Eat the World: Cryptocurrency and the World’s Real Connection

Storming the Moon · Talking about Ideals

Bitcoin is the time, the first DePIN product, and the first to prove the network effect of cryptocurrency.

With David Sacks's push, the White House Crypto Conference is imminent.

But the crypto industry of Dongda is not happy, believing that Trump is purely using the currency circle as an ATM, which will continue to absorb internal liquidity and lead to further price declines. Against this background, voices shouting that the crypto industry is unique, excluding external users on the surface, but actually calling for staying away from the political whirlpool are rising one after another.

There is no doubt that cryptocurrency is already part of the real world;

It is unavoidable that the economic returns and purity of blockchain have declined.

From the current situation of cryptocurrency, PVP is an absolute dead end, and innovations such as DeFi and NFT similar to the 2021 cycle are nowhere to be found. If you don't participate in PVP, Trump and ETF will pump water, and Pump Fun and Four Meme will also take away your USDT. Then just PVP together, it seems that you can also be happy for a while.

Of course, I'm talking about the encryption field.

In response to this matter, Western scholars have long recorded it through The Wealth of Nations and the Prisoner's Dilemma:

Starting from individual selfish motives, the paths of both parties are:

1. The Wealth of Nations: Individual pursuit of profit -> Market transactions -> Resource optimization -> Economic growth

2. Game theory: Individual rationality -> Short-term game -> Resource competition -> Collective loss

Translated, all the problems now are that the crypto industry has no products that generate and retain value, which eventually leads to U-standardization, and no one is willing to hold various cryptocurrencies.

In fact, Trump's FOMO and FUD against cryptocurrencies are all emotional clearing, from $TRUMP to the metaverse and NFT, which obviously exceeds Trump's personal ability to operate. Otherwise, it would be too abstract to layout the crypto business while confronting Zelensky.

The only question is who is the KOL Agency that is the matchmaker. They have replaced the K Street lobbyists, proving that the lobbying power of the crypto industry is comparable to that of the traditional military-industrial complex.

Nothing is real; Bitcoin is value.

At the critical moment of the industry, looking back at the history of Bitcoin, we will find that Bitcoin is not an exclusive private product, but a gift to all mankind. It is precisely because of its extreme inclusiveness that it has finally evolved from a money laundering tool and a toy for geek groups to a synonym for value that is competitively configured by the world.

If you believe in the compound interest of time, you will get the rewards of life.

Looking inside and outside the snow line, encryption continues to evolve

High temperature corresponds to disorganization, and low temperature corresponds to high organization.

The crypto market is very hot right now, and the corresponding entropy value of disorder is also extra high. After the consensus conference in Hong Kong, the short essays and memes that have been popular for several years disappeared together, which means that people in the circle can't find a consensus. Only KOL Agents are left looking at each other in bewilderment and regard each other as offline.

The subculture of the crypto market is taking shape, and the group consciousness of our small crypto world is surging undercurrents. He Yi's BOSS Direct Recruitment reflects the self-organization of the industry, and the outside world is silent about it. The accumulation of power always represents the accumulation of power before going out of the circle.

In this cycle, BTC/ETH/SOL have weak continuity. BTC with 100,000 yuan has become a goalkeeper, ETH has been sleepwalking, and has just started to sort out its internal affairs. SOL is the most normal, and it is nothing more than the coin issuing group replacing the FTX and Jump conspiracy groups.

The real future is obviously not in the competition between public chains and L2, but in the swallowing of cash by stablecoins. The only question is to what extent can stablecoins + SOL/Tron/EVM public chains replace the small systems of various countries.

Cash has disappeared in China, but WeChat and Alipay are the mainstream players. Any U card such as Infini cannot obtain the qualification for domestic UnionPay issuance and must be subject to the restriction of personal foreign exchange control quota. Even if products such as HyperCard are used to launch UnionPay U card services in Laos, they still cannot be regarded as the same as domestic bank products.

India, Brazil, Nigeria and other populous countries are indeed rapidly becoming cashless, but it is not stablecoins that are occupying the market. This part of the market is rapidly divided by local central banks, banks and Fin-Tech companies, leaving only leftovers for stablecoins.

