Wu Jihan's latest speech: Analysis of the market, space and time factors affecting the marketability of Bitcoin

This article is intended to convey more market information and does not constitute any investment advice.

The content comes from the latest lectures by the bitland mainland co-founder Wu Jiehan at the Macau Station of the "Mars University Global Blockchain Course Summer Class" at the end of August 2019. In the course, Wu Jihan systematically analyzed the rise of Bitcoin and the PoW consensus mechanism, explained the reasons for the high volatility of Bitcoin prices from an economic perspective, and comprehensively reviewed the history of Bitcoin expansion, the first expansion of disputes. In response, he also analyzed the nature of the venture capital boom in the encrypted digital currency market from the perspective of the history of roasting cats, the rise of Ethereum, and the fall of ICO.

The following is the essence of the lecture notes:

• The overlord of the bank blockchain! JPMorgan blockchain network IIN will absorb 400 banks worldwide by the end of the year
• The oversold rebound is not strong, BTC is about to face the direction
• Non-serious discussion on blockchain finance from "self-tearing" (1): ideal and reality

Why is Bitcoin rising rapidly in 10 years?

Before discussing the discussion of blockchains and encrypted digital currencies, let me talk about the decentralized financial and monetary system formation and the dynamic process of formation. The understanding based on the principle and logic level is not only very helpful for us to understand the formation of bitcoin, but also allows us to have a more forward-looking grasp of the trend when faced with industrial changes in the future.

How was the currency born before Bitcoin was born?

I personally agree with the Austrian School of Economics on the theory of the birth of the monetary system based on "barter exchange." Each commodity has its own "marketability", and the marketable goods will gradually evolve into money, and the marketable weak goods will gradually withdraw from the role of money.

In addition to the marketability, what are the basic attributes of the human and material world, which played a key role in the birth of the currency? There are two basic points that must be grasped.

First, the ability of individuals to process and exchange information is extremely limited. In a barter market, it is difficult for individuals to know the full picture of the market in a timely manner. Not only is the cost of information search high, but the process of processing information is also time consuming. Information is usually hidden in different market entities, and this type of information is called "signal" in economics.

Second, individual preferences are variable and unpredictable. This is an important reason for the failure of the planned economy. The former Soviet Union once had a planning economic committee, and the method of commanding the economy was very simple. For example, a region that produces wheat and grapes, which meets the wheat and grape yield indicators, does not consider the region's long history, cultural and artistic prosperity, and is very suitable for the development of tourism. Culture, art, and tourism are options to meet consumers' unique preferences. It is difficult for organizations such as the Planning and Economic Commission to find such special preferences and adjust their economic development plans accordingly.

In summary, when the information is opaque, each person's preferences are inconsistent, and the pressure of barter exchange will be very large. At this time, there will be a marketable product that will eventually become a “currency”, which can satisfy the needs of people's convenience and improve transaction efficiency. In turn, the creation of “currency” has also contributed to the better operation of the entire economic activity. If anyone in the market does not accept this "currency", then his economic activities will be greatly reduced.

Next, let's try to analyze: Why is the currency that ultimately wins a strong marketability? What are the aspects of marketability?

Carl Menger, the founder of the Austrian economics school, was the inventor of the "marketability" theory. He divided the marketability into three factors: market, space and time. I combine these three factors to explain why Bitcoin can rise from scratch in 10 years.

First, the market factor.

There are several conditions that a product needs to meet market factors:

First, there are many people who like this kind of goods; second, people who like this kind of goods must have strong purchasing power; third, goods are scarce;

Fourth, the goods are easy to divide;

Fifth, there are markets with good liquidity, including those built for speculative trading.

The above five conditions, bitcoin are more consistent.

The Internet has expanded the size of the population to understand Bitcoin; the higher income of “Code Farmers” has further magnified its influence on bitcoin; the limited supply of 21 million defines the scarcity of Bitcoin; the smallest bitcoin The unit is eighth after the decimal point (that is, 1 bitcoin can be split up to 1 million copies), which provides strong severability and eliminates barriers to trading activities; Bitcoin transactions From the initial focus on the Mt.Gox exchange in Japan (Editor's note: it is now bankrupt), and now the exchanges around the world, the market is very liquid.

This series of economic and social factors determines the market acceptance of Bitcoin is very high, which makes it easy to exchange, and the rights can be guaranteed.

Second, the spatial factor.

