My Investment Turned into “Utilities”

■Global Public Chain

In 2017 I had Bitcoin, Ripple and IOTA.

I had Bitcoin since 2015 but I couldn’t be bothered with the scaling fight, so I decided to move on. Then I picked Ripple, and later IOTA in Q2, 2017. These were genuinely investment. I set for “buy & hold” ;)

After Segwit fork, I was partially back in Bitcoin. What I mean by Bitcoin here is to follow the protocol — BTC before Segwit fork, BCH before ABC fork and BSV since.

In the mid-August, 2017, I moved my investments from the traditional markets into Cryptos and evenly converted into these three assets, having thought that I was creating a nice diversity on my Crypto portfolio — Establishment, Technology and Anarchist Coins.

My understanding at that time was that these cryptos were the ‘platforms’ targeting for: Banking transactions — Ripple; IoT machine to machine transactions — IOTA; Decentralized cash transactions — Bitcoin.

I thought these would succeed in their fields respectively. It is funny to think back how I thought about it then.

Going through the “crypto-end” of 2018 though, I have finally learned some basics:

1. Bitcoin is not just a digital cash but a distributed storage and server as well.

2. Bitcoin chain is designed capable of being the next internet with the native currency equipped.

3. Only one public chain with its ledger will be used universally in the end.

4. A global public chain will cover all industries.

5. And a global public chain needs to:

a. Scale massively to be reliable for business utilities,

b. Have its base-protocol “set-in-stone” to be trusted by mankind.

On top of these, a global public chain must equip with a good philosophy in justice. A great business philosophy isn’t just good enough to be a global public chain.

I’ve converted all into Bitcoin from Nov 2018 through some time in the Q1, 2019. My confusion about “Crypto” was finally gone.

■Legality and Utilities Do Matter

I’ve also learned that the misconception has been circulating around in the Crypto space.

· HODL (never use!),

· Adoption (soon to be!),

· Decentralized (be independent from the governments!).

I call these HAD. These are useless and nothing to do with the 99.99% of people and businesses in the real world.

Unlike hedge funds, institutional investors are required to explain the rationality behind why and what they invest in. This means that new money will only join where the utilities are from now on. No new money for HODL. There is no such a thing like “anarchist institutional investor”. The “needs” of the anarchists had already been filled years back.

Coming from traditional financial markets, there is no difficulty for me to understand now that pre-mined tokens are securities, and crucially illegal. There are so many difficult steps to go through and pass before being considered as legitimate entities by governments and institutional investors.

■Can Shadow Economy Be Legal If the Mainstream Crashes?!

Gold and crypto bugs have been spreading the idea, traditional markets will crash enormously so the prices of their assets will go moon and will be world currencies. But I have to say this won’t happen.

The crypto market reminds me of Nikkei after its bubble bust in 1989. Apart from the great business potentials of individual companies, basically Nikkei has become zombie lived by the central authorities with enormous amount of the printed money directly buying up the assets.

Remember the Wallstreet saying, “Don’t fight Fed”.

This is very powerful in terms of keeping the market alive. I have to say that no enormous crash happens in the way those bugs have been wishing for, unless the central banking authorities start “hating” the politics and stop supporting the governments (This could be a scenario but it’s another story. I hope I could write about it in the future).

Well, pumping works legally in the traditional markets as there is no authority above it. In the case of the crypto market however, the pumpers, the fiat-pegged coins are well under the layers of laws. “Printing” new coins, pumping up the market and maintaining the prices of coins used in the dark markets is a full established shadow economy in a way.

We’ll see which comes first. The shadow economy gains enough political supports and be legal? Or the authorities and other political forces start seeing it as a public threat and act accordingly.

■Who Cares Crypto, Just Enjoy Your Apps Onchain!

So there is no other chain or distributed ledger that excels Bitcoin in terms of the scalability, legality and decentralization in its base-protocol level. From venture projects to enterprise businesses, Bitcoin is the choice to build their business applications on.

Super fast peer-to-peer transactions while massively scaling. Very cheep transaction fees that are even getting cheaper as more utilities happen. And they are happening. It’s a matter of time we enjoy those applications without realizing they are running on Bitcoin.

With BSV, Bitcoin is fun again!