From the development of horse-drawn carriages to automobiles, what has happened to cryptocurrencies?

As a practitioner in the blockchain industry, I often see some information that makes me jealous and makes me angry. For example, a certain boss shorted LUNA, and when he woke up, his account had an extra 1000W; I drove UNFI and earned 100W+ overnight; a certain friend, a certain colleague... Brothers, you are earning my money, right?

Even if this industry treats me like this, I still love this industry deeply. I still believe that only this industry can outrun 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 do you say that?

01

Hype cycle (technology maturity curve)

Those who pay special attention to the development of high-tech should know the Gartner Technology Maturity Curve (pictured above). This curve can help us see through the development trend of an industry, which can be simply summarized into five stages.

• Innovation Embryo:The Hype Cycle begins with a breakthrough, public demonstration, product launch, or other event that generates media and industry interest in a technological innovation. Often no usable product exists and commercial viability has not been proven.
• Overheating period:The media began to report heavily, and a large number of new companies sprung up like mushrooms, hoping to take advantage of this trend for profit, and began to promote this technology as a "revolutionary technology", and then a large number of mainstream people joined.
• The Trough:Inevitably, disappointment with results begins to replace initial enthusiasm for potential value. Performance issues, lower-than-expected adoption rates, or failure to realize financial benefits at the expected time all lead to dashed expectations.
• Recovery:Interest wanes as experiments and implementations fail to deliver. Companies began to close down one after another, and the media immediately turned around and began to bad-mouth the industry. When the hype wears off and those surviving projects begin to improve product-oriented rather than token value in order to satisfy early users, the investment will continue.
• Productivity Maturity:The masses start to use the technology. Companies in this space are entering a long and sustained period of growth.

Why do I spend a lot of time introducing the Gartner technology maturity curve? When you carefully study the logic of this curve, you will find that both blockchain technology and cryptocurrency technology are in the "overheating period" stage , at this stage we will find that mainstream cryptocurrencies start to collapse, and the mainstream media hypes up this collapse.

Then in the next few months or even years, we will enter the "trough period" stage, then do you understand that in this stage, thousands of cryptocurrencies will disappear, and hundreds of billions or even trillions of dollars will disappear? The value is being erased. After all, according to statistics, from November last year to now, the encryption market has lost trillions of dollars.

If you read the trend, then I can see money coming your way.

02

LUNA - The trigger for the cryptocurrency crash

The most shocking thing in the cryptocurrency market this year is the collapse of LUNA. In just a few hours, the loss was as high as 98%, about 40 billion U.S. dollars. How brilliant LUNA was before it collapsed, occupying the top three stablecoins for a long time. Once it crashes, it will be almost zero in just one week. How glorious it was once, how desolate it is now.

Many investors analyzed in the later stage that the collapse of LUNA was inevitable, but it was brought forward due to various reasons. This also exposes a major flaw in the industry. No matter whether you are a stablecoin or not, and whether you are pegged to the U.S. dollar, as long as there is insufficient collateral, you can crash at any time.

Even though 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. To put it bluntly, Jack Ma was called a liar when the Internet was just emerging in our country, and later he gradually became Papa Ma. The same is true in the cryptocurrency space now, and we cannot expect changes to the industry overnight.

Now because of the LUNA crash, the cryptocurrency market collapsed. Looking back at the history of the Internet, it is somewhat similar to the Internet bubble in 2000. Combining with history and analyzing from a long-term perspective, I am very optimistic about the future development of cryptocurrencies. So, this crash is not the end...

03

A new round of cryptocurrency revolution

It has existed since ancient times, the prosperity will decline, and the extremes of things will be reversed. Looking back at the Internet bubble in 2000, it can be described as a very magical large-scale performance show. The revolution brought 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 that of replacing cars with cars. The age of the carriage. Therefore, I have reason that a new round of digital currency revolution is coming.

After the underestimation period is the recovery period, and then the productivity maturity period. If you look at these stages, then the next time we meet, I think it will be on the Forbes magazine list.

As long as you see the opportunity, truly visionary and innovators who are willing to invest in new technology research will emerge, bringing us a new round of cryptocurrency revolution. Just like in the Internet era, there are Tencent, Alibaba, and Baidu in China; Amazon, Facebook, Google and other companies in foreign countries have used innovative Internet technologies to change our world.

Likewise, I believe cryptocurrencies will follow the same path. As long as we have a good eye for discovery, it is difficult to make $10,000 in BTC, but it is not difficult to make $10,000 in those undiscovered currencies. If you don't know how to find it, you know how to find us.

04

Explosive Wealth Creativity

In today's market, you will find a strange thing, altcoins are popular, this one is skyrocketing, and that one is pulling the market crazily. The sentiment in the market is being ignited by these coins. It will trigger the greatest wealth explosion opportunity in modern history, the opportunity to invest a small number of altcoins and earn a lot of dollars has multiplied.

If we want to realize the importance of the opportunity now, we must have a different understanding of altcoins. Only in this way can your assets soar. It is definitely an investment in one of the most valuable and revolutionary technologies ever. 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 today our biggest wealth-creating oil mine is the crypto market.

05

The great potential of cryptocurrencies and blockchain

It can be said that since the Internet, it is the most disruptive high-tech non-blockchain technology. The most important point is that it allows all industries to be decentralized without any central authority, making untrustworthy become credible.

The application of blockchain is theoretically unlimited. At present, the most heated discussion and the most involved is DeFi (decentralized finance), which is what most of us often call cryptocurrency. Using cryptocurrencies, we can create a new era of finance 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 and JPMorgan Chase, as well as trillion-dollar companies such as Alphabet, Amazon, and Mate, will invest in disintermediation technology. Bring about huge changes to the industry.

write at the end

We don’t know what will happen to the encryption market in the future, but I think there is a saying that makes sense, those that burst will only be bubbles, and valuable companies will eventually move towards the next prosperity. In the early days of the Internet, those successful companies just did some very simple things. They just digitize what already exists in the physical world, shopping malls become digital malls, movie theaters become digital theaters, etc. So, in this cryptocurrency craze, can we also find a good entry point and then decentralize it, maybe you will create the next hundred times coin and thousand times coin.

The above views represent the views of the author only, not the views of the platform. Investment is risky, please invest carefully!