 minute emergency learning blockchain

Time : 07/08/2021 Author : trklfa Click : + -
        In the last article, we explained the differences and connections between bitcoin and DCEP, Libra and blockchain technology, distinguished several concepts that are easily confused in the industry, and learned that bitcoin is a global blockchain system that uses blockchain technology and has a similar but not identical structure to DCEP. So, what can we do with these basic concepts. Today, when the blockchain boom is ignited, how can ordinary people in it seize the opportunities of the times? Let's start with the current situation of the whole industry. One is the programmers engaged in development. These people either develop the software layer for bitcoin, or develop the counterfeit currency themselves, or develop the corresponding software for the counterfeit currency, and also engage in relevant development for enterprises.
 
        Due to the decentralized nature of blockchain development itself, these people work globally or independently or organized. They are the backbone of the technological progress of the whole industry. The second is to do the production and sales of mining machines or participate in them. This is a group of people related to mining machines. These people make profits through the production, sales or use of mining machines. It is a complete industrial chain. The production of mining machines depends on sales, and the miners make money through mining. Even the mining machine manufacturers themselves participate in mining. These people are the maintainers of the stability of the blockchain network and ensure the safety of bitcoin and other Shanzhai coin networks. Third, service providers, in short, are the people who provide services for the whole industry, including exchanges, wallet dealers and media. These people provide mobility for the whole industry, and they are responsible for the mobility of exchange, personnel and information.
 
        Finally, there are participants and investors. There are long-term value investors who look like bitcoin, traders who attempt to speculate, of course, there are also hot spot swindlers and ordinary people who do not understand technology but blindly participate. These people are contributors to enhancing the network value of the entire industry. In fact, this point has been mentioned in our account more than once. Since the industry is at a relatively early stage, various start-ups still have different degrees of labor shortage, and the requirements for education and professionalism are far from the level that the industry should have. When the industry matures, the threshold will become higher. Therefore, at this stage, looking for start-ups with correct values may be the best way for ordinary people to invest in themselves and the future, After all, learning at work is the most helpful to cognitive growth.
 
        If you have development experience, you should focus on software development and smart contract writing, because these two directions are areas that must be needed no matter how the blockchain technology develops in the future. Do not fantasize about the overnight wealth brought by the startup of Shanzhai currency, or do relevant development for currencies with too small market value. These are basically a waste of time. Ordinary people without knowledge and technology, apart from improving themselves and taking the above two paths, have only one last opportunity to share the dividends of the times & mdash& mdash; Invest in the blockchain industry. However, for truly high-quality projects in the industry, all kinds of private equity funds have already filled up the quota. The market is not a fool. New projects that can fall into the hands of ordinary people are usually left over by large funds or simply despised, either stupid or bad. You can rest assured.
 
        Therefore, we do not mention the private placement of high-quality projects or other fields that ordinary people cannot touch, but only the part with the lowest investment threshold. Listed companies, here refers to the listed companies whose A shares contain the blockchain concept. The shares of these companies can generally be easily purchased in the secondary market. When the blockchain concept is hot, these companies usually follow the trend. However, this subject-matter investment problem is still concentrated on the threshold of qualified investors. Since the companies engaged in the blockchain are mixed, and there are many hot spots, the cost of identification is relatively high. However, the listed companies with advantages are still reviewed and endorsed by the CSRC, which is more formal than the general start-up enterprises.
 
        Although the audit problems have also been frequent in recent years, the overall advantages outweigh the disadvantages. Investors can choose limited companies with good cash flow, which prefer software layer development and have core products other than blockchain. These companies can share the industry dividends and are suitable for investors with low risk appetite. For start-ups, since most of the high-quality start-ups can not be reached by ordinary people, this refers to the token of profit repurchase in the blockchain industry. Generally, exchanges or software development companies have this feature. This part of the investment logic is also very clear. The leading exchanges or companies are selected, and there is no target of the listing plan. Because this type of token has cash flow and is a valuable asset, the logic is clear.
 
