Time：2018-08-05 17:23:07
CollectionThe recent escalating Sino-US trade war seems to go on for some time. In March of this year, there have been some articles in the country to analyze the impact of the Sino-US trade war on the virtual currency market. But I looked through these articles and found that most of them were written from the perspective of investors in the secondary market, not from the perspective of innovative entrepreneurs in the blockchain industry. Hence, I wrote this article to analyze current situation.
The background of the Sino-US trade war is that the United States does not want to see the rise of China. However, the rise of China to be the world's second largest economy is obviously on the horizon. Therefore, this trade friction will last for a long period, and this medium- to long-term change is irreversible.
Under the traditional economic system, if China continues to compete with the United States market, it will inevitably lead to the vigilance of the conservative forces in the United States, from import and export trade, high-tech research and development, to financial and monetary policies, to curb Chinese development. However, the part of the virtual economy is an emerging field which the mainstream political and economic circles, the media, and the public in the United States have not yet been widely concerned.
For the first time in the history of humanity, the virtual currency industry has realized that the Internet can have native digital assets. The value of such digital assets comes from the economic cost of the physical world created by mining. Mining has unprecedentedly made digital goods to be scarce. Scarcity is value, and the value is the asset.
The value of digital assets is currently only in the imagination and depiction of geeks. Therefore, Mr. Buffett called it the "Ponzi Scheme", which is considered to be a low-selling and high-selling speculation. But in fact this value will be revealed in the next few years with the decentralized application infrastructure. Mining is not a waste of power resources (the contributor to global warm), but instead a violent institution (police, court, prison, army, etc.) to maintain credit in traditional state systems.
What exactly is the decentralized application? Bitcoin is a successful example of decentralized application and also is an example in the currency field. The Internet for the past 20 years has also been a decentralized application. However, in the past 20 years, the Internet has only served to convey information (including short videos, instant messages, and e-mails), but not to deliver value. Today's technology has developed from the layer of the protocols. The decentralized applications have the feature of scarcity, and the certification of these protocols is the valuable digital asset.
Returning to the topic the impact of the Sino-US trade war, I believe that the Chinese government can fully seize the rising opportunities of the digital asset industry and give more encouragement to the blockchain industry from policy to the economy, overtaking its enemy when the US government is still in the ignorance of digital asset regulation to surpass the traditional financial industry that the United States has built for hundreds of years with advanced governance concepts.
The blockchain industry continues to grow at a tremendous pace. It may assist China to rise to the parallel "Wall Street" in the virtual world through the innovation of technology and regulations within next 5 to 10 years to become the center of global financial operations. Obviously, the various P2P thunderstorms and the plethora of various pyramid scheme coins during this period of time have also caused the vigilance of the government's financial supervision. Therefore, this move can be said to be a double-edged sword. High-risk means high-yield and the key is to balance the risks and benefits.
Columnist Profile: Yin Jiansong, founding partner of campus VC, entrepreneurial evangelist, angel investor. He is Tsinghua x-lab entrepreneurial tutor and also the deputy secretary-general of and the investment and financing committee of the Innovation and Entrepreneurship Education Alliance of China. He is the author of "The Fun of Entrepreneurship" and "From Zero to Hero", and was the Microsoft Windows Product Manager and the general manager of IDG's strategic consulting firm In-Stat. In 1997, he graduated from the Maastricht School of Management in the Netherlands. In 1993, he graduated from the University of International Business and Economics with a major in International Finance.
(Source：ChainDD)
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