From the perspective of Guo Degang's "elegant and vulgar" cross talk concept to see the relationship between Bitcoin and altcoins

In the current cryptocurrency world, Bitcoin occupies an absolute dominant position in terms of market value, computing power, and consensus. Even so, in the eyes of outsiders, investing in Bitcoin was a very low behavior, which formed a kind of investment circle."contempt chain". However, in this round of bull market, this phenomenon has changed.

In the cryptocurrency world, a relative"contempt chain"It has also existed for many years, that is, investors in Bitcoin despise investors in altcoins, or investors in mainstream currencies despise investors in altcoins. It can be said that this concept has been deeply rooted in the currency circle. And this"contempt chain"It is also right for established investors to new investors.

First of all, the author would like to ask three questions to the judges. What are Altcoins? Why Veteran Investors Love Bitcoin? Why New Investors Love Investing in Altcoins?

So what are altcoins? Of course, the answer to this question is different for everyone. In my opinion, altcoins refer to all currencies except Bitcoin, or all currencies except the mainstream.

In fact, the domestic division is relatively clear. Those with a little technology are called altcoins, those without any technology are called air coins, and those that are deceptive are called cx coins.

So why do established investors love Bitcoin?

Before answering this question, the author will take you to review the 5 bull markets experienced by Bitcoin.

first bull market

Time period: September 2010 --- June 2011, the duration is 9 months.

Bitcoin rose from US$0.06 to US$36, and then immediately fell to US$2.5, a drop of 93%, but it has not fallen below US$2 since then. Investors can still get a 38x return when they start buying in this bull market cycle. This stage is just hype in the hands of a few Bitcoin geeks.

second bull market

Time period: From October 2011 to April 2013, the duration is 7 months, and the Bitcoin output is halved on November 28, 2012.

Bitcoin went from $2 to $260, a 130-fold increase. Less than a week later, Bitcoin fell to $50, an 80% drop. The main bargaining chips at this stage are concentrated in the hands of East Asian retail investors.

third bull market

Time period: from April 2013 to December 2013, the duration is 8 months.

Bitcoin rose from $50 to $1,000 in December 2013, a 23-fold increase. After that, it fell all the way to $150 in January 2015, an 87% drop. But, while Bitcoin fell to $150, buying at the start of this bull market can pay off 2x. The main bargaining chips at this stage are concentrated in the hands of East Asian retail investors.

fourth bull market

Time period: From January 2016 to December 2017, the duration is 2 years. In July 2016, the output of Bitcoin was halved.

Bitcoin started to rise slowly from $400 in January 2016 to $20,000 in December 2017, a 50-fold increase.

In 2017, it took 10 months for Bitcoin to rise from $1,000 in January to $5,000; it took only 20 days to soar from $7,000 to $20,000, and the big bull market is often very short. The main bargaining chips at this stage are concentrated in the hands of East Asian retail investors.

Fifth Bull Market (Current Bull Market)

May 12, 2020 is the third halving of Bitcoin, which also contributed to the starting point of this round of bull market. The only difference is that Wall Street giants have replaced retail investors as the protagonists of this bull market.

Looking back at the 5 rounds of Bitcoin bull market, it is not difficult to find that most of the chips are concentrated in the hands of East Asian retail investors led by China and Japan. In each bull market, the floating income of Bitcoin from low point to high point is at least 20 times, which is an old-fashioned investment. One of the reasons investors love Bitcoin. After each bull market, in the next bear market, Bitcoin will shrink by more than 80%, but every time it stands up stubbornly, and every time it is the return of the king, with the bull market"wealth creation effect"Attract more leeks to enter the market and bring about a bigger bull market.

Of course, investors who have experienced multiple rounds of bull markets have already had good foresight and vision in the circle, and have traded bitcoins at various prices, which may also be the reason for their preference for bitcoin.

Secondly, with the rise of Bitcoin, more and more developers are joining in to carve up the big cake of the cryptocurrency investment circle. Zero, as the saying goes, if you are well-informed, you will learn a lot of wisdom, which is also the reason why veteran investors love Bitcoin and mainstream currencies.

Back to the question of new investors, why do new investors prefer altcoins?

Almost every round of bull market, created by the currency circle"wealth creation effect"It's all endless.

