Keep an eye on mainstream coins and throw away altcoins

1. Boiling currency prices, skyrocketing stocks

After the announcement of the central government’s collective learning of blockchain technology, the price of Bitcoin rose from $7,500 to around $10,000 within 24 hours, an increase of more than 30%.

Domestic public chains have risen by more than 200% compared with the original chain, Ant by more than 50%, Ontology by more than 70%, and Nebulas by more than 60%. Xunlei, which is listed in the United States, has risen by more than 145% for two consecutive days; and this Monday, A-shares opened , More than 100 blockchain concept stocks have daily limit. The entire investment circle is in full swing.

In this regard, I must remind all investors in the currency circle and A shares not to follow this trend blindly.

2. Don’t be fooled by the spectacle of “prosperity”

The central government has made such a strategic deployment to lay out and plan for the development of my country's blockchain in the next few decades, but this road is still very long, and it is just the beginning now, and it is far from the period of real dividends.

No matter how good and promising blockchain technology is, it is still at an early stage, and it is far from being popularized and applied on a large scale. direct benefits.

Did the fundamentals of the same public chain change before and after the news came out? No. Did the fundamentals of the same stock change before and after the news came out? nor. So regardless of the price of these public chain coins and A-share stocks that have been driven up by following the trend, I can only say that they were blown up by this hurricane.

Let me not talk about A-shares for the time being, but just talk about the public chains mentioned just now. My view on them remains the same, and I think their long-term value is getting lower and lower. In the field of smart contract public chains, there are only a very few that are most likely to win in the end, and the possibility of most public chains running out is not high.

Therefore, in the eyes of outsiders, there are actually many risks hidden in the scene of prosperity and cheers.

3. Investors should be wary of two types of traps

So how will this direction develop next, and what does it mean to us ordinary investors?

I think this craze will continue for a while. On the one hand, some projects that have been dormant may take advantage of the trend to get out of the market; on the other hand, there will be many new monsters and monsters infiltrating this industry and circle.

After the central government raised blockchain technology to a strategic level, all levels of our country, from relevant government departments to companies, enterprises and scientific research institutions, will increase investment in this area and actively explore applications and practices in related fields.

Such applications and practices mainly use the characteristics of blockchain technology in terms of efficiency and data tamper-proof, but the demand for incentive mechanisms is not prominent, so this type of blockchain is mostly used in alliance chains.

Our ordinary investors generally focus on digital currencies, and digital currencies are mainly linked to public chains, and most of them are the core incentive mechanisms of public chain projects. The public chain is equivalent to "unclaimed territory". To make free people willing to play a role and participate in collaboration in this unowned territory, there must be a corresponding reward mechanism. In the public chain, this reward mechanism is tokens.

Therefore, in many existing fields, the applications we have seen and heard, such as traceability, credit investigation, and certificate storage, are all alliance chains, which are different from public chains.

Of course, the development of alliance chain technology will promote the overall development of blockchain technology. When a new technology is born in the alliance chain application, it will be absorbed into the public chain to promote the development of the public chain, but its impact on the public chain currency price Basically no direct relationship.

What really has a direct impact on the currency price must be the application in the public chain field. The typical one is ICO, which directly pulls the price of Ethereum from a few dozen yuan to a maximum of nearly 10,000 yuan. Therefore, the long-term rise in the price of public chain currency and the value of long-term investment still depend on the development of the public chain ecology itself.

If the development of a public chain ecology itself is extremely limited, or if it is left far behind by competitors, its value is extremely limited. That's why I think the surge of quite a few public chains is just a gust of wind. That's not bringing the dead back to life but resurrecting the dead.

Therefore, in this process, if a project party uses some cases in the application field of the alliance chain to promote the currency price of some public chains, we investors must be very cautious.

If the long-term value of certain deep-set public chain tokens in the hands of investors is extremely limited, but they are lifted in this gust of wind, I suggest investors quickly sell them while taking advantage of this wind, and don't miss them any more.

In this feast, in addition to some projects with limited value that will take advantage of the wind to drive up the currency price, we must also be wary of some new scammers who take the opportunity to enter the market.

The MLM currency in the first half of this year has made the whole circle a mess, and in the future there will be criminals who will use this outlet to package various projects to collect money.

In the speech of the general secretary, he particularly emphasized the supervision of the entire industry. The blockchain is by no means a place outside the law. While the country is vigorously promoting technology and applications, it will definitely attack those who use the blockchain. Fraudulent project under the guise.

In the end, I still remind all investors: In the next stage, keep an eye on mainstream currencies and throw away altcoins that take advantage of the opportunity to rise.