From the perspective of investment, should we focus on business or technology? Babbitt Industry Welcome Class

On the evening of Thursday (February 29), the fifth session of Babbitt Industry Orientation Class was officially launched. The course speaker is Xu Yingkai, the founder of BlockVC. His topic is "Business Investment, Blockchain from an Investment Perspective: Should I Focus on Business or Technology? 》

Xu Yingkai originally worked in the traditional financial world. In 2017, with several years of investment experience, he established BlockVC, a venture capital agency for blockchain investment, involved in seed investment, venture capital, private equity investment, and project incubation. In recent years, he has invested in more than 160 global blockchain projects such as IOST, NKN, Celer Network.

He has written three "Memoirs of Masterpieces in the Coin Circle". These three articles are very meaningful for practitioners to understand how investors are investing in blockchain projects. BlockVC also frequently publishes investment and industry research reports. Recently, its secondary strategy research report also successfully predicted the Bitcoin market from January to February 2020, and predicted that the halving market has just warmed up, and a climax can be seen after the return in February. In addition, its industry research has conducted a full range of analysis and research on mainstream assets such as Bitcoin, Ethereum, and platform currency before rising.

The following is a summary of the content of this course, and the detailed content can be viewed in the course playback: "Business Investment, Blockchain from an Investment Perspective: Should You Focus on Business or Technology? 》

Xu Yingkai

Blockchain applications may become the basis of "Internet of Everything"

Blockchain has three application levels.

Blockchain 1.0: currency, blockchain 2.0 contract, blockchain 3.0 collaboration.

The three application levels correspond to different application scenarios.

For example, the main application scenarios at the currency level are encrypted digital currencies related to cash, such as currencies, transfers, remittances, and digital payment systems. Among them, the most successful application case is undoubtedly Bitcoin.

For example, the main application scenarios at the contract level include things like stocks, bonds, futures, loans, crowdfunding, insurance, and so on. The most representative of the contract level is naturally Ethereum.

For example, the main application scenarios at the collaboration level include things like identity authentication, notarization, arbitration, auditing, logistics, medical identification, and voting. These applications have efficiencies and synergy beyond current currencies, economies and markets.

It can be imagined that if the above scenarios are implemented one by one, then the underlying blockchain technology will undoubtedly become the most basic technology in the future "Internet of Everything" era.

There is a "golden circle" in the blockchain ecosystem, and the three major trends are irreversible

How do we see the industrial ecology of the blockchain? It is divided into three layers.

Blockchain ecology

▲ Picture from the course PPT

The core is the blockchain technology, which includes the public chain, the alliance chain, and so on. Here is the arena for universal protocols.

Then there are distributed applications, such as the clearing and settlement of transactions mentioned above, payment transactions, supply chain tracing, and so on.

At the outermost edge is the blockchain financial infrastructure, including things like chip design, brokerage, asset custody, asset management, etc.

The development of this ecosystem indicates that the development of blockchain technology is an irreversible process. It has three major trends.

First, as an emerging alternative asset, crypto assets have become a traditional tool for allocating funds to institutions. For example, Bitcoin has become the best-performing hedge against global economic risks.

Second, distributed applications continue to emerge, and distributed finance (DeFi) is the starting point for the commercialization of blockchain, such as payment, clearing and settlement, and insurance.

Third, blockchain technology will become an important means of global financial infrastructure innovation, including the emergence of DCEP and Libra, which will make it easier to deploy global financial facilities.

Cryptocurrency future outlook: "halving the market" and the bull-bear cycle resonance

Bitcoin history has experienced two halvings of output in the time dimension, which are among the main rising waves of the Bitcoin bull market. The halving is often accompanied by a short-term enlargement of volatility.

From the point of view of the characteristics of constant total volume and no interest, Bitcoin has the characteristics of commodities. According to the theory of supply and demand that determines the price of commodities, halving will reduce the daily supply of Bitcoin, and the leftward shift of the supply curve will increase the possibility of price increases.

In the field of investment, BlockVC believes that DeFi will shine in the future, and in the commercialization scene, it will focus more on participation by way of equity investment, and favor projects that can bring actual business transformation and commercial implementation.

The above is the fifth lesson. About 30% of the highlights of Xu Yingkai ’s live teaching content. If you want to know Xu Yingkai ’s more investment methods and his judgment on halving the market price in 2020, you can subscribe to watch the course playback: "Business Investment, Looking at blockchain from an investment perspective: Should we focus more on business or technology? 》

In the next issue, Huang Butian, the founder of Yunxiang Blockchain, talked about "Innovative breakthroughs. How do startups break through and take advantage of the industry's first opportunity?" 》 , Please watch the course, please click: listen to the class immediately

From February 25th to March 2nd, 7-9 pm every night, Babbitt Editor-in-Chief Tang Xialing, Ant Blockchain Chief Solution Architect Ma Shitao, Deputy Dean of Digital Asset Research Institute Meng Yan, Cloud Elephant Blockchain founder Seven big people, including Huang Butian, Xu Yutao, the chief innovation consultant of Microsoft's Omni-channel Business Unit, Xu Yingkai, the founder of BlockVC, and Hu Jie, a professor of practice at the Shanghai Advanced Institute of Finance. Let's study together in "Babbitt Industry Welcome Orientation".