Fundamentally, stablecoins involve national sovereignty, and today's stablecoins are essentially variants of the US dollar and the external form of US debt. Any country with certain aspirations will resist US dollar stablecoins, unless they are small countries that are de facto or de jure dollarized, such as El Salvador and Cambodia.

In other words, the stablecoin market is divided into three types. The first is China, the United States, India and Brazil. Stablecoin is just a marginal financial product. The second is small countries that are dollarized. Stablecoin is more convenient than the US dollar, but the market has not yet been fully opened and still needs Visa/MasterCard's channel curve to enter. The third group is medium-sized countries such as Nigeria and Turkey, where the currency system is chaotic, inflation is high, but the country has certain national capabilities, resulting in a large application market and real demand for stablecoins, but they cannot be completely mainstreamed and compliant.

Just as Trump targets both positive and negative emotions, the biggest advantage of stablecoins is stability. Compared with cryptocurrencies that need to prove their value through currency prices, the demand for stablecoins has taken root.

Just as Paypal and others completed a surprise attack on card organizations at the beginning of the century by first attracting customers without barriers, guarding the established market, and then completing the landing in compliance, the current cryptocurrency is also going through this process.

Moreover, BTC and ETH have completed the initialization stage of user education. BTC has proved the feasibility of network effects from scratch, and ETH has magnified the network effect to millions of real users. TRC-20 USDT stablecoins do have real daily users around the world.

It is inevitable that before the crypto field is used by hundreds of millions of people around the world, it is meaningless to shout about Mass Adaption. Otherwise, there would not be the COM bubble at the beginning of the century. Please believe me, The speculation of Web2 at that time was no weaker than it is now, and it was not until Google established an advertising system that the value of the entire industry found realistic logical support.

Escape the concept of single point and embrace group intelligence

The reason why stablecoins are argued in great detail is that the public chain and DeFi at this stage have reached a bottleneck period. After the upgrade of Solana's Firedancer is completed, Solana 2.0 and ETH 2.0 are currently the two fastest and most stable chains, which are enough to meet any needs of most users and developers.

Only stablecoins can extend the network effect of cryptocurrencies to the extreme. In fact, blockchain does not need to discuss how to achieve externalities. As long as there are enough people, group application paradigms will naturally emerge. From ant colonies and bee colonies to human tribes and urban civilizations, they are all proving the reality of group intelligence.

Of course, there is a paradox here. We cannot explore the possibility of all stablecoins becoming mainstream, but if you don’t explore them, you won’t know which possibility is worth exploring. At present, it can actually be reduced to a battle between pure on-chain adoption and real off-chain scenarios.

This question cannot be discussed to find an answer, but there is a very effective truth: Only by treating products as services can the best results be achieved. Taking Deepseek as an example, the most accurate comment I have seen is: "Deepseek is a feature, not a product."

I will give a blockchain version. We do not need to pay attention to the dynamics and technological progress of public chains, Uniswap, and Binance. We focus on their connection with everyone in the world. Why Binance has achieved such a huge commercial success is because it really has more than 100 million encrypted users. They may not be on-chain users, but their existence makes Binance's network effect extremely close to that of traditional Internet companies.

The only problem is that we have to find feasible promotion and application scenarios for stablecoins in practice without knowing how to expand them specifically.

For example, in the cracks of regulation, stablecoins need to complete primitive accumulation with anti-fragility, take advantage of the disorder in the gray area, and deconstruct the order arrogance of traditional finance. Undercurrents always find infiltration paths outside the high-pressure barrier, and compliance is not a priority breakthrough or a gimmick to show off.

To reconstruct the payment ecosystem in the sunny area, it is necessary to face the iron wall of vested interests. Technical efficiency is only an entry ticket. The real competition is the patience of institutional games. When the regulatory cost itself has become a moat, the subverters either wait for the metabolic cracks of the old order, or use the capillary-like penetration in the marginal areas to disguise the revolution as reform, just like Paypal to the card organization, and now it is stablecoin to the bank.

Stablecoins are standing at this crossroads. The success of the black industry is its original sin, and the price of whitewashing may be to bow to the rules of Trump, the sun in the west.

In every era of thought, there will be a certain style of thinking that tends to become the common measure of cultural life. Cryptocurrency, technology, and thinking will definitely become the iconic characteristics of this era.

May we find the Strawberry Fields of this era in the world of cryptocurrency.