The spatial factor means that in the range where a commodity can be traded, people have the will to accept and consume the commodity; at the same time, the transportation cost is low, that is, the loss of the commodity in the process of transferring from one region to another. To be low. Bitcoin just happens to meet this condition.

However, Bitcoin still lacks a more prosperous and convenient trade market. In international trade, more than 70% of contracts are settled in US dollars, more than 50% of payments are done in US dollars, and Bitcoin's main trade target is other types of encrypted assets.

So, is Bitcoin useful in international trade? From the actual experience, the answer is yes. For example, Bitcoin can reduce the limits of capital controls and better serve to pay wages across borders.

Third, the time factor.

The time factor is related to whether the commodity has a lasting value in people's psychological expectations. "Diamonds are long-lasting, a eternal rumor" is what this means. But diamonds are hard to be money, why is this? Those who know a little about it know that De Beers' monopoly on the diamond industry artificially creates the scarcity of diamonds. Once this monopoly is difficult to maintain, the value of diamonds is difficult to maintain.

Another dimension of understanding the time factor is whether the cost of conserving goods is low enough to generate interest, and whether the market has a strong cyclical demand for such goods. If the periodicity is too strong, it is also difficult to become a currency. In addition, from a social and political perspective, will this commodity face a cyclical ban. For example, if the government prohibits private people from holding gold and prohibits private use of gold for trade settlement, gold cannot maintain its monetary status. Even if the ban does not actually happen, as long as this expectation is strong and the future may happen, the monetary status of gold will also be challenged.

In the history of mankind, many times and in the region, gold and silver eventually became the winner in the currency competition; but in some time and region, such as the Chinese paper money in the Song Dynasty, the credit currency was also born and widely used. Credit currency generally uses the mandatory force of the government to solve the problem of the marketability of money.

In general, the dominant currency is formed in dynamic competition. In the short term, its status is very strong, and even the monetary authorities will use its detached status to maintain its dominant position; in the short term, even if super inflation occurs, the dominant currency is difficult to circumvent; but in the long run, its The status is challenged, and the monetary policy irresponsible currency eventually disappears.

Bitcoin is a new species born under new technological conditions and new economic conditions. It is a rise in the long-term dynamic competition process and has strong marketability. As the size of the recipient population continues to expand, its monetary nature will become stronger and stronger. Coupled with the scarcity of the total amount of Bitcoin, it must have a huge appreciation space.

Why is the PoW consensus mechanism critical?

The birth of Bitcoin dates back to the early cryptographic punk movement, an inevitable outcome of the development of cryptography that emerged during World War II. Since cryptography played a key role in World War II, after the war, this technology was strictly controlled by the US government, but the spontaneous resistance of the people has always existed.

In response to the demand for government surveillance and surveillance activities, many people began to carry out spontaneous seminars in spite of government bans. Finally, they also found a potential solution from the cryptography system that could be used to evade surveillance and control. Later, the folk spontaneous cryptography research combined with the later open source software movement gradually formed the password punk movement. Today, common HTTPS (encrypted hypertext transfer protocol) and PGP (an open source encrypted communication protocol) benefit from password punk movement.

Around the 1980s, after the cryptographic punks solved the problem of communication encryption, they turned their attention to the cash and currency system. Unfortunately, the trial has not been successful. The main problem is, if you adopt a decentralized solution, how to solve the "double flower" problem? When a sum of money can be spent twice, fraud can easily occur. If a centralized solution is adopted, although the "double flower" problem has been solved, how can the problem of money laundering be solved under the liberalism?

Until 2008, Nakamoto published a paper on "Bitcoin: A Peer-to-Peer Electronic Cash System" in the Password Punk Mail Group, and proposed some key inventions, such as the PoW consensus mechanism, to effectively solve the problems that the predecessors could not solve. The problem.

Although PoW is not a fresh concept, its application in Bitcoin is very clever. If Bitcoin is viewed as a ledger, PoW stipulates that miners who are the first to find an answer can obtain billing rights and that the books are connected in series.

It is easy to understand the principle of "riding the seal" in the document in Lenovo's reality. A person wants to check if the file is complete, he can see if the sewing stamp is complete. If someone pulls a page out of the file, the riding seal is incomplete. The blockchain is roughly equivalent to the principle of riding a seam. Its technical features ensure that you can easily find out whether the books are complete or not altered by others without checking the accounts. At the same time, in the process of time lapse, the PoW mechanism ensures that accounting is done through competition, and there is an independent timestamp server that does not require third-party monitoring, which makes it difficult for anyone to pay for it. Tampering with the books in an effort–this means that the double-payment problem can be effectively addressed under decentralized conditions.

