What is the Bitcoin surge waiting for?

Chapter 0 Introduction

In 2013, the price of Bitcoin skyrocketed, reaching a peak of over 8,000 yuan, but the good times were short-lived, falling from 8,000 yuan to 1,000 yuan, and the prosperity was over. Many friends were trapped and left hanging. As the market continued to be sluggish, the prospects became increasingly pessimistic, many people left, and community elites quarreled constantly. Now, anyone who dares to post a post worth 100,000 dollars will be cursed like a troll army in the reply.

However, from 2014 to now, good news about Bitcoin has never stopped. Venture capital investment, government approval, acceptance by giants... but all of this seems to be useless, the price remains unchanged, crawling on the ground.

As someone who holds a large position in Bitcoin, I have to ask, why? Why hasn’t Bitcoin risen yet? What is it waiting for?

Chapter 1 The basis of Bitcoin price support

One of the most solid laws of economics is the law of supply and demand. Prices are determined by both supply and demand. The supply of Bitcoin is fixed, the total amount is limited, and the issuance rules are predictable. The key to driving up the price of Bitcoin is to find more and more audiences. How to make Bitcoin more and more used in people's lives? This is a key question.

Most of the Bitcoin audiences feel that "something is happening or will happen". But they don't know what it is. Because we all use analogies to think about problems, we always regard Bitcoin as a substitute for something we know, such as credit cards, Alipay, or at most gold. But in a mature market, it is almost impossible to change people's existing usage habits and face huge risks. Therefore, the success of Bitcoin must be due to the facilitator of some new things that we have not yet understood.

Bitcoin uses mathematics and computers to simulate some of the characteristics of gold, trying to establish a global credit. Currently, Bitcoin is indeed the third cross-national and cross-organization global credit in the world besides gold and the US dollar. This is likely to be the key factor supporting the current price.

The third largest global credit has been successfully established, but global trade is still mainly accounted for in US dollars. Under the rules of the game of major central banks around the world, the US dollar has become the biggest beneficiary of international trade. The natural physical properties of gold are a kind of transnational credit that can survive by breaking the rules of the central bank. The decentralized accounting rules of Bitcoin do have the value characteristics of gold and the accounting advantages of the central bank. In transnational trade, Bitcoin should bear more responsibilities. However, the current trend of three-way division of the world has not formed at all.

So, after having support, that is, having a foundation, what is the surge in Bitcoin waiting for?

Chapter 2: Satellite Internet allows people around the world to access the Internet with low barriers

Satellite internet represents the future, delivering high speeds anywhere without having to wait for your local phone company or cable provider to build out the necessary infrastructure for broadband access.

Last year, Facebook and McKinsey released a report stating that more than half of the world's 7 billion people have no access to the Internet, and an estimated 4.4 billion people are waiting for Internet signals.

The latest World Bank report claims that a quarter of the world's population cannot enjoy current banking services. This is because the cost of this service system is too high. We are used to using banks for free transfers and payments, and have forgotten that it costs money to build a bank building, install an ATM machine, and hire a teller... The banking system is so expensive that poor people can't even get in! These poor people total about 2 billion people!

Bitcoin's accounting costs are way, way lower than banks. Please stop saying mining costs are high, compared to banks, it's free.

The Bitcoin system can be accessed at no cost wherever there is Internet.

These poor places need the Internet and Bitcoin. There are 2 billion people out there who need you.

There is also a weird local area network on the earth - the Chinese Internet. Because of the existence of a firewall, Chinese people are actually using a discounted Internet. This discounted Internet makes our Internet speed slower and prevents us from accessing the world's most valuable websites. It also casts a shadow on Bitcoin's unimpeded access. Otherwise, there would be fewer arguments about block expansion this year. There are 1.3 billion people here waiting for the salvation of satellite Internet.

Currently, organizations that are keen on building satellite internet include Google, SpaceX, and Facebook. The most realistic project is the one proposed by Musk's SpaceX to launch 4,000 low-cost small satellites to provide global satellite internet coverage. This plan will begin testing next year, and if everything goes well, we will be able to use it in five years.

Chapter 3: Real-time language translation technology allows people around the world to conduct cross-border business with low barriers

Bitcoin is perfect as a global credit for conducting small cross-border businesses.

Cross-border trade settlement is now dominated by the US dollar and gold, which is controlled by large banks and major central banks. However, the trade volume is huge, and small trade is not valued. And small trade has a small market now, because the cost of cross-border trade is too high, and there is no profit for small trade.

The biggest obstacle to doing small business across borders is the language barrier. A waiter who sells specialty products on Taobao in China cannot do business with a Japanese who is salivating over the food. But if there is a Japanese-Chinese real-time translation robot, that would be the solution.

Just count the purchasing-agent posts in your WeChat Moments and you’ll know how big this business is.

