Asset Chain Wanjia: Bitcoin has a bubble, so what?

introduction

More and more people believe that digital currency can be used to achieve their small goal of making 100 million first.

True or False Proposition

Wan Jia, the founder of AssetChain, is a loyal follower of digital currency, but even within the company, he tries not to communicate his experience in cryptocurrency trading directly. Because Wan Jia was exposed to Bitcoin and digital currency very early, the team privately regards him as a low-key "scalper".

"Hype and bubble are topics that the public often talks about. These two labels always follow a fast-growing industry, such as digital currency, a sensitive and novel financial industry." Wan Jia said. Since the birth of Bitcoin, as the price rises, especially during the period of skyrocketing, many people will think that it is a bubble product. Now, more people are willing to regard Bitcoin as a bubble asset, and the key word is the word "asset" at the end.

Bubbles are a kind of economic imbalance phenomenon, which can be defined as a certain price level relative to the theoretical price determined by the economic basic conditions. Generally speaking, when speculative bubbles occur, prices tend to rise suddenly. The rising trend of prices may make the market expect further price increases and attract new buyers, forming a self-fulfilling positive feedback process. On the surface, the market development of Bitcoin fully conforms to the concept of bubble assets, but after about 9 years of development, the price of Bitcoin is inversely proportional to the bubble. On the contrary, certain asset bubbles can stimulate the health of the Bitcoin market, because the development and progress of new industries will inevitably require more users. Bitcoin has bubbles, but it is not a typical bubble economy. We can even think that the birth of this bubble is justified and necessary.

Assetchain is a project led by Wanjia’s team. It was originally created to solve the public’s misunderstanding of digital assets—that they are only hype and speculative. Based on this, Wanjia wants to use blockchain technology to bring high-quality assets or asset growth products around the world to investors, so that they can see the economic support behind a “coin”.

"Today's Bitcoin (digital currency) industry has a complete infrastructure configuration, from miners to mines, from clients to the development of various apps with convenient payment functions, from Bitcoin speculation to the discovery of blockchain technology; more and more practitioners are joining in, technology, market, etc. Coinbase's valuation has reached 1 billion US dollars, and in the future there will be more digital currency and blockchain companies that will become capital unicorns." Wan Jia said. "As for the bubble, it seems to be a false proposition. The ecological construction of the Bitcoin industry is perfect. It is not a string of incomprehensible codes back then."

ICOs need room to grow

ICO may not be the best financing model, but it is the most suitable way for blockchain companies, because tokens are the focus of all links related to interests. In this way, even if industry practitioners think it is too barbaric, it is still very popular.

"We don't know how to answer users' questions, such as whether the asset chain can increase in price after it goes online, how many times it can increase, whether it will break the issue price, etc. If you answer, some users will think that the price trend is dominated by us, and we will naturally become black market makers; if you don't answer, users will think that subscribing to asset chain tokens is to make money. If it is so vague whether it will increase, why participate in it." Wan Jia seemed helpless. "But we can definitely understand it, because now the entire industry is gradually transforming from the pioneering behavior of the barbaric ecology to the formal ecology and elegance. The ICO process of each blockchain company is mainly to convey to participants what to do in the future or now. As for whether it makes money or not, if the issuing token company makes money through the application of blockchain, then the value and price of the token will definitely rise. For example, the asset chain token ACC, if all the assets circulating on our chain are blue chip stocks, it will be difficult for ACC not to rise."