However, the cost of PoW is very high. Like the early mining, the CPU of the ordinary computer can be supported, but as the difficulty of mining increases, not only the CPU is difficult to support, but even the GPU (graphics processor) and FPGA (field programmable gate array) chips are gradually outdated. ASIC (Application Specific Integrated Circuit) chips have become mainstream. This will result in you constantly updating the mining equipment, and after updating the equipment, you will have to face high electricity costs. At the same time, PoW's latency problem has not been solved – if you want to make a second-level payment, it takes 10 minutes for Bitcoin to identify a block, which is certainly unrealistic.

Although the cost of PoW is very high, it has created a "fair" feeling for a long time. I believe that the top leaders and bosses of many companies will find that fairness is particularly difficult to achieve in the process of managing employees. Everyone will think that they are the most important and pay the most.

How does PoW create a sense of fairness? Take mining, as long as you buy equipment, even power on, you can participate in the Bitcoin mining system, and then mine to earn money, the feeling of fairness is coming. The cost of mining is related to the shortcomings of PoW mentioned above. To dig into Bitcoin, you have to pay a lot, which creates a psychological value anchoring – what is value anchoring?

It is essentially a psychology in which people hate loss. If a thing makes you pay a lot of money, you are not willing to sell at a price lower than the cost, which is "reluctant to sell."

Another meaning of fairness stems from “openness”. You can buy and sell mining machines to participate in mining, and even participate in mining equipment manufacturing and code programming. These thresholds are relatively low and do not require government approval. Therefore, the entire Bitcoin mining is an open system.

Without such an open system, there would be many problems. For example, XRP (Ripple Coin), because it does not use the PoW mechanism, early to attract users through airdrops, allowing users to snatch airdrops, resulting in a large number of wool parties, rather than real users. The wool party will not cherish the XRP. After they get the XRP, the first thing that comes to mind is the sell-off. Another example is the currency of some PoS mechanisms. Who is the beneficiary? Those who join first are the ones who run the main node. This is the same as the high-level caste Brahman in the Indian caste system, where beneficiaries can always get free interest and earn almost no cost.

And these encrypted digital currencies and bitcoin are essentially different. Bitcoin miners spend a lot of money to buy machines, pay for electricity, and work hard to mine, so he will build the concept of cost and will be reluctant to sell.

Bitcoin once occupied a leading share of computing power in bitcoin mining, but the computing power is dynamic, and we are also worried every day, both day and night, because Bitcoin is an open and challenging system. This is the beauty of PoW.

An implicit advantage of PoW is that it creates a separate system that can stand on its own. It doesn't need to connect to Microsoft, Apple, or Google's time server to know the order in which transactions occur.

Finally, from a technical point of view, PoW is also the safest mechanism, although it also has a 51% attack controversy.

Why is the volatility of bitcoin prices very high?

Security, scalability, and decentralization constitute the "impossible triangle" of the blockchain, but there is also a very famous triangle theory in the international trade and foreign exchange market – "Mundell impossible triangle" It means that the three goals of free flow of capital, independence of monetary policy, and stability of exchange rate cannot be achieved at the same time. To achieve two of these goals, another goal must be abandoned.

Hong Kong adopts the currency board system, and the Hong Kong dollar strictly anchors the US dollar. Therefore, it has abandoned the independence of monetary policy, but achieved the free flow of capital and the stability of the exchange rate. The renminbi is subject to capital control. If you are a business and want to remit the renminbi, you need to provide proof of use to the foreign exchange administration through commercial banks. If you are a natural person, you will check whether your quota has been used up. Is the use reasonable?

Therefore, China's central bank has adopted some restrictions on the free flow of capital to ensure the independence of monetary policy and the stability of the RMB exchange rate. It is precisely because of this that we were able to achieve the economic recovery by implementing large-scale monetary policy stimulus during the 2008 financial crisis, which in turn affected and promoted the recovery of Europe and the United States.

It can be said that foreign exchange control is a very important monetary policy tool in China. So what do we think about the choice of bitcoin?