Just because we are currently in the information age with the rapid development of the Internet, the wealth creation effect of the currency circle is out of the circle and can be seen everywhere on the Internet"xxx invest in xx coins wealth freedom"、"xxx earns tens of millions by doing bitcoin contracts"Waiting for the news has attracted a large number of new investors to enter the market. Maybe even if you entered the market in 2017, the price of Bitcoin you bought was as high as $10,000+.

Once in 2018, the author had a few friends who wanted to invest in cryptocurrency, so they asked me"what currency to buy"? Since I am a Bitcoin holder and I don’t want to recommend altcoins (investment failure will cause trouble), I will answer"buy bitcoin". But they generally don't want to buy Bitcoin because it is too expensive, and they feel that the price is too high to rise much, so they all prefer altcoins.

Yes, new investors, more specifically, new retail investors, hope that"get rich overnight"。

The criterion for buying altcoins is just two words, odds. Whether it is a good coin is not important, as long as the altcoin can give you enough odds, it is far more important than whether the coin itself is a good coin.

Most of my friends at that time have quit the cryptocurrency circle now. I asked them why, almost the same, the investment air coins were cut. And they are almost all brainwashed by the propaganda of air coins:

The next-generation blockchain developed by a certain professor at a certain university for several years has a TPS of 8,000 times that of Bitcoin, 3,000 times that of Ethereum, and 100 times that of EOS, completely solving the impossible triangle of the blockchain.

ask them"What is TPS?", They couldn't answer it, but when they saw that the speed and performance were so much faster than Bitcoin, and the price was cheaper, they bought it as soon as their brains became hot. It also returned to zero holding the air coin. It was far different from their own expectations, and it dealt a great psychological blow to them.

evolution"evolution"for established investors.

The author here is not criticizing altcoins, some altcoins certainly have their investment value, such as leading products in various sectors. But to alert everyone, do not invest in air coins and cx coins, have the ability to distinguish right from wrong, and keep a clear mind.

Now let’s get to the point. I like listening to the cross talk between Guo Degang and Teacher Yu Qian very much recently. It can be said that I fall asleep listening to Lao Guo’s voice every night. Among the factions in the cross talk world, there are also mainstream cross talk and non-mainstream cross talk, and the opposite is the difference between actors inside and outside the system. Under the influence of this point of view, the majority of cross talk lovers subconsciously believe that actors in the system are sitting on stable wages, their creation and performance levels are seriously lacking and lagging behind, and they are unwilling to take the initiative to step out of their comfort zone. The private cross talk group is a typical example of self-reliance, relying on art to make the audience willing to buy tickets.

As for the mainstream and non-mainstream in the cross talk industry, at the beginning, it was just a joke from Mr. Guo Degang, just like what he called himself in the cross talk performance."non-famous comedian"Same, just for publicity purposes. However, with the growing influence of Deyun Club created by Guo Degang, just like"non-famous comedian"Similarly, non-mainstream cross talk has also become a label of Guo Degang and even Deyun Club.

It doesn't matter if Guo Degang gets angry, but breaking the audience's perception of traditional cross talk is the key. As a result, some cross talk actors who used to shine on TV programs panicked. Isn’t this ruining his job? Everyone has watched Guo Degang’s cross talk, who will listen to him in the future? How can you, a kid from other places, be able to ride on our heads? So they called themselves the mainstream cross talk, saying that Guo Degang's cross talk was three vulgar, three indiscriminate, did not meet the needs of building a harmonious society in the new era, and would be banned.

Thus, the "Falling Guo" operation began, and various methods came one after another, emerging one after another. Guo Degang did not show any weakness either. His biggest advantage is that he has a group of friends in the media. If you suppress me in a superior position, I will fight back in the media! Both sides come and go, each wins and loses, and it is very lively. The common people have also participated in the scolding war. Both sides have their own camps and attack each other.

Of course, the result of this battle between the mainstream and the non-mainstream is: Guo Degang became popular, and the fire spread all over China.

Guo Degang once ridiculed mainstream cross talk in his cross talk "I want to fight against the three customs", and I want to share a few words in it with you.

"Vulgarity should be as elegant as vulgarity, and elegance should be as vulgar as elegance. There is no clear boundary between elegance and vulgarity"

"Elegance and vulgarity are opposite, but also complementary"

"If there is no vulgarity in the world, then there will be no elegance"

Guo Degang responded that Zhou Libo is elegant when drinking coffee, and vulgar when eating garlic:"You can't compare people who eat garlic to vulgar just because you drink coffee, it's too narrow-minded!"

