2018 Digital Currency Investment Strategy
Every year in the investment market there is a hot breed, real estate in 2016, digital currency in 2017, what about 2018?
Can the digital currency market in 2018 continue the hot trend market in 2017? No one can predict, but the blockchain as a general trend is beyond doubt, and the trend has just begun. The market has a cycle, the trend is like a big river rushing into the sea, irreversible. What you have to do is be careful about the short-term cyclical effects, while keeping in mind the future, be sure to put yourself in the trend.
2018 digital money market, what should be the strategy? We will focus on two areas after combining the two major factors of technology development stage and market capacity:
· Blockchain protocol layer
· Blockchain / DAG + Internet of Things + Supply Chain
Blockchain protocol layer = 100X of the currency value
The blockchain has six layers (as shown in the figure below). The protocol layer includes data layer, network layer, consensus layer, excitation layer, and extension layer (contract layer). There are three main types of blockchain protocol layer projects:
· Hierarchical public chain platforms such as Ethereum, EOS;
· Middle layer protocols such as 0xproject, IPFS;
· Cross-links, such as Bytom, Polkadot;
Traditional Internet investment logic is application is higher than the underlying value of the agreement, the blockchain is the value of the underlying agreement is much higher than the application.
Digital currency investment in 2018, focusing on the blockchain protocol layer is still the best choice. At present, it is the time for the bottom layer of the blockchain to upgrade itself, it is still too early for the upper layer to be used in the real world. Only when the underlying platform technology and ecology are shaped, we can see high-quality Dapps emerge in batches.
In addition, the upper Dapp is easily replaceable, as long as the functional and marketing are done well, the new application is able to easily replace the old application. The underlying platform has strong technical and ecological barriers, regardless of technology for the time being, as applications and community ecology has grown, the platform will form a strong network effect. Once the network effect is formed, the platform can hardly be surpassed.
Analysis of agreement projects, first we look at technology, follow by a look at the ecology. Technical strength depends on the transaction speed, throughput, adaptability and other performance issues. Ecology consists of two parts: one is the number of applications of DApps, the other is the number and level of activity in the community. The community consists of global developers, investors, miners, businesses or institutions.
Please think over it, and we shall discuss this in the next section ~
Blockchain / DAG + Things = Future
By the end of 2017, the IOTA and VeChain tokens of “Blockchain + IoT” concept had soared, and the gains were much faster than other track projects. You think it’s a bubble, but it’s just the beginning.
According to Gartner, nearly 95% of machines in the world have Internet of Things by end of 2020. As IoT devices increase, between machines to machines, they need to go through a distributed self-organizing management model that is addressed by the distributed computing of the blockchain. Blockchain and DAG change the way things interact with each other, the first to change is the supply chain system.
Blockchain can completely change the way enterprises interact to solve the traditional business docking problems, such as electronic data interchange (EDI). If the supply chain involves three, four or even five companies, electronic data exchange technology to operate will be fairly complex. But if each participant can share the accounts, it will be more convenient. Each participant has a ledger that can be viewed at any time and therefore does not involve any electronic transactions. Electronic data exchange system will be gradually eliminated, because P2P is the trend of communication and exchange between enterprises.
- Jerry Cuomo, Vice President, Blockchain Technology, IBM
There is only a few project that combines Internet of things with the blockchain few. In 2018, I believe there will be a number of Internet of Things projects based on blockchain and DAG intertwining technologies. Pictured above is the nine “blockchain + IoT” project that I finished, which is suitable for long-term support? Which are suitable for latency now? Please think, we will explore this in the next section ~
Taking Rocket to reach the sea of stars
In 2018, three people practicing value investing using three ways of investing.
Person A: will invest in index fund
Person B: scheduled investing in GAFATA shares (Google, Apple, Facebook, Amazon, Alibaba, Tencent)
Person C: scheduled investing in Digital currency “blockchain protocol layer” and “blockchain + IoT” projects
Three years later, these three people will face completely different investment opportunities. Person A will take the horse carriage, Person B will take the train, Perons C will take the rocket.
If your journey is to the sea of stars, of course we need to choose to take a rocket.