If the big cows come, which currencies will rise even more?

If the big cows come, which currencies will rise even more?

This wave of market warming up, there is a rumor of a bull market coming, some people burst into earned, but more people are empty, waiting for a callback. Although many people in this wave have stepped on the air, they have seen the trend of warming the market and rekindled the dream of a hundred times. The people who recently asked me about the coin have also proliferated. After all, once the big cow has come, no one wants to miss it. To this end, I have compiled the coins that everyone is concerned with, roughly divided into four areas, and analyze and analyze which areas of the future growth potential of the currency is greater.

Public currency

In the traditional venture capital circle, the most important value investment is the investment of the track, such as the famous “investment track” theory proposed by Shen Nanpeng. In the currency circle, the selection of the track is the most important. At present, it basically follows the development logic of “underlying public chain → solution → project application”.

Give an example to illustrate the importance and value of the underlying public chain.

The current public chain is a mud road, DApp is a car, a mud can not meet a large number of cars at high speed. Only the mud road is upgraded to a cement road to meet the driving needs of the car.

At present, the public chain is a mud road, and there is no cement road. This is the bottleneck of the blockchain, but for investors, this is also an area full of possibilities. To say a hundred times the currency, the probability of this field is even greater.

Anonymous currency

First of all, a misunderstanding, many people think that all cryptocurrencies such as Bitcoin are anonymous, which is actually wrong. Bitcoin is a non-real name system that allows anyone to query the transfer history, balance and capital flow status of a Bitcoin account. Once the bitcoin address is linked to the real person identity, the anonymity of the bitcoin will disappear instantly.

However, anonymity is extremely strong. There are too many people in this world who want to hide their wealth and do not want to be known by outsiders about their financial flows, especially in the gray area. The demand for anonymous coins is not only the demand at the next moment, this demand will always exist, that is to say, the anonymous currency will always have a market.

Now everyone has an understanding, as long as their own currency does not return to zero, it will make a big profit when it reaches the bull market. In many cases, the return of some coins (99%) may not be subjectively desired by the project party, but the market chosen is not proven to be at all. From a point of view, the market for anonymous coins will always exist, this market will not return to zero, and the market capacity is large, there is a good hype value, of course, there may be a high rate of return.

DeFi

Chang Hao once said: "The killer application of the blockchain may not have a large number of users, but run a lot of money. If you use a 'seeking person' to find the Internet killer application to find the blockchain killer application , may not be found."

Judging from the current development of DApp, many of them are directly copying the Internet model, and the pursuit of high user volume is likely to be wrong. The decentralization of the blockchain is more in line with the financial sector, and DeFi (Decentralized Finance) has emerged.

The well-known international venture capital organization A16Z has set up a fund worth 300 million US dollars for the encryption market, and the DeFi field is one of the key areas.

Compared with the volume of the traditional financial market, DeFi is not only a small mention, it is also true, this field may be born a hundred times, or even a thousand times.

Layer2

Now all public chain projects face performance bottlenecks and it is difficult to meet the needs of commercial applications. For example, in Ethereum, once the transaction volume surges, it is easy to cause network congestion. So there is a new solution: the business processing of calculations, transactions, etc. is taken outside the main chain to execute, only the final result is reflected in the main chain, and the intermediate process is not recorded in the main chain. This is the layer2 solution, the most famous is the lightning network.

Therefore, many people are betting on the token of layer2, and that layer2 will be the mainstream of the future blockchain. It is undeniable that layer2 can really improve the performance of the public chain. However, from the perspective of investment, there may not be much hype value.

All kinds of layer2 projects do not need to send coins, but only rely on the original token of the main chain to run normally. Many coins are artificially forced to make, but in fact, the fake demand tokens, because the layer2 network does not need your currency to function properly.

The layer2 solution is very good, but its network does not require tokens, and the value of hype is small.

to sum up

The above is the area that everyone is very concerned about, and it is also the place where everyone thinks it will produce 100 times of coins and thousands of times of coins. However, if you want to suppress a hundred times of coins, you need to have a good judgment on the development trend of the blockchain industry, and you can take it. I hope that everyone will continue to enhance their investment awareness and realize financial freedom as soon as possible.

This article does not constitute any investment advice. (Fire Coin Information)

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

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Opinion

DTCC pours cold water on the hot speculation, Bitcoin spot ETF still subject to SEC's decision.

The filing of the iShares Bitcoin Trust with DTCC has rekindled hope, and investors in cryptocurrency are eagerly ant...

Blockchain

Dry Goods | What is UTXO Merger?

Source: BixinInstitute , original title "UTXO Merger" By David A. Harding This article was originally compi...

Market

Market Analysis | Your Bull Market Stumbling Block: False Indicators of Repeated Passivation

Foreword Let's talk about the market first. Bitcoin crosses the $8,600 line, and other mainstream currencies are...

Blockchain

2019 bitcoin chain data review: nearly 4 trillion US dollars of "giant whale" on the chain during the year are in a dormant period

Text, Data and Visualization | Carol Editing | Bi Tongtong Data Partners | Produced by Chain.Info | PANews "Bitc...

Blockchain

Really unexpected! The Fed system took the opportunity yesterday, and the normal running time of Bitcoin can reach 99.9835%.

Several users reported that on April 2, the Federal Reserve Bank’s real-time settlement system took a short ti...

Market

SEC Leaves Investors in Grayscale 'GBTC' Bewildered as 'ETF Appeal Window' Slams Shut on Discount

Grayscale's discount reduction suggests a higher chance of successful conversion from a closed-end bitcoin trust to a...