THELOGICALINDIAN - n-a
The economist Albert Alchain already said “economics does not affliction whether bodies are rational, but whether bodies can survive.”
This account absolutely hits home. After ten years of accelerated advance in the agenda bill market, the consequence best bodies accept is that it’s all aloof hype, a bubble, or too risky. While anybody has their own view, the ambition is not to ascertain what the accepted bazaar should be, but what it absolutely is.
Review of Digital Currency Market Investment in the Past Decade
Bitcoin Investment Logic Since 2024
Since 2024, there accept been abundant accessories discussing the argumentation abaft Bitcoin investment. There are three capital credibility to consider:
Ethereum’s Influence on the 2024 Bull Market
In 2024, the attempt of Ethereum and acute affairs triggered a balderdash market. The assay of the affidavit for this movement, however, is acutely not acceptable in allegory the amount of Bitcoin investment. This is abundantly due to the actuality that agenda bill believers tend to admit Bitcoin as an “asset,” while other agenda currencies can alone be referred to as “investments.”
We can artlessly explain that the “assets” actuality accredit to “investment appurtenances that you are accommodating to authority for a continued time, while assertive that you can accretion connected bread-and-butter returns.” On the added hand, “investments” accredit to “investments with amount actuality added reflected in concise gains.”
The bazaar in 2024 can be declared as follows:
[DAO is a abstraction proposed by Ethereum. The allurement archetypal is agnate to the acceptable advantage incentive, but added adjustable and fair. Its administration archetypal relies on acute contracts, rather than centralised authorities.]
Driven by both amount and the ideal opportunity, some investors accept to advance in Ethereum or added acute arrangement projects. In accession to accomplishment balance returns, they additionally maintained a faculty of adherence agnate to religion. Die-hard developers and adherent investors akin alternate in their favourite projects and bigger them.
During the balderdash bazaar of 2017-2024, top analysis institutions and acclaimed advisers in China (and elsewhere) set up teams to advance public chains with college performance acute large-scale financing. Harmony, Algorand, Oasis Labs, Blockstack, and Nervos were brilliant projects of these efforts. However, in 2024, they accept not performed well, and the bazaar seems to accept absent activity for these projects.
The Boom of Exchange Currency in 2024
During the bull-bear transition, investors who were aching by the bazaar blast assuredly accomplished that “public chains are useless.” So, abounding high-performance accessible chains were developed, but these technical advantages could not be relied aloft to body a abiding ecology.
The DAO archetypal we so accept in seems to be out of reach.
The abstraction of “exchange currency” is the alone advantageous characterization for real-world investing. Income from the barter is acclimated to buy aback tokens and affair assets to investors. Simultaneously, the tokens acquire advantages abreast from disinterestedness — it bears the action of a bill and can be acclimated for transaction fees, etc. This abstraction makes best bodies feel acutely at affluence because, although a badge is not a currency, it is acclimated in such a agnate address and is perfectly advised for the badge abridgement mechanism.
For a abundant account of the investment argumentation abaft the bill of exchanges, amuse accredit to antecedent accessories by X-Order: “Currency Revolution: Combining Commodities, Securities, and Bill in One: “Super Carrier” Binance Cryptocurrency (BNB)”.
Currently, the bazaar has alternate to the best basal business argumentation – the following of banknote flow. Investors are no best led alone by acceptance in the authority of a project: no amount what blazon of agenda currency, it is by attributes an ambitious project. The alone concern, then, becomes the adeptness for the broker to make money. Consequently, if assets are realized, again investors prove that they accept the adequacy to cull up the market.
Has Bitcoin Investment Logic Been Proven?
The acknowledgment is absolutely yes. Whether we attending at aboriginal Bitcoin investors who artlessly had a hunch, or the accepted Bitcoin advance argumentation afterwards its atomic growth, best investors accept a consensus on the affidavit for advance in Bitcoin.
However, the bazaar amount of Bitcoin is still agnate to a ample listed Internet company, after any signs of added admission investment.
In fact, Bitcoin needs a acceptable amusing ambiance as a agitator to added aggrandize accessible consensus.
Is the Concept of a DAO a Fantasy?
The balderdash bazaar brought by the Ethereum arrangement was short-lived. Therefore, the possibilities of DAOs were never absolutely realized. This makes us wonder: is the abstraction of a DAO an impossibility?
First of all, it is cryptic if it is accessible for Ethereum or a accessible alternation to naturally aggrandize its network. However, it is adverse to bread-and-butter attempt if we appetite to accredit a accessible alternation to be like a DAO – apart authoritative itself and expanding.
In the market, “scarcity” is an cold fact. When adverse absence of high-quality resources, bodies will accept to accomplish a choice. Among abounding accessible chains, bodies will artlessly accept the best ecologically absolute accessible alternation to advance and accomplish contributions.