It is clear that Bitcoin has an independent monetary policy system with 21 million total supplies, halving production every four years. Bitcoin prices have experienced several major declines in history. When the price collapsed, some people asked, can we reduce supply? The answer is no, Bitcoin does not change the output setting as prices fluctuate. The high price volatility, explained from the perspective of Mundell's impossible triangle, is that Bitcoin has given up the goal of exchange rate stability.

Bitcoin hard forks

First of all, I give a conclusion: Bitcoin hard fork is a natural phenomenon, not a personal subjective will.

I personally stood on the vent. It seems to be the leader of the times, but in fact it is nothing but a change, a revolution, an idolized understanding of collective action when the process comes. Some people who control Bitcoin hard forked out of the BCH called "Knocking cold coins", I am very embarrassed, do not know how to explain. But with the opportunity of Mars University, I will start to talk about it, in fact, it is related to the governance structure of the blockchain world.

The so-called governance structure is a rule for a group to decide what to do in the future, what to do or not to do, what to do when doing what, and who to decide. How is the governance structure of Bitcoin formed?

We know that the purchase behavior of Bitcoin users supports the value of Bitcoin, but if it is to become a currency, it is determined by "marketability." There are about 20 to 40 million people in the world who buy and sell bitcoin. They are distributed in more than 100 countries around the world, with different languages ​​and cultures. Most people lack professional knowledge. Therefore, it is very difficult for this huge group to take effective action. Moreover, when the crowd is large enough, the public behavior pattern is easily affected by propaganda, and there will be a phenomenon of following the orthodoxy.

Related to following orthodoxy is "imaginary reality." Yuval Hulali mentioned Peugeot in the Brief History of Humanity. He asked, is a large multinational company like the logo car real? Maybe you will say that a big company, so many people, of course, is "existent." But if one day signs the car bankrupt, the company is forced to disband. Although the company's factory buildings, production lines, employees and cars still exist, the sign company disappears out of thin air – in fact, the logo company itself has no substantive connection with the real world. .

According to this statement, the logo car is an illusory thing and does not exist. Yuval went on to say that Peugeot is an "imaginary reality" that means that everyone believes in something, and as long as this common belief still exists, power is enough to influence the world.

Similarly, there is also a follow-up in the open source world (almost all blockchain projects, including Bitcoin, are open source). Developers of early open source software had almost no revenue, so what are the main motivations for them to insist on writing code? I summed it up as "self-realization." Realizing self through creation, whether it is a sense of accomplishment, self-esteem or glory, or external respect, is a very good personal feeling. In general, the founder of open source software is a person, he has a strong authority among many developers, often a word. For example, the founder of Bitcoin is Nakamoto, and the founder of Ethereum is Vitalik. If the founder disappears or abdicates, suddenly loses contact, and voluntarily gives up, there will be a next person to take over, or form a committee to take over, but in either case, the authority is diminishing. In this case, it is easy to split – the splitting phenomenon in open source software abounds. Some are very successful, and some are more successful.

Let's talk about Bitcoin again. Bitcoin was almost worthless in the early days. If someone spawned a deal, he could make the entire Bitcoin blockchain network paralyzed without spending money. How did Satoshi Nakamoto solve this problem? He quietly added a block size limit to Bitcoin, setting the upper limit to 1M. When adding this code, Bitcoin was almost independently maintained by Nakamoto. Until October 3, 2010, a core developer of Bitcoin, Jeff Garzik, discovered this problem. He believes that 1M is limited in capacity and recommends raising this limit. This led to a long discussion at the time, but Nakamoto's point of view is that there is no need to rush to modify it now, and when the Bitcoin network needs it in the future, it will be changed. As the founder of Bitcoin, Nakamoto's authority is very strong, and it is also reasonable to put aside the problem.

But then there have been some changes in the Bitcoin community. At the end of 2010, Nakamoto gradually faded out of development activities, and before that, he handed Github authority to the then chief developer Gavin Andresen, and handed over the management rights of some important Bitcoin website forums such as Bitcointalk.org to Theymos. In 2014, Gavin Andresen also gave up the identity and authority of the lead developer and handed it over to the Dutchman Wladimir van der Laan. Wladimir is equivalent to the third generation of Bitcoin, which we call "Core". At this time, Bitcoin has also become the governance structure of the committee.

