[Opinion Column] Layout of nine major public blockchains in preparation for the eternal bull market

Original creator, Satoshi Nakamoto

Cryptocurrency investors may not even realize that they are angel investors. At this stage, investing in projects is basically the same as buying dreams, because all projects lack a clear profit model and cash flow. So even if you lose money, it's like paying for a dream. Just kidding.

What I want to say is that every project is still in the very early stages. Just because things are going well now doesn't mean there won't be any setbacks in the future. The current situation is very bad, but who knows, things might turn around. This is the charm of early investment, but it also means there is a huge risk in early investment.

That's why I always recommend diversifying your assets instead of going all in on one project. Because if you go all in on one project, you can't guarantee that this project won't encounter a black swan event in the future. Bitcoin can be an exception, but if you buy altcoins and go all in on just one, not only is the risk high, but you will also face a lot of pressure. I think those who have similar experiences will understand.

Yesterday, I read an article on ChainNews that detailed the investment layouts of top venture capitalists in Asia. Interestingly, 2019 was the year of DeFi for Ethereum, but these institutions didn't invest much in DeFi projects. Instead, they focused on public chain projects.

Why did these institutions choose to bet on public chains? Because the existing infrastructure of public chains is still not sufficient to support large-scale applications. In other words, the landscape of public chains has not yet been set. There are still many variables, and variables also mean investment opportunities. So today, let's talk about the opportunities of public chains.

BTC, the only value-storage public chain. Ethereum is striving towards value storage due to its decentralized finance attributes. Apart from these two public chains, all others are smart contract-based. The advantage of a value-storage public chain is that its value appreciation logic is very clear. People buy Bitcoin simply because they want to accumulate and hope for appreciation. That's value storage.

As the industry's benchmark and cornerstone, Bitcoin has the strongest community and consensus. If you don't understand other complex altcoin projects, that's okay, just buy Bitcoin. Because you'll find that at the end of a bull-bear cycle, simply holding Bitcoin without any action can outperform 99% of people. Everyone should at least buy a little Bitcoin.

ETH, the public chain moving towards value storage. 2019 was the year of decentralized finance for Ethereum. Just a few days ago, the value of ETH locked in the Ethereum DeFi ecosystem reached $1 billion. Its price has also increased by 50% this month. In the long run, the value of ETH locked in the Ethereum ecosystem will reach $10 billion or even $100 billion. Ethereum's decentralized finance is already showing a trend of dominance.

Many people question whether there is an increasing amount of ETH locked in the DeFi ecosystem, but it's not reflected in the price. Theoretically, there should be a price reaction, but it needs to reach a certain magnitude for this positive price relationship to be evident. Compared to the demand and circulation rate of ETH during the ICO craze, a $1 billion lockup amount is still too small, so there is no significant price response. Therefore, ETH holders just need to patiently wait for that tipping point to come.

BNB, Binance exchange's platform coin. The biggest characteristic of platform coins is having stable cash flow. Compared to other altcoins without profit models, platform coins are a very stable investment. In general, it's simplest to look at the platform's performance. If you believe in a trading platform, just buy its platform coin, it's that simple. As a leading exchange, BNB is definitely the top choice for platform coin allocation.

Platform coins are not blockchain/cryptocurrencies, they are internet plays focusing on traffic, moats, and users. There are no good platforms, only platforms that can make money. Many people are bound by cryptocurrency and idealism when looking at platform coins, but in reality, it's about who can master the internet play.

Cosmos and Polkadot, the cross-chain leaders. Cross-chain is a major investment direction for the next 2-3 years. One of the hot spots is the battle between the cross-chain giants, Polkadot and Cosmos. The competition seems intense, but in this fierce battle, they are actually mutually achieving success. In the competition, they have given each other greater consensus, and these two have already dominated the entire cross-chain race, creating a huge gap with all other cross-chain projects.

In fact, the relationship between the Cosmos and Polkadot projects is quite good. It's the community members underneath that are comparing whether Cosmos or Polkadot is more powerful. I personally think there is no need for such comparisons, and it's meaningless to discuss whether Polkadot's real rival is Cosmos.

For this investment track, it's quite simple, just focus on Cosmos and Polkadot. If you can't be sure which one will succeed or if both will succeed, it's best to allocate to both. Don't fuss around, once one side starts to establish a monopoly position, continuously add to the monopoly side to achieve maximum profits.

Tezos. Tezos' advantage is having a lot of money. It was very fortunate to benefit from the ICO boom, raising a huge amount of funds, holding $600-700 million. And because there were fewer competing projects at the time, it was once seen as the successor to Ethereum, giving it a strong community and consensus globally.

With $700 million in funding, it's difficult for any project to compete. With the recent bull market earlier this year, I estimate the team's funding reserves have also increased to around $1 billion.

Tezos is currently the only public chain project without progress updates or a timetable. Perhaps it doesn't even need progress. Holding $700 million, it may find in a year that the entire industry has made little progress, but its foundation's funds have increased...

