Babbitt column | "cottage coin" killed by a stick

I. Introduction

I read the article of lightning Huang Shiliang two days ago. The article is very interesting. The title is "Why should I study the "cottage" coin", which mentions a deed, that is, he spent 10,000 yuan to buy 100 kinds of altcoins, each A cottage currency bought 100 yuan, the purpose is to create a stake in the relevant altcoin, so that they can think more deeply and learn these coins.

This kind of practice is quite counterintuitive, because in the eyes of ordinary people, investment must invest in mainstream currency, it is necessary to invest in those value currencies, and should be far from the altcoin. But lightning is here to do the opposite, buy a lot of altcoin, then which way is right?

It is meaningless to judge the right or wrong of behavior. After all, everyone's starting point is different. The investment in lightning to buy these altcoins is not very big, and the main purpose is not to make a profit.

The point that really deserves our consideration is: How to define the altcoin? Is our view on the altcoin too narrow?

Second, the origin of the altcoin

In fact, this statement of the altcoin is going back to a long time ago. At the earliest days when Bitcoin was just beginning to blow up. When the news of Bitcoin began to appear in the media, there were a lot of digital currencies that mimicked Bitcoin. These digital currencies are basically nothing new compared to Bitcoin. Simply change the total amount of the issue, for example, from 21 million to 120 million, or shorten the confirmation time of the block, or enlarge the block size.

If it is because of the needs of market development, there is nothing, but more people just use this little change to create a new coin, and then to finance the market. Everyone is very disgusted with this behavior, so they are collectively referred to as the altcoin, and the altcoin is called from that time.

Including the bitcoin forks that have been popular for some time, including BTG, BCD, and SBTC. These coins can be called altcoins, which are all forked from bitcoin. There is no actual point other than financing. value.

Third, the air currency

The altcoin is already too much, but the air currency is still too much.

After the ICO in 2017, the first batch of ICO projects were actually quite good. For example, like Ethereum, the project parties are doing things steadily, and there are many technical and consensus innovations.

However, with the booming effect of ICO, a large number of projects swarmed. At this time, there is a real breakthrough in technology, and there are few innovative projects in the consensus mechanism. More projects are using existing technologies and consensus mechanisms to propose a very grand and broad concept and an unrealistic Development route only.

There are a lot of projects that I don’t know if I think about it, but ICO is really hot at that time. Everything on the exchange will come up with a wave of soaring, so most people don’t care about the actual value behind the project. And the application, do not care about the rights behind the coin, but also do not care about the project is not feasible, only concerned about the skyrocketing and can not grab the amount, these coins at this time, can not even be called the altcoin, the accurate statement is the air currency.

Fourth, the fund disk and model currency

Originally thought that the altcoin and air coins were already exaggerated, but I did not expect that I was too young.

Aircoin has no inherent rights support. It is purely an empty glove, but people's ability to innovate is unlimited. On the basis of air coins, people can create more things. For example, entering the capital disk and model currency since 2018 has refreshed people's perception.

There are a lot of funds in the project of health, health, artificial intelligence, cloud computing, etc., but in essence, it does not matter what the specific project or business, in essence, is to pull the head, this is the relationship between the line, you pull The more people you have, the more you get off the line, the higher your level, and the more money you make.

Like the previous Ponzi scheme, this fund-based project has been around for a long time since ancient times, but it has been repeatedly banned, and often flipped new tricks.

Such projects, on the one hand, are inherently confusing. For those who have never been exposed to financial markets, it is easy to tell whether they are deceived if they are true or not. What is even more frightening is that the current currency circle participates in the fund project. There is a large proportion of people, and this proportion may even exceed 50%. It is the participation of the project that knows that the project is a fund project.

Because they think other projects are going too slowly, the fund project is the most prone to speculation, because someone is in control, because there is "Zhuang", he believes that as long as he runs early enough, then he will be the benefit side. However, the structure of the fund disk project determines that 90% of the people participating in the project must be worthless. Only 10% of the early participants are likely to make a profit. A large number of people lose 10% of the top. Wealth.

5. The "cottage coin" killed by a stick

It is precisely because of the problems of the altcoin, the air currency, the fund disk, and the model currency that the market has a strong sense of rejection of these coins. It is often seen in the media that it is not good to criticize the altcoin. The article, as Huang Shiliang said, "it seems to be a political correctness to despise the altcoin."

At present, there is a saying that 99% of the coins in the market are rubbish, and some people directly target domestic coins, saying that 99% of domestic coins are garbage in garbage.

Although I am not satisfied with many altcoins, I personally think that the above statement is too extreme, and it is a bit of a partiality, a stick to death.

The current blockchain market is still very early, the entire market is not mature, and the supervision has not been involved, so the whole market is mixed.

However, even if there is a mixture of fish and dragons, there are still fish and dragons. It is impossible to ignore the existence of dragons because they are all fish. After all, there are more or less fish, but one dragon is enough. I often have the opportunity to participate in offline activities and have access to project-oriented projects. Although they rarely appear in the media, they are really using technology to change the world. They are real "dragons". The current media ratings are not fair to them.

We need to accurately distinguish these concepts. What is the altcoin? What is air currency? What is the difference between them? Are the altcoins bad? Which projects were mistakenly divided into altcoins?

I think that the concept of "cottage currency" is now infinitely magnified. In some people's minds, they think that only bitcoin is authentic, except for bitcoin, which is all altcoin; some people think that it may be the top 10 in the current market value. Or the top 20, can barely be called mainstream currency, the other is all altcoin, but these definitions are not accurate.

First of all, the three types of air, capital, and model coins are of course unlawful and illegal. They are strongly prohibited by the state. But for the "cotton currency" we need to define more accurately, not to kill with a stick.

I personally think that the currency that does not solve the real market demand is called the altcoin, rather than judging from the perspectives of market value, influence, and media evaluation .

The real market demand mentioned here is the demand other than speculation. The market really needs it. It needs to be used to carry certain rights, such as using it to deduct the handling fee and using it as fuel.

Anyone who can solve the real needs of a certain aspect of the market, even if the current market value can not be ranked in the top 20, should not be classified as a cottage currency; in turn, the truth is also established, if it does not solve a certain real market demand Even if the current market value is ranked in the top 10, the future will be zero, and it should also be divided into altcoin.

For our investment, we need to have a more accurate distinction between these concepts, or else it is likely to lose a lot of excellent and promising investment targets because of a conceptual error.

6. The development of the "cotton currency" is the development of the entire digital currency blockchain.

As the old saying goes: a flower alone is not spring, and a hundred flowers bloom in spring.

I personally think that bitcoin is only the beginning. When the whole industry develops in the future, it will not be how big the bitcoin is, but the innumerable projects form the basis of the whole industry from countless angles.

There will be a variety of tokens in the market in the future. They all have some aspects of innovation, and they are closely related to the market. They have real market demand. They may be very small in the present, and they are also despised by everyone. Altcoin.

In the "cottage currency" that everyone thinks now, there must be hidden dragons in the future;

In the future, the development of China's blockchain industry must be the "cottage currency" among these populations, which will drive the rise.