Babbitt column | Who are we going to earn in the currency circle?

This article does not constitute any investment advice, investment is risky, and you need to be cautious when entering the market!

When you come to the currency circle, you still have to make money, but where do we make money and earn money?

Looking at the development of the technology industry, the whole is spiraling forward, building infrastructure first, and then developing various applications. Therefore, the first round is the infrastructure to make money, and the second round is the business model to make money.

For example, in the mobile phone industry, manufacturers who made mobile phones first made big money. When the infrastructure of mobile phones matured, the profits of the industry were meager, and APP manufacturers began to explode.

Therefore, if you invest, the first phase will invest in infrastructure, and the second phase will focus on business models.

So, is the blockchain infrastructure sufficient? In fact, it is totally useless. You can often hear the news of the Ethereum congestion, and some of the TPS high chains are too low to be centralized, which is difficult to support high market capitalization. The normal global-wide commercial company system TPS requires 2000 TPS-4000TPS. If you want to become a blockchain infrastructure provider, this performance can basically meet most of the needs. As for some projects, millions of TPS are claimed. It’s all hype, not only isn’t necessary, but the traditional centralized system can’t reach this level, and the decentralized system is even less likely to surpass!

Therefore, the blockchain is still in the stage of infrastructure construction. Therefore, for projects that use the business model as a selling point, everyone must be cautious, or be fooled, or they will not go bankrupt until they have completed the infrastructure.

I think there are three levels for earning money.

The first level earns information about asymmetric money. This level is applicable in any financial field and can be achieved with speculation, whether it is stocks, futures or coins. The basic elements of making money are information asymmetry, such as relying on indicator hype, rat warehouse, sitting on the market, insider trading, and so on.

The second level earns money from professional cognition and patience. At this level, investors use their professional knowledge of the industry to find the undervalued investment targets, and then patiently lurk down, waiting for the return of value and the arrival of the market. For example, in early 2000, foreign investors invested in a number of Chinese banks, and the number of earnings after listing Times. According to statistics, the real rise time in all financial markets will not exceed 7% of the total trading time, which means that the market has a profit-making effect of no more than 7%, and the other 93% of the time is for this 7%. A glimpse of preparation, professional cognition and patience are two essential conditions.

The third level earns the dividend of industry development. This is the strategic level of thinking, only the industry's cake is bigger, and truly developed, will produce the effect of making money for everyone, and the development of the industry will bring benefits to consumers and drive the development of surrounding industries. Investing in such industries can truly be called value investment, and while contributing to social and economic development, it also obtains considerable returns for itself. The most typical case is that Sun Zhengyi focuses on investment in the technology industry, especially Alibaba, which achieves a good situation for the country, the market, consumers and investors to win.

In a simple sentence, the first level makes small money, the second level earns money, and the third level can make big money.

Therefore, before making an investment, you must think clearly about the future development of the industry you invest in and the way you invest. If an industry cake cannot grow bigger, then investors will become a zero-sum game. All participants can only profit by harvesting others. The whole cake will slowly deteriorate, shrinking and shrinking, and even the market may die.

In the blockchains of 2018 and 2019, there was some feeling of stagnation in development. The funds, the rat warehouse, and the Zhuangzi were rampant, and the whole industry was dark. Only the first level of people are the most profitable, that is, using various means to harvest.

But don't be proud of the two years of profit through speculation. In essence, the investment market is an infinite enlargement of human nature. Participation in such a market is easily affected by subtle influences, distorting the hearts of the participants.

When you harvest others in the dark, the darkness is also harvesting you a little.

The reason why I still stick to the blockchain circle is to believe in the future. Although the whole industry is confused, many believers are still working hard, and the blockchain is quietly iterative development, a digital space. The embryonic form of the new economy is taking shape.

At the same time of investment, it is also a cultivation of oneself.

Choosing a different path will have different results. Protecting your heart is to protect yourself.

I hope that you will have a thousand sails and return to your youth!

There are four series of future thinking series in the currency circle, which are (1) the twilight of the Ethereum Empire , (2) whether BTC can be independent , (3) who will defeat Ethereum , and (4) who we will earn in the currency circle. ? Welcome attention!

About the author: East of Beijing, public number: bjzdblockchain. Micro signal: beijingzhidong. Senior blockchain investor, engaged in technical research work.

The above information must be retained for reprinting.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Bakkt Receives SEC Approval for Universal Shelf Registration, Sets Stage for Future Growth 🚀

Great news! Bakkt has received approval from the SEC for its universal shelf registration in Form S-3. This will allo...


The Jovial Journey of Starknet: Join the Early Community Member Program and Reap the Rewards!

Great news for fashion enthusiasts! The Starknet Foundation is giving away 50 million STRK tokens in its Early Commun...


BONK, the Doggone-huge Meme Coin on Solana, Bounces Up an Unbelievable 2,000% in Just 30 Days!

Looks like the BONK token is on fire! Despite being a meme coin on Solana, it's skyrocketing at a parabolic rate.


Lugano, the Crypto Wonderland of Switzerland: Embracing Polygon with Open Arms

Lugano Embraces Polygon Revolutionizing Crypto Evolution with Layer 2 Scaling Solution on Ethereum Ecosystem


Alchemy Pay takes the magic to Europe and the UK Expanding crypto payment options

Alchemy Pay, the popular cryptocurrency payment platform, has recently integrated the Euro Instant solution, as well ...


SEC “Spills the Beans” on BlackRock and Grayscale ETF Discussions

According to the SEC website, there are two memos detailing discussions with prominent companies BlackRock and Graysc...