Later, there were some important things happening. In August 2014, core developer Gregory Maxwell, as well as entrepreneur and investor Austin Hill, core developers Pieter Wuille and Matt Corallo, co-founded bitcoin technology company Blockstream. The company focuses on sidechain technology. In the case of limited capacity expansion of Bitcoin, some transactions can be moved to the side chain, keeping the main chain simple and secure, without having to bear a lot of upgrade risks, and side chain innovations are also available. Helping the diversification of market agreements. But unfortunately, the side chain has not been realized today, and there is still no well-developed side chain ecology. The technical difficulties are omitted first. The more important reason is that the expansion of Bitcoin's chain cannot support the entire commercial application on the chain.

This may lead to a kind of motivation. In order to make the problem solved more effective and valuable, first create a problem, such as creating a reality that cannot be expanded. Liu Chang, a professor at Chongqing Technology and Business University, wrote a very systematic introduction to the brief history of Bitcoin expansion and restored the situation at that time. As a participant in Bitcoin expansion, I feel interesting about this process, not anger and anger. In general, the entire expansion process is divided into two modes and two phases.

The first model is that the community is afraid of splitting and the consensus is difficult to achieve.

Any group will be scared when faced with potential splitting pressures, and most people want to agree – this "can't split" fear will lead to a result, and any change must be agreed upon in the process of Bitcoin expansion. In the middle, there has been a debate over the definition of consensus. At the same time, there will be hardliners who are unwilling to make any changes. They constitute a group that refuses to expand and upgrade. Although this group may be small, they have a disproportionate veto and can control more people through operations, making the process lengthy and complex.

The second mode is derived from the first model. The party that supports the expansion will be compromised . Let’s say that the expansion of 20M will not work? If not, can 8M not work? Can't 2M work? Or not. Why is there a situation where the expansion will be compromised? Because you want to seek consensus. This model is inevitable, and anyone who wants to take the initiative to make a change must be in a passive position in the negotiations.

The entire expansion process can be divided into two phases, starting from 2013. The first phase is 2013~2016, and the second phase begins at the end of 2016.

The first stage is the stage of free discussion by developers, full of technical language discussions, and mainly internal debates among developers, so it is not noticed and reported by the mass media. The second phase is the negotiation between the developer and the miners group, which gradually evolved into a confrontational situation. The miners group led by me and Bitland advocated expansion, and the developer "Core" opposed expansion.

The first phase ended with the failure of the expansion party. Bitcoin's second-generation core developers have left and fallen, and some of the rising stars that followed have not long-term thoughts and experience on Bitcoin's complex code and protocols, which has led to the expansion of the prestige and actual development capabilities. I can describe it as "a day is not as good as a day." At the same time, the developers in the "Core" camp have been developing from 2010 to 2016, spending a lot of time on the development and maintenance of the Bitcoin protocol. After the establishment of Blockstream, they have devoted themselves and accumulated more than two years of experience, so the thinking is very deep and the experience is very strong. In this case, the expansion party must be a one-sided failure.

In the second phase, as the developers of the expansion team failed in the struggle, the expansion team turned to Chinese miners for help. Chinese miners, including me and Bitland, stood out very bloody and slowly became popular – I became the one in the crowd who wanted to control bitcoin. However, the miners and "Core" have several shortcomings in the negotiation process:

First, miners do not have the objective ability and credibility to maintain and upgrade Bitcoin agreements and software. The earliest role of bitcoin developers and miners is one, and Nakamoto is also a miner. Later, the rise of professional miners like roast cats and bitter continents led to the separation of miners and developers.

Second, the miners do not grasp the name of justice. The name of justice needs to be shaped by the media. The key discussion places and communities of Bitcoin are controlled by “Core”. But what happened at the crucial point when the bull market was just opened in 2016? A large number of new users have flooded in, and the "Core" camp has blocked the speech, so the information that new users are exposed to is all against expansion. At the same time, the expansion team made a lot of mistakes in technology and publicity. Before 2016, the results of the forum statistics showed that 80% of the community participants supported the expansion. By 2017, most people believed that it was just right to keep the block at a sufficiently small level.

Third, at that time, almost all of the mining equipment was in China, and 60% or 70% of the computing power was concentrated in China. China is a less trusted cultural and psychological stereotype in the world, "Chinese" Identity is attacked in the community.

The two modes and two phases of expansion mean that the Bitcoin community has split when BCH has not yet been born. The party that mastered the media platform blocked the speech and led to the disappearance of the unified discussion platform. A large number of banned remarks began to enter alternative discussion forums, and there were scenes in which the two factions spoke. The division of the community is the root cause of the final bitcoin fork.

