The future development of inscriptions. We are currently in which stage of the inscription relay race.

The Evolution of Inscriptions Our Current Position in the Relay Race of Development

Source: Doushuo Blockchain

These past couple of days, we finally saw the market correction, especially with the significant pullback of inscription tokens. In this situation, I want to share some honest thoughts and feelings. The psychological burden is not as great as it was during the market boom.

After all, for most investors, it is during market corrections that they become calm and composed. It is in times like this when I can say some slightly positive words without triggering impulsive behavior in ordinary investors.

Old readers who frequently read my articles know that I have always paid close attention to the development of the inscription ecosystem. In this process, I care about both the advantages of this ecosystem and the problems and shortcomings it faces.

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Since I started writing my first article in May of this year, as this ecosystem develops, considering its advantages and disadvantages, I am increasingly inclined to believe that this ecosystem will become more and more active in the future, or at least its development should continue until the end of the next bull market (2024-2025).

Therefore, in this article today, let me share my speculation:

This wave of inscription development far exceeds my previous expectations, and it is very likely that inscription will reach new highs in the upcoming bull market.

By new highs, I mean two things:

First, the prices of these top inscription tokens (at least those in the Bitcoin and Ethereum ecosystems) are very likely to surpass their previous highs.

However, to what extent and at what price, I cannot predict. I also do not evaluate those bold predictions online.

Second, with the continuous development and diffusion of the inscription market, in the next year or the year after when the market enters the bull market, there is a high probability that new tokens with hundredfold returns will emerge in this field.

This is worth the attention of investors.

If we expand on the first meaning, I believe that since May of this year, after this period of market turbulence, the prices of the top projects in the Bitcoin and Ethereum ecosystems have already experienced gains far exceeding that of Bitcoin and Ethereum.

Once the market improves again, this momentum is likely to continue.

This means that their gains in the future, although not as high as before, will still be higher than those of their respective network tokens (Bitcoin and Ethereum).

Now, we can clearly see that these top inscription tokens are leverage for their respective network tokens (Bitcoin and Ethereum), just like how NFTs were leverage for Ethereum in the past.

If we expand on the second meaning, I believe that investors with a certain financial strength and the ability to tolerate risks can, under the premise of protecting their core holdings (Bitcoin + Ethereum should account for at least 50% of the total investment proportion), strive to become experts in a specific area of inscription based on their interests and expertise, and use a portion of funds that they can afford to lose to boldly explore and practice, in order to discover their own pearls and treasures as soon as possible.

Because the field of inscriptions is perhaps another opportunity for us ordinary retail investors after 2017.

Compared to the 1CO in the bull market of 2017, this time the opportunity is more equal, transparent, and grassroots.

Compared to the DeFi in the bull market of 2020, this time the operations are simpler, the barriers are lower, and the capital requirements are smaller.

And more importantly, this time, as long as we participate early, we can leave the big funds far behind.

Therefore, from multiple angles, this opportunity is very favorable for us ordinary retail investors.

Of course, there is also a very big risk: that is, the liquidity of inscriptions is very poor, and once there is a sell-off, its price is likely to plummet in a short period of time. This is something we need to bear in mind and remind ourselves constantly, to ask ourselves if we can withstand the risks involved.

I estimate that this time the relay race of inscriptions will develop in the following order:

1 Early retail participants -> 2 Big funds -> 3 Late retail participants -> 4 Collapse -> 5 Blue chip inscription projects forged in the bear market

So, what stage are we in now?

I believe we are still in stage 1: Early retail participants, or at most the transition from 1 to stage 2: Big fund investors preparing or intending to enter.

Although the market has experienced a pullback these days, I think it’s a good thing. And I look forward to this pullback being deeper, longer, harsher, and more transparent.

On the one hand, for top projects, the more they withstand the market’s cruel torture, the more strength they will show in the future recovery. So as long as they endure these beatings, their consensus will become stronger and their future space will become bigger.

On the other hand, this pullback brings rare opportunities for investors who are interested in exploring this field to learn and research. Those who can bear the risks and have the intention can seize the time to study and research, strive to become experts in a specific area, find their own opportunities in the market, and patiently wait for the market to recover, which may lead to good returns.

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