Another obstacle to small-scale business is currency exchange. Taobao shop assistants don't accept Japanese yen, and the Japanese don't have RMB. This kind of money, including the courier fee, is only a few hundred yuan, and the bank will not help you exchange currency. Otherwise, you have to wait a week and add a 5% exchange fee.

What to do? This is where Bitcoin comes in.

The cost of cross-border express delivery has yet to be reduced, but the online digital market itself is a huge market. Before Bitcoin, it was difficult for a Chinese to ask an Indian to write a piece of code for you. With Bitcoin, there is still a lack of a real-time language translator.

Currently, Microsoft and Google are keen on real-time language translation technology. There are already products that can be used in simple environments. I believe that within 5 years, we can use Chinese to date French girls who speak French.

Chapter 4: Programmable load-bearing drones trigger border trade

First of all, let me state a value - smuggling is positive. It is a just thing to let people buy the products they need at the cheapest price, no matter where they are from. Tariffs hinder this justice. It must be mentioned that smuggling guns and drugs is evil. But it is not smuggling that is evil, but guns and drugs. The smugglers carrying milk powder and iPads back to the mainland from Hong Kong are the army of justice.

In Chapter 3, it is mentioned that the high cost of cross-border express delivery is the reason that hinders cross-border trade, and tariffs are an even bigger reason. God is caring for our people, the beauty of commerce is the gospel of mankind, and drones are the weapon of smugglers.

Governments can set up checkpoints at border crossings or ports and collect tariffs unjustly, but drones can be programmed to carry goods around any border.

Can you imagine using drones to deliver medicines from Hong Kong to Guangzhou? Can you imagine using drones to deliver fruits from the Philippines to Shenzhen? Can you imagine using drones to deliver smart chips from Taiwan to Xiamen? Can you imagine drones connecting Chinese businessmen with Indian businessmen across the Himalayas?

Please don’t ask me anymore what currency these merchants will use to settle transactions. It must be Bitcoin.

Currently, DJI is keen on designing load-bearing drones, while Shunfeng and Amazon have begun experimenting with using drones to solve the last mile problem of express delivery. In the next three years, we will see a decisive battle in which Bitcoin and drones join forces to defeat tariffs.

Chapter 5: 3D Printing Explodes Digital Content Trade

We all know that the long tail theory makes it impossible to mass-produce personalized products, which in turn makes it impossible to reduce costs, resulting in the inability of modern industry to meet the personalized needs of human beings. However, the market for personalized needs of human beings is unlimited.

3D printing technology can fill this need.

I don’t need to brag about the greatness of 3D printing here. What I want to talk about is an inevitable result of the large-scale application of 3D printing - the rise of digital content trade.

With a 3D printer, you still need a 3D model to print out the product you need. This modeling technology is a technology that can be traded. This will give rise to a brand new market. In the future, Chinese people can hire a French designer to design a pair of shoes with French style for us, and Chinese people can hire a Japanese to design an inflatable doll with various styles...

Think about it, my forward engineering software SolidWorks and reverse engineering software Magic are so good...haha...

Well, I have to say again that there will inevitably be a market for Bitcoin in digital content trade settlement. Bitcoin is the natural Internet currency.

Currently, 3D printing technology has begun to enter the homes of ordinary people, although most of them are still just toys. I believe that within three years, a 3D model trade will inevitably emerge in the global market.

Chapter 6: IoT builds trust between strangers

The Internet of Things mentioned here is to register atomic products on the blockchain and connect them into a network. For example, we can register our own house on the blockchain.

This blockchain IoT will bring about a smart protocol, or smart contract. For example, I register my refrigerator on the IoT, and JD.com also registers yogurt on the IoT. When the deliveryman delivers the yogurt to my refrigerator, the yogurt can automatically transfer its ownership on the IoT to my refrigerator, and of course I have to pay a sum of money.

This scenario has a lot of room for imagination. This is the first time that humans have established a connection between atomic assets and digital assets under the premise of decentralization. Using blockchain to protect our rights and interests.

For example, if you drive to Kazakhstan and lose your wallet, how can you borrow 10,000 yuan from the locals? Signing a traditional contract is useless. If you breach the contract, where can they sue you? But you can register your car to the blockchain Internet of Things, and use the property rights of the car on the Internet of Things to mortgage to the other party. If you breach the contract, the property rights of the car on the Internet of Things will automatically belong to the other party. This process does not rely on any court, but only on code.

Well, at this point, is there anyone who would still reject Bitcoin?

Currently, IBM, Samsung, and some institutions of Nasdaq are keen on studying the Internet of Things. They are also studying how to register securities on the blockchain, as well as Ethereum. Domestic companies such as Ant have such ambitions. I don’t know when it will enter the practical stage.

Chapter 7 Conclusion

I face this era with hope. Bitcoin is the first time that we can use code to protect our property, which is the source of freedom and the root of rights. We are ushering in a new era.