From "bigger roast cat" to "better Ethereum", see the essence of the encryption risk investment boom

In the history of Bitcoin development, mining is the earliest market activity. It brings the prosperity of hardware, investment, and mining pools. The roar of the mining machine also allows investors to experience that Bitcoin is not so virtual, it is a real existence.

In this historical process, you can't help but mention "roasting cats." "Baked Cat" graduated from the Junior College of China University of Science and Technology. In 2012, he and his classmates issued stocks with a crowdfunding of 600,000 yuan. At that time, the company was valued at about 1 million yuan. They used the money to invest in SMIC's 130-nanometer chips. As it turns out, this investment is very worthwhile. By July 2013, the “roasted cat” stock had risen to 5 bitcoins/shares, compared to the crowdfunding price of 0.1 bitcoins. More than 50 times, because the price of Bitcoin has also increased more than 10 times in the same period, the return value of the "roasted cat" company has reached an astonishing 500 times, and the people who participated in the "roasted cat" investment have received a lucrative return.

I am also one of the investors in the "roasted cat". One conclusion I got from this incident is that all investment activities involve risks. What is important? The market doesn't care how many investors you make, but what is important is how many investors you have earned.

The same is true for Nasdaq. After the Internet bubble burst in 2000, only a few companies survived, but Nasdaq is still great today. Why? It gave birth to a truly great business. In contrast, why did the Hong Kong Growth Enterprise Market fail? It is because it hardly runs out of any good company. Blockchain financial markets are in the ascendant, and failure does not matter, but entrepreneurs must think systematically. How do you ensure that the market and ecology you operate are successful?

You are not obligated to ensure everyone's success and to ensure that everyone makes money, but you must ensure that someone is successful and someone makes money. This is very important, because the winners will bring a wave of market enthusiasm, which will lead to the "bigger roast cat." It is precisely because of the myth of "roasted cats" from 2012 to 2013 that there has been a wave of events in the market for the issuance of shares in mining companies, and there are also 60 or 70 cases. Everyone wants to be a "bigger roast cat", but most of them have failed. This also directly led to the depression of the entire Bitcoin community in 2014.

After a business model has achieved great success, it will trigger a group of followers and imitators. For example, in the early years of group buying mode, after the rise of Groupon in the United States, China has produced a number of group buying websites, which has created a situation of “thousands of groups”. Finally, the US group won. Weibo, taxi, shared bicycles… This story is repeated again and again.

The important inspiration given by these stories is that capital markets can easily invest more in the face of successful examples. Although the "bigger roast cat" wave was shattered in 2014, the "roasted cat" story did not end. Where does the new story start? Ethereum.

When the Bitcoin community faced the “innovator's dilemma” (and recommended everyone to read the book of the same name), Ethereum founder Vitalik Buterlin put forward the idea of ​​a smart contract, which led to the scent of sensitive investors to follow. He made a speech full of code in Silicon Valley. The PPT demonstration process is all code. After the speech, the investors are very excited. This is the future! Subsequently, Ethereum completed a $20 million fundraising through ICO, setting a miracle for fundraising.

Why is Ethereum ICO successful? It should be said that it is a replica of the "roasted cat" story. In the case of technical logic and complete stories, investors are willing to take a chance. Wanxiang Xiaofeng gave him support during the most difficult time of Vitalik Buterlin, and thus today's Ethereum. In this sense, Xiao Feng made a vital contribution to the success of Ethereum. Of course, he also achieved great returns from the success of Ethereum.

Then the 2016 and 2017 ICO booms were the result of pursuing “Better Ethereum” (Grin's story is different, it pursues “better bitcoin”), high TPS, shards, points Layers, cross-chains… The concepts that are very well known in the industry today serve the theme of “Better Ethereum”.

Looking back at history, you will find that it is because of the PoW mechanism that the Bitcoin community will have a relatively healthy capital market in the early days and be able to breed successful cases such as roasting cats; this successful case inspired later larger investments. Speculative activities can support the birth of Ethereum; the success of Ethereum brings about a major outbreak of blockchain agreement development financing activities.

Even if capital is moving, how many public chains can become "better Ethereum"? How many "better Ethereum" does the world need? This question may take another 3 to 5 years to get a better answer.

Wen | Wu Jihan

Produced | Mars Financial APP (ID: hxcj24h)

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