Cross talk is originally a market culture. From the Qing Dynasty to the Republic of China, how many people can read and write in the street performances? Some people say that ballet and opera are elegant enough, but if the audience themselves are ordinary people, they will also focus on the revealing attire of the actors when watching ballet or opera. Then Ya itself is contradictory.

Actually cross talk"elegance and vulgarity", the mainstream and non-mainstream are also the mainstream and copycats of cryptocurrencies.

The reason why the mainstream currency can become the mainstream is that the most important thing is that it has its own value, and it has been recognized by many people, that is, a high degree of consensus. Then it will definitely be reflected in the currency price. High price and large market value are the bright side of the cryptocurrency market."Attract foreign investment"golden signboard.

Altcoins have failed to become the mainstream, but include many different sectors, such as the original public chain with new consensus mechanisms, chain games, DeFi decentralized finance, NFT, etc., are actually reinforcing the entire cryptocurrency market, constantly developing and Improve blockchain technology. And in line with the low market value, if the technology is high and the marketing is good, its wealth-creating effect cannot be underestimated.

Therefore, the mainstream currency and the altcoin complement each other, and neither side is indispensable.

Are altcoins worth investing in?

Then think back to today's"second master"Ethereum was once an altcoin. Let's take a look at its historical K-line first.

The yellow line represents the exchange rate for Bitcoin, and the green line represents the exchange rate for USD. It can be seen that Ethereum once reached 0.15 of the price of Bitcoin, and the high point of this round of bull market is 0.07, which is nearly 2 times lower than that of Bitcoin. In terms of the price against the U.S. dollar, the price of 0.15 bitcoin is only $388 when it is converted into the U.S. dollar, and the high point of this round of bull market is indeed $4,000, an increase of nearly 10 times.

How much was Ethereum worth in the first place? Let's review the growth process of Ethereum.

In August 2014, Vitalik Buterin, a genius teenager, initiated the Ethereum project and publicly raised funds for a period of 42 days with a target amount of US$19.7 million, divided into three stages.

In the 14 days of the first stage, the exchange ratio of Ethereum and Bitcoin was 2000:1, but then the exchange ratio dropped to 1337:1. In the end, a total of 31,000 Bitcoins were raised and 60 million Ethereums were sold , at the exchange rate at that time, it was about 18.4 million U.S. dollars, and the unit price was around 0.4 U.S. dollars.

According to the announcement, 76.5% of the funds raised will be used for the development and expansion of the Ethereum platform and tools, 13.5% will be used for community services, and the remaining 10% will be used to support the development of the Cryptocurrency Research Group (CCRC). Research.

The development of the project was not smooth at the beginning, with many difficulties and pressures. For example, after the project party got the money, the project has been in a financially opaque state at the beginning, and there are many doubts from the outside world. Until September 2015, Ethereum founder Vitalik Buterin disclosed the latest progress of the project on the official blog. However, the bitcoin raised by the team caught up with the big bear market and suffered serious losses. The development experienced financial pressure, and even began to lay off employees.

In the one or two years after the project was officially launched, there were many voices on the Internet calling Ethereum a scam. Many articles analyze the characteristics of Ethereum as a scam from various levels. For example, in 2016, Mr. Bi wrote several articles on Babbitt, "exposing" Ethereum as a huge scam.

But the current success of Ethereum is obvious to all. The reason why Ethereum has grown to today's giant market value is because Ethereum provides a nearly Turing-complete computing environment on the blockchain, that is, it innovatively transplants smart contracts to the chain. As long as the calculation can be realized by the programming language, it can support it, which also lays a solid foundation for the application of smart contracts in a wider environment. If the development of smart contracts in the cryptocurrency field has reached an inseparable height, it will play a key role in chain applications led by DeFi. But as far as DeFi is concerned, smart contracts have supported a total market value of 70 billion US dollars.

This is also the reason why Ethereum can break through the title of altcoin and secure the second place.

Therefore, mainstream currencies and altcoins complement each other, and jointly created the cryptocurrency market with a market value of 2 trillion US dollars that we see today. I believe that in the near future, there will be more technological applications that will make blockchain technology and encryption The currency industry as a whole has gone to a higher level.

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