Non-serious discussion on blockchain finance from "self-tearing" (3): reality and future

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Thirsty

Yao Qian’s speech in the blockchain week mentioned that digital assets are the core and emphasized the key role of digital assets in financial change. It describes the significance of digital assets for future finance, and one of the important points is the liquidity of assets.

We have analyzed above that the blockchain financial world should not be short of money (liquidity), because blockchain finance accounts for a small proportion of global finance. However, the actual performance is very lacking. The achievements of Bitcoin in the field of “digital gold” have almost become the whole of blockchain finance. The expectation of the future of Bitcoin has become the most realistic expectation. A detailed analysis of the current reasons for the lack of money in blockchain finance is as follows:

The dam is too high

Blockchain is an emerging technology that is high and low for ordinary investors. Someone here wants to say that it is difficult to understand the principle of blockchain technology, but it is not, because for the end users, it does not care about the technical logic. The Internet and mobile Internet we use every day are far more technical than the blockchain's more complex technical logic, but we use them as if we are drinking water. The real obstacle is the complexity of the operation.

The complexity of operations leads to asset security issues, which makes smart money hesitate; the complexity of operations reduces the liquidity of assets, just as complex operations in the Internet reduce conversion rates, and complex operations are reduced in the blockchain world. The flow rate of assets. Many people in the industry may have become accustomed to it, because the operation token is just the need of the industry, but for many people watching, complexity is an obstacle. Let us recall that the mobile phone has changed from our time to our organs. While blockchain scientists are investigating the underlying technology, it is equally critical for blockchain inventors to make blockchains better.

Single variety

The same smart money has different preferences, simple logic: old money likes security and stability, new money likes high risk and high income. There is a theorem in psychology that is equal loss and equal income. The pain brought by the former is greater than the joy brought by the latter. The financial manifestation is that the bond market (small risk and small gain) is larger than the stock market (risk big gain) ). The crops in the blockchain test are currently high-risk and high-yield varieties. Almost no investors maintain a risk appetite throughout their investment career: the money that makes money will become conservative, and the conservative ones will be pure gamblers. (Jiucai) I can't grow it anymore.

The current investors in the blockchain world are probably the same. The conservative holding of bitcoin that makes money, the loss of money, every effort to fight again, the water mobility inside the blockchain world has changed. Weak. Simply speaking, the type of capital that attracts a single investment is also very simple. A mature investment market should have products with different risk-returns, so that money that likes different tastes has a place to go.

Good and bad

It is not appropriate to use good and bad at this time, because it is difficult to distinguish between good and bad. As a believer in the blockchain, I have no doubt that there are excellent varieties in the blockchain test field that can grow into towering trees. However, these varieties still need time to develop. A large number of public and applied projects will inevitably stand out from the crowd, and their Token will certainly be worth the money. Time is their biggest enemy. There are still many natural breeds that are not good, but at the current stage, good and bad are indistinguishable.

As an investor chooses a variety of products, in fact, still gambling or give up making choices, after all, money has other places to go. It takes time to grow into a big tree, but there is no water in the field, and good breeds are thirsty. Before those outstanding varieties became a blockbuster, the experimental field needed more and more common varieties that could be discerned at a glance to attract a stream of trickle. The common varieties, from the perspective of assets, should be clear in value and investment logic. The original digital assets need to clear their value logic through reasonable financial design. However, there are assets with clear value logic in traditional financial assets. It is also an important idea to combine it with blockchain finance. Stabilizing coins are among them. Representative, but such representatives are still too few.

What is the future of blockchain finance?

First, give the future a name. Defi is as in the previous article. If it is a narrow understanding, it is not necessarily the most appropriate. The author thinks that Open Finance, which is often mentioned, is more suitable. It has stripped blockchain finance from the blockchain technology, and the technology has finally become non-inductive. The result of technology realization is more important. Defi is a stage where Open Finance is a more ambitious vision.

The non-serious discussion of this article has not been prepared to predict the future. If I have the ability to go directly to buy a lottery ticket or buy a Token to die. The future cannot be predicted, but we can analyze the current problems. Whenever we solve a current problem, we are moving further into the future. The dams mentioned in this paper are too high, the variety is single, and the difference is not the problem that we need to solve the digital assets . Whenever the development path of other industries is compared, the future seems to be clearer. If the practitioners think better about "who is closer" , "black cats and white cats" , "water shortage or water diversion" , We will be closer to the essence of the development of the industry.

As an entrepreneur in the blockchain industry, we will share with you in a non-serious way, and we will explain and practice our understanding of Open Finance in a more professional way.

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Author: Yang Tao, FinNexus founder, Wanchain co-founder