If Tezos spends reasonably and conservatively, it probably has a high chance of surviving until the next bull market. Not dying is a prerequisite for success. Because Tezos has too much money, it can exchange time for space and grind other public chains to death.

The concept of STO was popular in China in 2018 for a while, but it quickly faded after a brief hype. However, this doesn't mean STOs have failed. In fact, STOs have been making progress on Tezos. There are already 3-5 STO cases on Tezos, with real estate securities in the US and France planning to be issued on STO. Some say STO is a false proposition, but that's not the most important thing. The important thing is that Tezos has become synonymous with STOs. It is a STO chain.

Tezos is still worth investing in: global community, strong consensus, and abundant funds. With just these three points, it beats the 20+ public chains that are about to launch in 2020. There are not many large public chains that can achieve all three points at the same time.

Nervos, the strongest domestic public chain. Although the Nervos team doesn't want to be called the strongest domestic project, I believe that's how most players in the domestic cryptocurrency circle see it. The Nervos team has previously focused on the Ethereum ecosystem, and CTO Jan has been involved in Ethereum development, making them rightfully the strongest in terms of technology.

About the Nervos project, I'll first quote an institution's evaluation of Nervos:

NervosCKB's valuation has been the focus of criticism. But regardless of the technical route, I really like the layered design, and the operation in China is deeply experienced by everyone, and after this financing, I hope to spread more widely, and the team is also a big plus, the community culture is naturally maintained by PoW distribution, the Token mechanism CBKdao, GAS leasing, support for non-CKB as a fee, all are very distinctive features of the project, overall strength, personally I think it's still very outstanding. But indeed, there is no stock that won't be sold, only a price that won't be sold, there is always a valuation, it depends on how much you think this is worth. After the detailed announcement of NervosCKB, the valuation part has been controversial, but there is no need to be blind and deny everything.

I want to talk about Nervos from the perspectives of valuation and community.

First, valuation. Compared to big projects like Cosmos/Polkadot/Tezos with valuations in the $1 billion range, Nervos currently has a circulating market value of just over $80 million, not even reaching $100 million. From an odds perspective, it's actually quite large. Of course, this is just my personal judgment. After all, many people still think Nervos' current valuation is too high.

Additionally, the difference between institutions and retail investors is not significant. Although since its launch in November last year, the CKB price has halved, and on some days even large holders dumped and pushed the price below the private placement price, it quickly rebounded above the private placement price. Compared to projects with unreliable private placement price levels, Nervos has a cost advantage.

Secondly, the community. Another advantage of Nervos is that it has a strong Chinese community, which other projects lack. Nowadays, most projects are listed on exchanges without any community, consensus, or even basic community, leading to endless declines.

Filecoin, the leading project in the decentralized storage race. In 2017, it raised $250 million and plans to launch its mainnet in 2020. Filecoin is expected to drive the entire decentralized storage race. As investors, the first thing we need to understand is that Filecoin and IPFS are two different things.

IPFS mainly complements or even replaces the Hypertext Transfer Protocol (HTTP) on the internet. Filecoin acts as the storage layer and incentive layer for IPFS. The IPFS ecosystem is very strong, with over 5 billion files uploaded to IPFS, and over 100 blockchain projects using IPFS to store data and files, making it an essential infrastructure for decentralized networks.

I would place Filecoin and Tezos at the same level. There aren't many projects in the distributed storage track, and before this, many were MLM projects disguised as distributed storage projects. If you believe that IPFS will become the foundation of the Web 3.0 era, then don't miss out on Filecoin.

Chainlink, the strongest oracle in the cryptocurrency market. I believe everyone is familiar with Chainlink. Chainlink's daily work involves collaborating with various coins and is often jokingly referred to as the "plug coin" that plugs into other projects. One of its highlights was announcing a partnership with Google.

This coin is from a foreign forum called 4chan. You can think of the 4chan forum as the Bitcointalk of the West, but even more pure, as it's a forum entirely filled with shilling, without any rational project analysis. In this forum, where people shill all kinds of coins, 99% of the time, the content is dominated by Chainlink.

Chainlink is a grassroots coin that has successfully transitioned to the mainstream. This is not an easy feat. It's also very profitable, with returns exceeding 30 times compared to Bitcoin, Ethereum, or fiat currency.

Some say, "I'm not buying LINK, I'm buying postmodernism, a symbol of meme culture. Meme culture created Bilibili, and I believe it will also create Chainlink." I strongly agree with this statement. Buying a coin is not just about buying the coin itself; the cultural attributes and community strength behind the coin are also crucial.

The Chainlink project provides us with an investment direction: choose projects with a cultural accumulation of meme culture.

These are the 9 projects I wanted to share. Excluding BTC and ETH, there are seven major public chains. Including BTC and ETH, there are nine major public chains. But that's not important; what's important is to quickly allocate to these nine major public chains and prepare for the eternal bull market.

After all, there isn't much time left for everyone to take over.

"Authorized translation by Jingzhen Satoshi, original article here"

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