As a practitioner in the blockchain industry, I often see some information that makes me jealous and angry. For example, someone wake up with 10 millions short LUNA. Someone buy UNFI and earned 1 million overnight; a friend, a colleague all of them are earning… guys, the money you earned is mine.
Even if this industry treats me like this, I still love this industry deeply. I still believe that only this industry can beat inflation. I still believe that the wealth creation ability of this industry is terrible. I am still full of hope for the industry and believe that the next revolution in cryptocurrency and blockchain technology is on the way.
Let’s discuss it below, how to say this?
Technology Hype Cycle
Those who pay more attention to the development of high-tech, should know the Gartner technology curve (above), this curve can help us see through the development trend of an industry, which can be simply summarized into five stages.
l Innovation Trigger: The Hype Cycle begins with a breakthrough, public demonstration, product launch, or other event that generates media and industry interest in a technological innovation. Usually no available product exists and commercial viability is unproven.
l Peak of Inflated Expectations: The media started to hype it up, a slew of new companies sprang up, all hoping to capitalize on the trend, started touting the technology as “revolutionary technology”, and then big guy or big company joined.
l Trough of disillusionment: Inevitably, disappointment with the outcome begins to replace the initial enthusiasm for underlying value. Performance issues, lower-than-expected adoption rates, or failure to achieve financial gains at the expected time all lead to shattered expectations.
l Slope: Interest wanes as experimentation and implementation fail to deliver. Companies began to close down one after another, and the media turned the tide and began to sing the industry down. When the hype wears off, and those surviving projects start to improve their products rather than the value of their tokens in order to satisfy their early users, investment will continue.
l Productivity maturity: people is starting to use the technology. Companies in this field are entering a period of long-term and enduring growth.
Why do I spend a lot of time introducing the Gartner Hype Cycle? When you carefully study the logic of this curve, you will find that both blockchain technology and cryptocurrency technology are in the “ Peak of Inflated Expectations “ stage. , at this stage we will find that mainstream cryptocurrencies start to collapse, and the mainstream media hype this collapse.
Then in the next few months or even years, we will enter the “Trough of disillusionment” stage, so you see, there will be thousands of cryptocurrencies disappearing in this stage, hundreds of billions or even trillions of dollars are being erased. After all, according to statistics, from November last year to now, the crypto market has lost trillions of dollars.
If you know this trend well, then I can see the money coming to you constantly. If you still don’t understand the trend, you can follow us on Twitter（@bi123pro）.
LUNA — The reason behind the collapse of cryptocurrencies
The most shocking thing about the cryptocurrency market this year is the collapse of LUNA, which lost as much as 98% of about $40 billion in just a few hours. How brilliant was LUNA before it collapsed, occupying the top three stablecoins for a long time. Once it collapsed, it was close to zero in just one week. How glorious it used to be, and now how bleak it is.
Many investors analyzed later that the collapse of LUNA was inevitable, but it was just ahead of schedule due to various reasons. This also exposes the major flaws in the industry. Whether it is a stablecoin or not, whether it is pegged to the US dollar or not, as long as the collateral is insufficient, it can collapse at any time.
Even if the cryptocurrency market is so weird, as I said above, I still believe in this industry and believe that the future of this industry is bright. In the early days of the Internet in China, Jack Ma was called a liar, and he gradually became a billionaire. The same as cryptocurrency condition now, and we cannot expect to change the industry overnight.
Now because of the incentive of the collapse of this LUNA, the collapse of the cryptocurrency market, looking back on the history of the Internet, is somewhat similar to the Internet bubble in 2000. From a historical perspective and from a long-term perspective, I am very optimistic about the future development of cryptocurrencies. So, this crash is not the end…
A new revolution of cryptocurrency
Old Chinese ancient words. It flourishes and declines when things are extreme, they will reverse. Looking back on the Internet bubble in 2000, it can be said to be a very magical large-scale show. The revolution brought about by new technologies directly subverted the past shopping, communication and entertainment methods. It is no exaggeration to say that its significance is no less than replacing cars with cars. The era of the carriage. So, I have reason that a new round of digital currency revolution is coming.
After trough of disillusionment is the slope of enlightenment, and then plateau of productivity. If you see these stages, the next time we meet, I think it will be on the Forbes magazine list.
As long as we see the opportunity, real innovators who are visionary and willing to invest in new technology research will emerge to bring us a new round of cryptocurrency revolution. Just like in the Internet era, domestic companies such as Tencent, Alibaba, and Baidu; foreign companies such as Amazon, Facebook, and Google have used innovative Internet technologies to change our world.
Likewise, I believe cryptocurrencies will follow the same path. As long as we have an insight for discovery, it is difficult to make $10,000 in BTC, but it is not difficult to make $10,000 in undiscovered currencies. If you don’t know how to look, you know how to find us.
Explosive wealth creativity
In today’s market, you will find a strange thing, altcoins are very popular. The sentiment in the market is being ignited by these coins. It will trigger the greatest explosion of wealth in modern history, with a lot more opportunities to invest a small amount of altcoins and earn a lot of dollars.
To realize the importance of the opportunity now, we must have a different understanding of altcoins, as long as this can make your assets skyrocket, it is definitely an investment in one of the most valuable and revolutionary technologies ever made. As long as we remember one thing, the underlying logic behind Bitcoin and altcoins is the blockchain.
In the 21st century, software programs are equivalent to oil mines, creating countless millionaires and billionaires, the most famous of which is Mr. Bill Gates, who has long dominated the richest list. And now our biggest wealth-creating oil mine is the crypto market.
The huge potential of blockchain and cryptocurrency
It can be said that since the advent of the Internet, the most disruptive high-tech is blockchain technology, the most important point is that it allows all industries to be decentralized without any central authority, making the untrustworthy into the trustworthy.
The application of blockchain is theoretically unlimited. At present, the discussion that is DeFi is the most popular. Using cryptocurrencies, we can create a new financial era that does not require authoritative intermediaries.
DeFi is the future.
Judging from the current actions, I believe that companies worth hundreds of billions of dollars such as Goldman Sachs, JPMorgan etc., and trillion-dollar companies such as Alphabet, Amazon, and Mata will invest in disintermediation technology, and then there will be bring big changes to the industry.
At the end
We don’t exactly know what the future for the crypto market is, but there is a saying that I think makes sense. Those that burst will only be bubbles, and valuable companies will eventually go to the next boom. In the early days of the Internet, companies that were successful did very simple things. They just digitize what already exists in the physical world, malls become digital malls, movie theaters become digital theaters, etc. So, in this cryptocurrency boom, can we also find a good entry point, and then make it decentralized, maybe the next 100x or 1000x is created by you.
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