Why won’t Bitcoin collapse? Let’s talk about the logic of “hard currency” in the virtual world.
I was chatting with friends in the circle recently, and someone asked a soul-searching question: “Bitcoin is also supported by consensus, so why won’t it collapse?” This has to start with the evolution of “general equivalents”——
1. From shells to gold: the logic of equivalents in the physical world
In ancient times, it was very troublesome for different tribes to exchange things. Seashells are used as money at the seaside, and stones are used as money in the mountains. Later, everyone discovered that gold is naturally suitable for being a "hard currency": - Scarcity: not too much can be mined, and it will not depreciate easily; - Stable physical properties: not easy to rot or rust, and can be stored; - Convenient for trading: can be cut into small pieces, and it is also light to carry; - Good appearance: it is shiny after polishing, and everyone recognizes it. In this way, gold has become the "general equivalent" of the physical world and has not changed for thousands of years. 2. Pie is the "gold" of the virtual world Now more and more people are "living" online, buying skins in games, buying land in the metaverse, and even working in virtual space. At this time, the virtual world also needs a set of "hard currency" recognized by everyone, and Bitcoin fills this gap: 1. Features that are more powerful than gold - Extreme scarcity: There are only 21 million in total, and the number will be "halved" after a certain number is mined, and the more you mine, the slower it will be, and the less it will be. After the halving last year, Bitcoin’s S2F model (stock/flow ratio, an indicator of scarcity) directly surpassed gold and became “the world’s most scarce asset”; - The natural advantages of the virtual world: no need to carry gold bars around, you can transfer money by saving a wallet address in your mobile phone; and transactions are anonymous and secure, cross-border transfers arrive in minutes, which is 100 times more convenient than bank transfers; - Resistance to “physical attacks”: gold is afraid of theft, robbery, and fire, but Bitcoin exists on the blockchain, so as long as the private key is not lost, it will never be lost (provided that you don’t forget the private key in the computer in the Internet cafe…).
2. The underlying logic of the virtual world’s need for “hard currency”
- Humans are becoming more and more “virtualized”: from playing with mobile phones and taking online classes to AI and the metaverse, people are spending more and more time in the virtual world. In the future, “the boundary between reality and virtuality will become increasingly blurred” (just like Zhuangzi dreaming of a butterfly, who can clearly distinguish between virtuality and reality?);
- Traditional finance cannot keep up with the pace: stock transactions have opening and closing times, bank transfers have fees and delays, and transactions in the virtual world require 24/7 non-stop transfers, no cheating, and clear property rights - Dabing’s blockchain technology perfectly solves these problems. Transfers are made in seconds, and transaction records exist forever, and no one can change them.
3. Dabing’s “Moat”: Technology + Trend + Ecology
There are many different cryptocurrency projects now, but Dabing’s position is hard to shake, because it is backed by the triple buff of “Technology Consensus + Trend Consensus + Ecology Consensus”:
1. Technology Consensus: The “Immutability” of Blockchain
The blockchain of Dabing is like a “big ledger that always keeps the real account”, maintained by miners all over the world. Want to secretly change the transaction records? Unless you can control 51% of the global computing power, which is harder than climbing to the sky. This “absolutely fair” technology allows everyone to keep it as “hard currency”.
2. Trend consensus: the "rigid need" of the virtual world
As long as humans continue to run to the virtual world, as long as the Internet, AI, and the metaverse continue to develop, transactions in the virtual world will require "hard currency". Bitcoin has already become the "gold" in this field. If latecomers want to replace it, they have to solve the problem of "getting everyone to reach a consensus again" - this is 1,000 times more difficult than creating a new currency.
3. Ecological consensus: the game between capital and the "balancer"
Now some people in the circle say "AI goes left, blockchain goes right", which means:
- AI represents "centralization": large companies and big capital use AI to develop technology and monopoly, and power is becoming more and more concentrated;
- Blockchain (represented by Bitcoin) represents "decentralization": ordinary people can use it to fight monopoly and protect their wealth.
Just like the "yin and yang fish", the more concentrated one side is, the more the other side will be needed, and they will check and balance each other. Capital wants to play the "stable currency bill" and wants to control the wealth of the virtual world, but in the end everyone finds that "the carrier of wealth expression still has to rely on blockchain, especially big pie" - because of its scarcity and decentralization, it is a natural "balancer".
Fourth, what do ordinary people think of big pie?
Some people think that big pie is a "gambling tool", and some people think it is a "prototype of future currency", but in essence, it is an experiment + forerunner of "hard currency in the virtual world".
If you agree that "human beings will become more and more virtualized" and "traditional finance needs innovation", then the logic of big pie relying on blockchain makes sense; but if you think that "the virtual world is unreliable" and "blockchain is a gimmick", then it may always be a fog for you.
Finally, a reminder: The cryptocurrency market is risky and the price of bitcoin is volatile. Don’t get carried away just because someone says “sky-high price target”. For ordinary people like us, understanding the logic and avoiding pitfalls is the first priority, and making money is the second. After all, recognizing the trend is more important than blindly entering the market!
(This article only talks about technical logic and does not constitute investment advice. The cryptocurrency market is risky, so be cautious when entering the market!)
Weiliang
Anais
Miyuki