History raps again without rhyme: Bitcoin incorporated by finance meets the Z era of gamification (Part 1)

Moderator: What is Dogecoin?

Teacher Ma: Digital currency...encryption...%**#*&

Moderator: Oh. What is Dogecoin?

Teacher Ma: Digital currency...encryption...%**#*& Moderator: Yes. I know it's a dollar, but what is dogecoin?

Teacher Ma: As I have already said, digital currency...encryption...%**#*&

Moderator: So it's a hustle?

Teacher Ma: Well, it’s a trick. To the moon!

This is a performance by Mr. Ma (Sike) on the Saturday night show. The main plot is that he is constantly asked "What is Dogecoin?". I simplified his answer to "digital currency...encryption...%**#*&" - which is probably what it means. A thousand people have a thousand interpretations of this clip, depending on where you are and what you hold. But the same question can be asked endlessly about Bitcoin and any cryptocurrency:

The percentage of BTC supply that has been active-zce for more than 1 year recently reached a record high: Jinse Finance reported that Glassnode data shows that the percentage of BTC supply that has been active-zce for more than 1 year has just reached a record high of 65.857%. [2022/9/28 5:55:43]

What exactly is Bitcoin good for? What problems does it solve in the real world?

Apart from money laundering and transferring wealth out of authoritarian third world countries, what else is there for? Austrian economics social experiment? hard currency? new gold? Global reserve currency? A new type of digital rights? Hmmm...it's really frustrating for economists, anthropologists, historians, think tanks, and governments.

But is this really why everyone cares so much about Bitcoin?

of course not. The correct answer is "$50,000"—what, exactly, why, and what is it worth?

Now, if you lift your eyes fixed on the phone, zoom your cognition and the surrounding environment a hundred times, look out of the house, out of the city, out of the country, out of the earth, stand beside God, borrow God's glasses, and then go Look - Bitcoin is a human social experiment.

Data: The total value of Ethereum 2.0 deposit contracts hit a record high: On September 12, Glassnode data showed that the total value of Ethereum 2.0 deposit contracts reached 13,638,560 ETH, a record high. [2022/9/12 13:23:44]

All our discussions about it every day are part of this social experiment. At this moment, Satoshi Nakamoto and God should be smiling with satisfaction when watching the dry mouth of the most intelligent minds on earth arguing about it?

We reacted to ourselves every day and observed the reactions of other mice in this experiment. All reactions revolve around a core paradox-is this new thing going to be a "currency" that can be used in the real world, or is it going to be truly free, autonomous, and decentralized? Become the so-called "people's currency" by Mr. Musk? If it is the latter, the former must be sacrificed, and it is almost impossible to function in the real world and fulfill the ambition of replacing the existing monetary order. vice versa.

Santiment: The current correlation between Bitcoin and stocks is higher than the historical norm: On March 1, the encryption research organization Santiment tweeted that the current correlation between Bitcoin prices and traditional stocks is still higher than the historical norm. According to previous research, Bitcoin rallies tend to be more pronounced when this correlation turns negative, such as in December 2020. [2021/3/1 18:03:55]

Still have to compromise. The latest version of Uniswap (V3) simply established a main body to issue a "use license" to limit the use period of the source code, so as to prevent others from forking themselves and stealing liquidity from happening again - but with entities, it is still decentralized exchange? It seems not anymore.

This great innovation is so unknowingly standing on the opposite side of the blockchain open source philosophy.

Therefore, Bitcoin has become digital gold, whether it is active-zce or passive, in the final analysis, it is still unwilling to give up its original intention-at least this is worthy of respect.

Today in History | The French Finance Minister emphasized the importance of cryptocurrencies in the world economy at G20: On March 23, 2019, Taiwan's "SEF" planned the 2019 "SEF" in line with government policies and international developments this year. GoProS training plan", the first module course of this year's course content-zce planning is "financial technology investment transaction and risk management course", the theme includes virtual currency, etc., so as to cultivate professional talents of financial technology.

On March 23, 2018, at the G20 summit in Argentina, French Finance Minister Bruno Le Maire emphasized the importance of Bitcoin and cryptocurrencies in the world economy. Le Maire noted that France, like Germany, has demanded that cryptocurrencies be placed on the agenda of the G20. He revealed that France will carry out cryptocurrency regulation ahead of the rest of the world, putting Europe at the forefront of the digital economy. Like most world leaders, Le Maire believes that cryptocurrencies can be used for illicit activities, but noted that he firmly believes that the technology can have a positive effect on every country. However, regulations will be needed for this to happen, and Europe will lead the way. [2020/3/23]

God took the glasses back from the humans and commented:

The matter of "bitcoin" is actually an art, an elegant and fashionable art, which happens to sit at the intersection of money.

It is an expression of identity - this "identity" is not to replace someone, to subvert someone, and then become a new center, to become a global currency; but to be "autonomous", "positive", "change", "open" and "Resistance to the Oligarchs".

What is the "use" of art? It seems to be of little use to the real economy, with no cash flow, no real foundation, and no use case or application scenario. It has only one "story", and the interaction between "story" and society.

But without "use", there is no value, is there no need for existence? On the contrary, art is the most noble mission of you humans in this world. It can bring inspiration to the community, and only with free inspiration can we create different worldviews and values.

A good work of art is always valuable and will not "return to zero". It can have lasting value for thousands of years, because it is very scarce and will never be "used up". Therefore, the human experiment of "Bitcoin", as a performance art, will not return to zero, because it has value.

But the question is: how should this value be measured?

Well, the brain hole is closed, and now back to reality:

All the beautiful words and imaginations above have nothing to do with the bitcoins you see on your mobile phone, the bitcoins in the market, and digital changes.

In the real world market, bitcoin is just a symbol, a money maker; its price is an illusion, coming from the frenzy of the herd, not connected to any real world economic activity, just like gold is not connected to economic activity Same.

Bitcoin in the real world has been incorporated by the financial industry and has become a securitized casino chip—reflecting the price of Bitcoin. According to your preferences, you can choose big V shouting single-type chips; traditional exchange chips (ETF and futures contracts); investment bank private equity fund chips; It can be re-mortgaged and re-derived.

The only limit of the game is how long can all the stories around Bitcoin be told - "hedging inflation", "value storage", "protecting wealth", "hard currency", "money printers can't do anything about it"... ...The story is no longer listened to, and the game is almost done.

Sound familiar? This is the standard operation of securitization and leverage in the financial industry (especially Wall Street) in the past few decades-the targets are different.

In the matter of "innovation", there will always be the clever wolf totem and Wu Yong, as well as the fox and Cai Jing who arbitrage and disrupt everything (for those who are confused about this metaphor, please read this article). Teacher Shi Zhan also mentioned in the last excellent article: the early days of the great navigation era was also accompanied by rampant pirates.

What is the result of the rampage of foxes, Cai Jing and pirates? It is the handcuffs of the government, the machine of the state, the innovation of laying guns, and the sacrifice of freedom.

But history does not repeat itself, it only rhymes. This time is the same-unfortunately, it also encountered the rise of the grassroots generation Z.

(We will continue to talk about this non-rhyming rap sound in the next article)

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