The correlation between the crypto industry and the US dollar trend

1. The founder of ICP tweeted that artificial intelligence AI is running on the blockchain ICP. Does decentralized AI have potential?

ICP is a very old project, but there has been almost no progress over the years, but many people are still concerned about it. I stopped paying attention to this project a long time ago.

As for decentralized AI, I have always believed that it is necessary, but there are not many projects that are really moving in this direction.

I recently read an article online that mentioned that the current design architecture of NVIDIA GPUs makes it difficult for devices built on them to be distributed and run at locations that are too far apart physically. Only centralized operation can bring out the performance and advantages of its GPU computing power.

If this is true, then the decentralization of computing power that I imagine may be difficult to achieve in the short term. To truly achieve decentralized computing power, AI may have to redesign a chip so that it can transcend the current physical distance limitations.

2. I bought XX BRC20 SHIB inscriptions. Compared with the current SHIB on Ethereum, the market value of SHIB inscriptions is much lower. Does SHIB inscriptions have any potential in the future?

In the crypto ecosystem, generally speaking, the potential for copycats is quite limited.

Let’s take meme coins and NFT, two sub-sectors in this ecosystem that are most susceptible to emotional fluctuations, as examples. Almost all successful cases have imitations: CryptoPunk’s imitations, BoredApe’s imitations, MEME’s imitations…

No matter how these imitations performed when they first debuted, looking at them today, almost none of them still have any vitality.

So I never follow the imitation disk.

3. If the dollar collapses...

We often hear statements like "dollar collapse" or "American decline" in various domestic media.

If we hope to obtain useful information from these statements to guide our investment, we still need to distinguish the logic and ideas behind them to see whether it is logical deduction or emotional venting.

Only information derived from logical deduction without emotions can be helpful to our investment. Because as investors, if we cannot be objective and rational, we will be beaten by the market.

From the perspective of historical trends, the national strength of the United States has indeed been on a downward trend since it reached its peak after the collapse of the Soviet Union. However, in the foreseeable future, no matter how much its national strength declines, it will still be difficult to shake its position in the world, especially its leading position in the field of science and technology.

The same goes for the so-called “dollar crash.”

If we only look at the US dollar itself, the collapse of the Bretton Woods system in the 1970s and the decoupling of the US dollar from gold do show that the status of the US dollar has been shaken. However, that shake is only relative to gold, but relative to other currencies, its strong and monopolistic position has not changed at all.

Neither the German Mark, the Japanese yen, nor the euro, which rose for a time, could challenge the status of the US dollar, and it turned out that they were even inferior to the US dollar.

Therefore, we still live in the US dollar system today, and no matter how much the US dollar declines in the foreseeable future, this situation is unlikely to change radically.

This is not only true for maintaining its existing status, but the dollar's penetration into emerging areas is also difficult for other currencies to achieve.

Those of us who are in the crypto world should have a more personal experience of this.

Who was the earliest dominant force in the crypto ecosystem? What was the dominant currency? Which group held the pricing power? How did the US dollar gradually dominate the market and how did the Americans finally get the pricing power?

Competition in human society is often based on relative strength, not absolute strength. Often, winning a competition is not necessarily because you are strong, but because your opponent is weaker.

If the "dollar collapses" one day, I guess the assets priced in dollars will most likely still be able to withstand the storm, and Americans will still have the pricing power.

Even today, the safe-haven asset gold and risky asset Bitcoin are all priced in US dollars. This in itself speaks volumes.

Since the United States' position in cutting-edge and monetary fields is difficult to shake, it means that all future investments, especially investments in cutting-edge fields, will still be affected by U.S. policies and the trend of the U.S. dollar.

This fact is unlikely to change within the lifetime of our generation.