Although a DAO is decentralized, a bright ambition of such projects is still necessary. Due to the abridgement of accuracy in the absolute amount of the accessible chain, it is difficult for the accomplished arrangement to be calmly autonomous. However, this does not beggarly that the abstraction of a DAO cannot be activated to added blockchain projects.
Is the Cryptocurrency Industry’s Pursuit of Cashflow a Form of Evolution?
For the activity teams, the actuality that investors alpha to accede banknote breeze agency that they attending at added aspects back assessing the project, which will advance the project’s affection as a whole. However, we cannot say that it is evolutionary back investors alone accompany banknote flow, because this tends to absolute our thinking.
Common Investment Themes
Once the advance affair break out, acceptable advance articles will emerge, bringing investors balance returns. At the aforementioned time, the industry alternation formed about advance articles can aggrandize its abundance effect.
This is the case with Bitcoin. The upstream industries (mining machines, mining pools, mines, etc.), and the average and after industries (exchange, custody, lending and added banking services) about Bitcoin are all advancing and accident alongside Bitcoin. This is different in the accomplished of the cryptocurrency market.
Ethereum additionally approved to authorize such an automated alternation from the angle of its functions, such as amplification solutions, middleware, DApp and added projects about it — abounding of which accept additionally acquired all-embracing advance in contempo years. At present, Ethereum has accustomed the better anatomy in the acreage of accessible chains, but that has not helped access its value.
The Digital Currency Industry In the Future
One trend we can beam is that the agenda bill industry is no best alone developing about the abstraction of the “blockchain.”
There accept been an accretion cardinal of acceptable companies arising agenda currency, and start-ups accepting costs in the anatomy of agenda currency. Based on the angle that “a agenda bill activity is finer an ambitious project,” the industry attracts start-ups, and these startups authorize goals in adjustment to accomplish the industry bigger in the future.
What Characteristics of the Digital Currency Industry Attract Entrepreneurs?
However, a badge abridgement is added flexible. It gives the activity added opportunities, such as capital, influence, acceptance and so on. Going accessible on the barter is no best the end. As we all know, there are assorted continued and abbreviate mechanisms and banking derivatives in the agenda bill market. This makes the ‘survival of the fittest’ action added flexible.
The bazaar is a two-way alternative process, so the best projects are not the alone projects acceptable for recognition. This is aloof the antecedent stage. The bazaar will eventually accord us the acknowledgment as to whether or not a activity is valuable.
What Is the Mission of a Particular Project in Order to Accelerate Industry Development?
The CEO and CTO of Zilliqa both larboard the project, while a acclaimed researcher at Loom has additionally been doubtable of leaving. These two accustomed agenda bill projects alternate in the balderdash bazaar in 2024 and enjoyed advantageous profits. Furthermore, they accept consistently been the leaders in the industry’s abstruse development. When bodies at the beginning of the industry activate to accord up, it credibility to accessible alternation in the ecosystem.
It’s accessible that they gave up because these projects were clumsy to acquisition a breakthrough. But conceivably the industry needs an accretion cardinal of projects like Mine Sweep in adjustment to advance developers to acquisition such breakthroughs. Development and abundance paves the way for innovation.
In the agenda bill industry, the bazaar is consistently one of the best advantageous channels to advice projects bound body up influence. Since the activity has enjoyed the allowances of costs and avenue adaptability brought about by the market, it should additionally buck some of the agnate responsibilities.
The afterward is an archetype of the accepted action for a activity to be listed on an exchange:
The accessibility of bill arising after-effects in the action and timing of the activity arising to become key credibility of consideration.
Instead of cerebration about how to account on an barter and await on acknowledging prices actively, activity teams should anticipate about how to about-face these traders into a allotment of their own network.
Start-up projects charge to accompany addition to the industry.
The industry needs added disruptors, not followers.
For example, staking is currently a accepted trend. But what is the point if every activity does staking? Whether it is a baby advance to the blockchain infrastructure, or authoritative improvements to a acceptable business archetypal chip aural a badge economy, anniversary activity should accept its own characteristics and advantages, bringing new afflatus to the industry.
Conclusion
Finally, the approaching is abounding of ambiguity — the abutting beginning of the agenda bill bazaar may be due to the development of blockchain technology, or the redistribution of the agency of assembly acquired by war and turmoil. No one can be sure. At present, an accretion cardinal of altered companies (sharing economy, amusing entertainment, bogus intelligence, etc.) are aggravating to participate in the amusing agreement of this transformation.
Written by Carey Cai and Edited by Daphne Tan. X-Order is an advance and analysis alignment committed to the abstraction of amount abduction in accessible accounts founded by Tony Tao.
