My Investment Experience: How I Established My Judgment Logic and Framework for Projects

When I first entered the field of digital currency, I had a poor understanding of many tokens. Like many novice investors, in addition to Bitcoin and Ethereum, I also invested in a lot of other tokens: steem, BTS , Ripple, Litecoin, Stellar, BCH, EOS, Bytom, Ontology, Quantum, Nebula, Verge, Monero, KCASH, etc. There are no less than 30 kinds of tokens.

For these tokens, I also use the long-term fixed investment method, and have never done a short-term game.

However, if you want to use the long-term fixed investment method, you must first judge the value of a token. But with so many tokens in hand, not to mention the scattered funds, and it is difficult to manage. More importantly, I think that there may be no more than 5 of these tokens that are ultimately valuable, so most of the tokens I bought Might end up being worthless.

So how to judge the value of these tokens?

When I entered this field, the development of digital currency was still in its infancy, and the application scenarios of many tokens were far from being discovered. How to judge the value of a token?

I think about it carefully, and based on my conditions back then, I think there is only one most practical and reliable method: read the white paper and source code of the token.

At this time, I was very lucky to use my professional knowledge. Since my major is mathematics and computer, I didn't find it difficult to read the white paper and source code of the token.

So with so many coins, where should I start? Then start with the boss Bitcoin and the second Ethereum.

So I spent a lot of time reading the Bitcoin white paper, Ethereum white paper, and Ethereum yellow paper several times, and calmed down to read the source code of Bitcoin and Ethereum to understand the source code structure and Framework, I have a preliminary understanding of Bitcoin and Ethereum technically and logically.

In order to deepen my understanding, I also briefly read Satoshi Nakamoto's early speeches in the forum and V God's various important papers, which deepened my understanding of blockchain, Bitcoin and Ethereum.

During this process, I was particularly impressed by the word "decentralization". I've been thinking what is decentralization? Is decentralization necessary? Why is decentralization needed? What should be the relationship between decentralization and security and performance?

When I saw Satoshi Nakamoto annoyed BM in the forum and said that he "doesn't understand what decentralization is at all", the interest in decentralization reached its climax, and the understanding of decentralization seemed to be at that moment. There has been a great improvement.

I am even more curious: why did Satoshi Nakamoto comment on BM? Is Satoshi Nakamoto's words out of anger or the truth? If BM's understanding of decentralization is biased, then his project will inevitably reflect this bias in understanding. Then how to see if his project has such a deviation, and how to discover BM's understanding of this point?

The way I think of is still to read the white paper. More importantly, I own the three BM projects STEEM, BTS and EOS, so my interests are closely related. So I have to read the white papers of these three projects carefully again.

So I found the white papers of the three projects of STEEM, BTS and EOS to read. I first read the STEEM white paper. Based on my knowledge at the time, I didn’t think there was any problem after reading this white paper; From a passage in the white paper, I found BM's understanding of decentralization. I confidently think I finally understand how BM sees decentralization.

Next, I read the white papers of STEEM and EOS according to my understanding of BM’s ideas, and I am more convinced that I know BM’s ideas, and I think that BM’s understanding is quite different from that of Satoshi Nakamoto.

I also understand why Satoshi Nakamoto is angry at BM. As a result, I came up with a view that was different from many people in the circle at that time: EOS must be taking a detour, but this detour will only be seen by everyone after a few years.

Regarding this "disrespectful" thought, I just shared it with a few friends in the circle in a low voice, but their eyes and faces were full of deep doubts.

But I did not hesitate to throw away the three BM projects STEEM, BTS and EOS - just like Buffett said: When you don't like a company's stock, don't keep it in your hand for a moment.

Careful reading of the three projects of Bitcoin, Ethereum and BM allowed me to establish my own preliminary framework and logic for the judgment and understanding of blockchain projects.

Since then, when I use this framework and logic to look back at the white papers of other projects, I feel like walking on the ground, thinking that they are of limited value without much effort, and throwing them away without reservation.

Later, with further changes in my thinking, I screened again, and finally only Bitcoin and Ethereum were left.

So far, all the ICO projects and other altcoins I have invested in have been emptied, leaving only Bitcoin and Ethereum.