How do die-hard fans view the value of investing in blockchain products?

If you take a look at the Bitcoin and BitShares communities, you will find many die-hards who are happy to do it regardless of whether they make a profit or a loss, which is very different from the behavior of speculators. Speculators laugh at them, and they also fall into depression from time to time. "Those who are loyal, persistent, and so-called unyielding will lose everything, while those who are flexible and rebellious will laugh heartily in the splendor of summer." However, after waking up, they are still full of fighting spirit.

In the current economic downturn, winter supplies have not yet been prepared, and talking about investment seems a bit incompatible with the overall environment. However, blockchain diehards can be willful.

What is value investing?

Conservatives would say it is interest-bearing. But this cannot explain the phenomenon that the value of the Internet is determined by the number of users. If we simply and crudely label it a bubble, it will still require a long historical period of testing, and it will ignore the factors of structural evolution of human society.

I think that value investing can be roughly understood as the cyclical process of eggs laying chickens and chickens laying eggs. The eggs and chickens here represent different value factors. The focus of this concept is that it is cyclical and benign. MLM and Ponzi schemes are not included in this category because they cannot be virtuous cycles.

I believe that the subject of investment activities is living beings (people), and the object of investment is still living beings or pseudo-living beings. Activities separated from the life system do not exist, they are just movements, such as the breeze and the flow of water.

Eggs and chickens are living things; gold, silver, crude oil, stamps, etc. are primitive pseudo-life forms driven by human activities. When human activities are upgraded to a certain stage, they have investment value for talents; energy carriers such as batteries are intermediate pseudo-life forms; and the Internet is an advanced pseudo-life form.

The Internet can be divided into different evolutionary stages: traditional networks (low distribution), decentralized networks (represented by blockchain), and artificial intelligence networks.

If the above statement is true, then there will be more basis for value investment in blockchain products. You can refer to the experience of plantation and breeding operators for the basis. Because on a large scale, everyone is investing in living organisms.

2016 is predicted to be the turning point of blockchain products. 2015 was the first year of blockchain, and the exposure of blockchain technology overshadowed that of Bitcoin, the originator of blockchain technology. At present, a number of competing coins have broken away from the trend of Bitcoin and have made independent turning points. In the eyes of speculators, this wave of market will be short-lived, but in the eyes of investors, they are looking forward to a new era.

What is the value of blockchain products?

Under the premise that the number of users determines the value, it can be broken down into:

(1) Community value of core participants

For coins with small market capitalization, one dealer can drive its value growth, and the role of the community is not obvious; for coins with large market capitalization, consensus must be formed by large holders, and at this time, community building is very necessary. The BitShares community is a model of an open and transparent community.

(2) Application value of blockchain

Every innovative blockchain product has its own unique application field. The core competitiveness of a coin is that it can play a disruptive role in a certain industry. For example, Bitcoin disrupts payment; BitShares disrupts exchanges; Ripple disrupts settlement; Ethereum disrupts centralized networks. And so on. These application values ​​are easily equated with investment value, which works in a bull market, but will cause trouble in a bear market. For example, the application of BitShares is becoming more and more mature, so why is its market value falling?

(3) Depth and breadth of ecological expansion

The community and application value of a coin dominate the ecological expansion of the coin. In the face of competition from similar blockchain products, first-mover advantage and eco-friendly loyalty determine the depth and breadth of ecological expansion, which is proportional to its value. BitShares' current ecological expansion focuses on depth. With the efforts of community elites, decentralized exchanges continue to expand; new chains derived from it continue to produce new results, and these results all belong to the BitShares community. Bitcoin's current ecological expansion focuses on breadth. Due to the limitations of technical protocols, there is no breakthrough in depth. Ethereum is still intensively developing protocols, and the prospect of ecological expansion has not yet taken shape.

The value investment in the Internet field is measured by the number of users on the surface, but the underlying judgment is the ecosystem. Diehards pay the price for the trial and error of the ecosystem, but they will eventually gain value growth. As a representative of advanced pseudo-life, the potential of blockchain cannot be realized without diehards.

Author: ebit (BitShares blockchain operator)