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ETH is the so-called Ethereum, but most people don’t actually understand Ethereum. They are more concerned about the trading product “Ether” and its price. So, if you want to know more about what Ethereum is, there is a 6,000-word article “What’s Behind the Crazy Ethereum?” at the end of this article. This article explains what Ethereum is in plain language and makes a judgment on the future of Ethereum. So far, I still think the market is in line with my expectations.
Simply put, Ethereum is a "decentralized blockchain application" development platform. Many people don't understand this sentence, but it's actually very simple. Ethereum is a development platform on the blockchain, similar to the Android development platform, but due to the distributed computing characteristics of Ethereum, any application developed on this platform must comply with decentralized logic, and Ethereum is the main liquid asset on this platform. Any application and calculation requires the consumption of Ethereum or gas converted from Ethereum. Therefore, Ethereum is an application asset on the development platform and a liquid asset of the Ethereum system.
Now let’s talk about DAO. Actually, what got into trouble this time was THE DAO, not DAO. DAO is a general term, and its full name is “Decentralized Autonomous Organization”. But because THE DAO is so famous, many people are talking about DAO when they are actually THE DAO. But this is wrong, just like confusing Google with search. Google is just one of the search engines, and THE DAO is also a variety of DAO.
DGD is essentially a DAO. The full name of DGD is DigixDAO, but the logic and code of this DAO are completely different from those of THE DAO. The official explanation of DGD is as follows:
DigixDAO is a smart contract suite created by a decentralized autonomous organization (DAO) and deployed on the blockchain by DigixGlobal, with the goal of governing and building a 21st century Ethereum gold-based financial platform with the community. As an open, transparent organization, it will set such a standard, using the power of Ethereum smart contracts, DigixDAO token holders can directly influence decisions that are dedicated to the growth and promotion of the DigixCore gold platform. In return, token holders are rewarded with Ethereum platform Digix gold token transaction fees.
Therefore, THE DAO and DigixDAO are in a parallel relationship, both are projects on the ETH platform, but due to different business logic, they are actually unrelated. The relationship between them is like Didi Taxi and Meituan Takeout in the same mobile phone, except that they are both developed on the same platform.
Let's talk about the market. Everyone likes to watch it. Although this may put me in a situation of jumping into the gods, with such a large fluctuation, if I don't express my views, many friends will think that I am too conservative. But I declare that the following is only my personal opinion and I will not bear any responsibility for the investment results.
Bitcoin plummeted by 800 yuan, which seems scary, but we need to analyze the background of this plunge:
1. Bitcoin started at 3,000 and has risen to 5,100, an increase of 67%. The total increase has been too amazing, accumulating a large number of profitable chips, and the historical locked-in chips also need to be released. Therefore, this plunge can be judged as a reasonable adjustment. It rose by 67% and fell by 18%, losing 38% of the increase. Therefore, it is said that a round of market has ended. This judgment is a bit arbitrary. The degree of adjustment will still be used to judge the market outlook. However, in the short term, it should be a weak consolidation pattern. There is no definite method to judge when the consolidation will end.
2. The attack on DAO was like a fire in the city gate, which caused doubts about the prices of blockchain assets and caused other varieties to plummet. The hardest hit was Ethereum, which plummeted by 50%; followed by DGD, which fell by 30%; and then Bitcoin. The aftermath of DAO finally affected this completely unrelated asset.
3. Bitfinex was inaccessible for several hours in the morning and afternoon of June 21st, Beijing time. As an international heavyweight trading platform, the long-term suspension of service caused a certain panic and triggered a new round of sell-offs. Although they later issued an announcement on social media, the market panic did not end and no obvious signs of a rebound were seen.
Comprehensive judgment:
Bitcoin is still bullish in the long run. Users who hold spot and do not care about short-term gains can look at the long term. What if it reaches 18,000? However, this also has a time cost. If you don’t have the idea of holding it for 3 years and want to participate in chasing ups and downs to get short-term gains, you can only balance the profits and losses yourself.
THE DAO has problems, and how to solve it is critical to the future of Ethereum, but I am still optimistic about Ethereum. At least at the current price, it is irrational to continue to sell blindly. Once the market recovers, the rise will be fast.
This round of decline of DGD was completely a mistake. Some people actually thought that DGD was THE DAO, and then they panicked and dumped the market. I am really speechless.
This variety is still in its early stages and requires a price discovery phase. After DGX goes online and clarifies the dividend distribution method, it will attract more attention. Before the market picks up, prices between 60-120 are normal. This is a normal fluctuation. To hold this variety, you need to be patient and don't care too much about short-term prices. In the future, the price of this variety will exceed that of Ethereum. After all, a 2 million plate and a reliable commercial project are still rare in the market. When I recommended this variety to my friends, I said it was a variety for retirement configuration, and a short-term explosion is just a wishful thinking. |
