Value investment research theme for the next round of bull market: Fusion
Original author: Jerry, founder of ThePrimediaDAO
The topic of "where will the next bull market take place" has been discussed since the development of the encryption world, which can be traced back to the original intention of Bitcoin. However, what Satoshi Nakamoto did not expect was that the cryptocurrency not only failed to revolutionize the US dollar, but also made the US dollar the biggest beneficiary. In the encrypted economic system, mainstream stablecoins are based on the traditional US dollar as their currency system. The Federal Reserve does not issue a single currency, but has already included the encryption market in its hands, and has completed the iteration from "gold·power·dollar" to "power·dollar" and then to the encrypted world-"power·digital dollar". If there is no strong confrontation force, the era of "digital dollar" unification is coming.
After the hard work of the early builders of the blockchain world, the infrastructure of the encrypted world has been continuously improved, and the encrypted ecology is moving from being limited to investment/speculative attributes such as ICO, DeFi, and NFT to the level of industrial and financial integration. We judge that the key word for the next round of bull market is integration—the integration of web3 technology and the industrial ecology of many industries; the integration of encryption economy and the financial system of the sovereign world.
"Digital Dollar" leads halftime, but the center of encryption economy will not appear in the United States, why?
Ripple, which is committed to building a world-class open payment network under the repeated toss of the SEC, is struggling; Zuckerberg's ambitious Libra has been completely disintegrated under the pressure of US regulation; there are also a number of encrypted assets like BlockFi. The project is struggling to move forward under the supervision of the United States, and it may eventually collapse because a regulatory dialogue disrupted the development rhythm...
The U.S. dollar has become the biggest beneficiary of cryptocurrencies, and the U.S. government will not allow Ripple and Libra to destroy the great unification of the "digital dollar". Therefore, even though the technology and industry center of the web3 world may still be in Silicon Valley, the center of the encryption economy will not happen in the United States.
Then, where the center of the encrypted economy will take place is worth discussing, because it is related to the world financial structure and order in the era of encrypted economy.
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A little addition to "convergence": the fusion of DeFi and web3 non-financial use cases
After the development of the last round of bull market, "liquidity mining" and "vampire attack" have pushed the narrative of DeFi to the extreme. DeFi has expanded the innovative gameplay on the track, but the endogenous demand of DeFi should be expanded beyond the track up.
In the encrypted economic system, when DeFi is integrated into the web3 industry, the energy that blooms will deduce the narrative of the bull market in the encrypted market to the epic level of encryption. If the growth logic of the traditional financial capital market can only come from the main line of economic growth, DeFi can match the excess number of users and user funds in depth and breadth, showing unprecedented economic development at the exponential level.
To sum up, the theme of "convergence" in the next round of bull market includes three dimensions:
The integration of Web3 technology and many industries
Convergence of Encrypted Economy and Sovereign Finance
The integration of DeFi and web3 industry
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The necessity, feasibility and investment research value of adapting to the "public chain issued by the government"
A few days ago, the news of a small country issuing national tokens on TRON made people think of Sun Jue waving his scythe at the governments of small countries in the sovereign world.
It is obviously not the best choice to issue national tokens on TRON. In September, Norway announced the construction of a central bank digital currency (CBDC) sandbox on Ethereum, but this is the result of several months of deployment by Nahmii, the Ethereum expansion plan selected through a bidding process. It is obviously safer to issue government currency on Ethereum than on Tron, but this requires in-depth support from Ethereum, and it is difficult for a large number of small and medium-sized countries to gain attention.
Of course, would it be more fragrant to develop it yourself? China, Russia, Japan, and the European Central Bank are all developing their own, but a large number of small and medium-sized countries do not have such capabilities.
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The role and function of NFT in "the fusion of encrypted economy and sovereign finance"
When the construction of the national token system of most sovereign governments is completed, identity/asset rights are confirmed through NFT, and the integration of sovereign world assets and encrypted economy is realized. Bitcoin cannot solve the problem of "currency over-issuance and personal wealth assets in the U.S. dollar local currency system." The contradiction between "shrinking" is expected to be resolved. Regarding the basic functions of NFT in the blockchain world, I had an in-depth exchange with Element founder Wang Feng in July 2021. For details, please refer to "NFT's Metaverse Basic Construction Role and Value Capture Logic".
ThePrimediaDAO will launch a series of forums on Discord's new function forum with the theme of "Looking for the next round of bull market integration". The first stop will be "Integration of Encryption Economy and Sovereign Finance" to jointly discuss "public chain, Value investment research opportunities brought about by NFT, DeFi, and the reshaping of the financial order of the US dollar local currency system.
The vision of ecological co-construction: In ThePrimediaDAO, complete content creation through division of labor and collaboration and discover good projects through content; jointly build an encrypted ecological tree (TPLink) and commit to efficient collaboration between linked projects to empower encrypted ecological prosperity.
