Don't read the scriptures of "blockchain" in a wrong way

In recent days, my daily articles are almost all about the latest developments in regulation, because this regulation will not only affect the future development path of the blockchain industry in my country, but will also affect the subsequent participation of industry participants and investors. way of the industry.

Since the release of the regulatory documents in Shanghai, various central-level head media have published heavily, directly or indirectly, exposing and criticizing the chaos and problems in the blockchain industry one by one.

On November 24, Xinhua News Agency issued an article "Xin Shiping: Don't read the blockchain scriptures wrongly". On the one hand, the article reiterated several key points in Shanghai’s regulatory documents, and on the other hand, it pointed out a new issue. There is a passage worthy of our attention:"Some people have the mentality of speculation and the mentality of getting rich, and adopt various means to hype hot spots...they hype Bitcoin, zero coins, air coins, etc."

This passage seems to me to have two meanings:

The first meaning is that both participants and investors in the industry must correct their mentality and not have the mentality of getting rich. For project initiators, don’t just grab investors’ money just because a new hot spot pops up; Will take over.

The new hot spots this year are IEO, "resonance currency" and quantitative transactions.

Since the rise of IEO at the beginning of the year, I have analyzed some typical projects launched by large exchanges in my article, and clearly pointed out that they have certain technical advantages, but the prices of many coins are ridiculously high as soon as they go online, and they are far overdrawn. its investment space. Later, I wrote a special article summarizing the IEO projects in the first half of the year. The data showed that the rate of return of these projects was almost horrible.

For resonance coins, from the very beginning, I suggested that everyone not participate, and pointed out to readers that this is a disguised form of deceiving investors to exchange mainstream coins in their hands for some worthless air coins. This is true for some projects that resonate with Bitcoin and Ethereum.

Regarding quantitative trading, I once pointed out in an article that the world's top quantitative investment team has an average annual rate of return of only 73%, while some unheard of teams often claim that their average annual rate of return is several hundred percent. This is a typical scam and trap.

In addition, another important meaning of this passage is not to "hype" any currency, including Bitcoin. How to understand this? I think there are also two levels.

For air coins and return to zero coins, since they are worthless in themselves, hyping such coins is essentially a zero-sum game, either playing with the dealer, or cheating off-market funds to enter the market. Either way, the end result is a mess, with very few people speculating and cashing out, and the vast majority of people losing their money.

For Bitcoin, its value does not fluctuate in short-term prices, but in the long-term to hedge various risks in the real world, so it is a safe-haven asset in the long-term. For this type of currency, long-term investment is fundamental. For investors, it is necessary to "hold coins" instead of "hot speculation".

In fact, these viewpoints and operating concepts have been repeatedly emphasized in my articles. But there are always newcomers who will involuntarily fall into the traps of various new gameplays and various new air coins. The fundamental reason is the "psychology of getting rich" mentioned in this passage. As long as you completely abandon this mentality, you will naturally be able to insulate yourself from all kinds of traps.

There is a passage I like very much:

The acquisition of low-level desires depends on immediate stimulation; the acquisition of high-level desires depends on strict self-discipline; the acquisition of top-level desires requires suffering and loneliness.

This sentence also applies to the field of investment.