        In addition, it needs to be specially mentioned that some domestic start-ups claim profit repurchase or connection with listed companies, which is usually a fraud, because in China, such behavior is illegal and cannot be handled financially, especially the connection with listed companies. There is a huge risk of supervision and non performance, which requires special attention. This approach is suitable for traditional investors with high risk appetite. Finally, invest in cryptocurrency. The cryptocurrency here removes the startup token mentioned just now, and refers to bitcoin, compliance stable currency and other counterfeit currencies in the public chain. The investment risks here are compliance stable currency, bitcoin and Shanzhai currency in order from low to high. Investors should screen according to their risk tolerance. The compliance stable currency market is not large, but retail investors still have enough room to do some arbitrage transactions, At the same time, it has certain compliance, so this part is suitable for investors with low risk appetite.
 
        Then it is to invest in bitcoin. We also mentioned in previous articles that if you are optimistic about the blockchain industry for a long time, it would be foolish not to allocate a bit of bitcoin assets. As the pillar of the blockchain industry and the most widely recognized public chain in the world, bitcoin has no fatal defects. At the same time, due to its own value storage characteristics, it can also well assume the functions of cross chain assets and cross chain intermediary of digital currency of sovereign countries. Bitcoin is still in the process of moving from virtual to real, and still has good growth. Once the above events occur, it will produce a real tipping point for the landing of bitcoin. Although bitcoin itself has some regulatory risks and black history in the short term, in the long term.
 
        The logic of bitcoin's landing has never changed. The long-term interaction logic between bitcoin and compliant currencies such as digital currency of sovereign countries and Libra can be found in our previous article, and will not be repeated here. This trend is not seen in other counterfeit coins. However, since there is no physical asset endorsement behind bitcoin, it presents higher volatility. This target is still only suitable for investors who are long-term bullish on the blockchain industry and have high risk appetite. The last one is Shanzhai coins. Expansion and supplementation. This definition is established for a long time and cannot be changed. By observing the changes in the cryptocurrency market in recent years, we can see the growth of Shanzhai coins and the frequent changes in the market value ranking, while the status of bitcoin is more stable.
 
        Although innovative projects emerge in an endless stream, and there are many more advanced ideas and ideas than bitcoin technology, in the end, these voices and expectations of bitcoin replacement disappear in the market fluctuations. The reason is only the process of market value and cognitive regression. From the perspective of economics, since bitcoin and Shanzhai coin can be easily converted to each other, and their functions are both overlapping and different, it is very likely that the two will coexist in the long term, so the possibility of replacing bitcoin in the short term is very small. Moreover, because most bitcoin developers are extremely cautious and risk averse, many new technologies and new ideas of Shanzhai coin can be put into practice and verified faster. Therefore, Shanzhai coin is more like a test field for new functions of bitcoin.
 
        This is actually equivalent to expanding the functions and application scope of bitcoin. Therefore, short-term investors usually hope to explore the opportunity of sudden wealth in the Shanzhai coins, but they do not realize that these Shanzhai coins will make bitcoin better. Therefore, Shanzhai coin can only be used as a short-term hot spot tracking object. In the long run, the main value of the blockchain industry is still maintained on the pillar of bitcoin. Any blockchain enterprise has operational risks, the real economy has downside risks, and any sovereign currency has default risks. These three risks can be hedged by bitcoin. At the same time, the total wealth and currency circulation of the society are always growing. The increase of wealth will boost the inflow of value. The issuance of national legal digital currency, the increase of the demand for asset chain, and the demand for international value flow will boost the demand for bitcoin in the long run. This process is irreversible.
 
        This has created a very magical phenomenon: the economy is down, the national confidence is down, the use of bitcoin to hedge risks, the economy is up, the national wealth is growing, and the demand for bitcoin allocation is increasing. The demand is always upward. It's strange, isn't it? Why does this happen? Because bitcoin is more like an option, the holder actually uses the current price of bitcoin to buy a perpetual virtual option, which is used to hedge the risks brought by the economic downturn, and at the same time, obtain excess returns in the economic downturn. The cost of this option is the current price of bitcoin. If bitcoin returns to zero, investors will lose the option fees they pay. If bitcoin succeeds, investors will have unlimited profits.
 
        
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