Opinion | Under turmoil, is hedging a Bitcoin script?

"You never know which accident or market will come first?"

Maybe come together.

At the beginning of the new year, when everyone was immersed in the Lunar New Year 2020 and came earlier than in previous years, Xiao Wang, who brushed his circle of friends, found that BTC suddenly rose, and once rose from 6850 USD to 8467 USD. This is certainly not to celebrate the Spring Festival, but because of a spy scene in the United States and Iran. With the halt on both sides, the price of bitcoin began to decline gradually, dropping to around 7,731 US dollars, which is similar to gold. The industry believes that the role of Bitcoin in this incident has allowed us to see a gradual maturity of "digital gold".

For a long time, Bitcoin with its own financial attributes has been regarded as a safe-haven asset by many people, that is, it has the same properties as derivatives such as gold and crude oil. Stable assets. When "hedged assets" are frequently linked with Bitcoin, this seems to form a global consensus. However, according to the data, the positive correlation between Bitcoin and gold in 2019 rose from negative to 0.2, but it is not enough to prove that the two have a strong relationship, or are the same type of assets.

Blockchain is the Internet of Value. The metal attributes of these are in different system designs. Tokens can represent currency, bonds, equity, etc. to conduct market transactions. However, it is undeniable that even if the blockchain represented by bitcoin has gradually become a new type of investment product, the market circulation is still not an order of magnitude compared to the gold spot. This is also an important reason why everyone is still skeptical about Bitcoin or other cryptocurrencies as "hedging assets" because it is too unstable.

Although bitcoin cannot be a safe-haven asset at present, it still has huge financial value, such as a fixed circulation against long-term inflation; such as the current day Defi, is also becoming a traditional financial business giant to provide more possibilities. As far as the blockchain is concerned, the eleven years are actually not very long, and the ecology, technology, and mechanism are still in a state of constant exploration.

It is possible that even Satoshi Nakamoto did not think that the blockchain will appear in this way in 11 years. The Staking model has become mainstream, and Defi is already a hot market. Even PoW, which was the core mechanism of Bitcoin, also faces obvious centralization problems and the problem of retreating to the historical stage. Today's blockchain industry has long been incomparable.

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Waste of resources has become synonymous with PoW-under the 28TH / S standard computing power, it runs 24 hours a day, consumes up to 38 kilowatts a day, which is about three times the power consumption of ordinary households; 0.00114112 BTC, which is a new daily mining machine The amount of excavated BTC; an annual carbon emission of 34.7 million tons, equivalent to the carbon emissions of the whole of Denmark. It has become the slogan of the project leader led by various PoW mechanisms to combat ASICization of mining machines. Some even modify the underlying algorithm for it, and even modify the consensus mechanism altogether. It is also in this era that PoC stands out from many consensus mechanisms by virtue of the fact that everyone can mine, reduce mining costs, eliminate centralization.

Many people who don't know about PoC think it is a concept that has just been proposed, but it is not. PoC was applied to Burst's project in 2014. Miners searched for the correct hash value by storing data themselves, so as to package blocks and get rewards. As a leader in the field of PoC, Lava has a deep understanding of the blockchain, and has improved the PoC using a unique flint mechanism. Flint is generated by mortgage Lava, and mining can receive double Lava rewards. It can be understood as Upgraded version of Staking mechanism, the value of flint is regulated by the market.

Lava uses the binding of computing power to realize that different computing power can be bound to the same address, which enriches the development of the "mining pool" ecology in mining scenarios. Miners and mining pools are no longer independent, which not only guarantees the healthy cooperation of the mining ecology, but also protects the concept that everyone can mine.

Market regulation and ecological development are both considered, and of course the application of offline scenes is also essential. For offline payment, Lava also put forward his own views. At present, the team is actively promoting the development of blockchain payment, and through point exchange and other technologies, to achieve point-to-point decentralized cross-chain transactions. With this technology, the flow of information between blockchains will be greatly enhanced, thereby achieving value circulation between tokens. The independent blockchain network will eventually move towards the future of interconnection through atomic exchange.

Cryptocurrencies still have a long way to go to become "digital gold", but it is not unpredictable. I believe that Lava, with its strong financial attributes, will be enough to be the catfish in the financial pool.