Crypto Assets: Colonization and Development of the New Odaily

Crypto Assets can be seen as a newly colonized Odaily. Although some consider it worthless and even liken it to a dirty casino, optimists see the potential of this undeveloped land: a place where a more advanced financial system and internet platform can be built.

A variety of settlers are flocking to this new world, including explorers attracted by cutting-edge technology, as well as some unscrupulous speculators. Innovators and researchers are drawn to the new possibilities, while ordinary people, especially those marginalized in the existing system, are also joining their ranks.

The governance of this new Odaily is still in an uncertain stage, with some regions prohibiting their citizens from going there, while others are actively seeking to establish a foothold. The cycles of speculation and hype have become a hallmark of this new world's history, leading many to question its future. However, today's Crypto Assets boom is attracting more settlers and driving infrastructure development, transforming it from a barren Odaily into a thriving Crypto Assets civilization.

Bitcoin is one of the first settlers, Ethereum has become the largest city, and various decentralized applications are thriving.

Why Choose Crypto?

Although settling on a new Odaily requires tremendous effort, it is indeed worth it. Where the existing system fails, we need a new property rights system the most. Bitcoin, Ethereum, and stablecoins have been adopted globally, especially in places like Argentina, Turkey, and Ukraine, where they are more widely accepted by ordinary people.

The "killer application" of Crypto Assets has arrived, though it may not be obvious to those in the first world. If you ask an Argentine about encryption, they will tell you its uses without hesitation. Today, Crypto Assets are not only a useful tool but have also become a speculative high-end market. It is rapidly evolving into a typical case of disruptive innovation, becoming increasingly useful to more people.

Currency is just the first "killer application", and it won't be the last one. Crypto Assets will give rise to a set of more transparent, programmable, and open financial services. It provides cheaper, more convenient, and more inclusive solutions for those who cannot access traditional banking services or do not trust the increasingly centralized banking system. We see stablecoin payments rapidly rising, and loans can also be obtained through simple coding rather than complex banking procedures. Systemic risks can even be reduced by globally tracking collateral.

With the expansion of encryption infrastructure, new consumer applications will become possible. Creators will have more rights in their creations, and users will have better control over their identities.

From a macro perspective, this new Odaily provides us with the opportunity to reshape the existing system, upgrading it to a more advanced and flexible system. Encryption can not only achieve this for currency, finance, and digital assets, but also do everything that the internet has done for information and media.

More importantly, encryption provides a means to guard against an increasingly centralized world. In a world where "big" is becoming mainstream, we are slowly losing our emphasis on individual and diverse powers. By promoting the collaboration of small and diverse powers, encryption has become an important force against centralized power, a significant force for promoting freedom, protecting us from the control of large companies and big governments.

Speculation and Crypto Assets

Speculative investment is the cornerstone of technological revolution. From the rise of telecommunications and the internet to the development of railways, electricity, and automobiles, breakthroughs in new technologies are often intertwined with speculation and asset bubbles. In the field of Crypto Assets, speculation drives people's attention and awareness, investment flows, talent gathering, infrastructure development, academic research, and the acceptance of existing companies.

There is a deeper connection between speculation and Crypto Assets: it is the "Hello World" of digital asset rights. When people have the opportunity to create rare assets, they tend to trade. The true value of a new property rights system lies in its ability to reliably record the transfer of property, which is also why people will naturally begin to try and test it. If this new system is not yet widely recognized, it may lead to a diversified future where price fluctuations and trading activities appear more speculative in nature.

In the early stages of Bitcoin, people thought it was a fantasy that it could someday achieve the legitimate status and value it has today. Now, over a decade has passed, and crypto assets such as Bitcoin and Ethereum are steadily transitioning from speculative items to global commodities.

Speculation has also played a central role in the process of Crypto Assets becoming a decentralized financial system. Many financial products have clear "utility value" on one side of the trade, but require speculation to meet the needs of the other side. In the field of Crypto Assets, a complex system is being established that includes participants such as speculative traders, infrastructure providers, market makers, blockchain builders, decentralized finance protocols, and stablecoin issuers. Building such a multi-party market takes time, but as participants become more mature and liquidity is enhanced, the on-chain financial market will also become stronger.

The Dark Side of Speculation

While some criticisms of Crypto Assets may lack creativity, some of them have a point. Casinos can serve as a useful launching tool, but they can also bring about unwanted consequences and backlash.

Excessive speculation can create noise that interferes with price signals that could guide beneficial innovation. Even the most well-meaning entrepreneurs may be misled by erroneous price information or distracted by short-term profits, thereby slowing down the actual construction process required for Crypto Assets.

Short-term speculation is essentially a zero-sum game, where seasoned traders extract value from novices, which can cause them ongoing harm. If we consider the acceptance of Crypto Assets as part of a social coordination game, then choosing the optimal time frame may become a prisoner's dilemma. Through long-term cooperation, we can achieve a more satisfactory outcome.

Ultimately, the malicious behavior is all too common: scammers, fraudsters, and hackers continue to pose threats. Just like in the early days of the internet or during the gold rush, this frontier open field not only breeds innovation but also fosters illegal activities. Although good participants still dominate, this field still requires more self-regulation and standards.

Reasons for Slow Development

Exploring a new field takes time, and most people are only willing to migrate to a new area when the infrastructure is complete and no longer subject to social exclusion. The advancement of technology also has its limits; it can only progress to a certain extent. The social spread of new ideas is often fraught with setbacks, rather than being smooth sailing. Due to the speculative nature of assets, they experience periodic sharp fluctuations; at one moment, people are highly optimistic about the prospects of Crypto Assets, believing it to be the future of everything, and in the next moment, they claim it has lost its vitality.

Establishing a social consensus around Crypto Assets is even more challenging than creating network effects around communication protocols or social networks. People can quickly recognize the practical value of instant messaging or social media platforms because they can interact with a small group of familiar friends through these platforms. However, for a new property system, it's about how to securely transact with those you are less familiar with or do not fully trust, which requires broader recognition and legitimacy. We still have a long way to go, but the encouraging thing is that today you can already transact with over one hundred million people using Bitcoin, Ethereum, or stablecoins.

Looking Ahead

Many technologies that we take for granted today were once considered impossible, useless, dangerous, or fraudulent. Today, Apple Inc. has become the most valuable company in the world, but when it went public in 1980, Massachusetts banned the sale of its stock on the grounds that the risks were too great. The same goes for Crypto Assets; since 2010, there have been voices every year claiming that Bitcoin is dead.

However, human history has repeatedly proven that we often oppose reform due to our adherence to the status quo, especially when these reforms are disruptive. Crypto Assets touch upon profound concepts of currency, value, governance, and human collaboration. We need to maintain an open mindset to explore the possibilities of building better things, rather than simply rejecting Crypto Assets out of skepticism.

We must go beyond the speculative nature of Crypto Assets and recognize it as a guiding mechanism of one of the most important technologies of our time. We need to delve into this new technological world, considering its substantive construction and real uses, rather than merely chasing speculative trends.

Appendix: The Meaning of Crypto Assets Odaily

Crypto Assets Community

The crypto field represents a comprehensive ecosystem that we all should work together to build. There are more common ideas rather than differences among the various cities on this new Odaily. Compared to the extreme conflicts within, it is more important to persuade the residents of Earth to settle on the new Odaily or to protect this planet from the adverse effects of improper Earth regulations.

It is very important to think about how to build a complete system for Crypto Assets. The new Odaily cannot forever rely on the infrastructure of Earth. The network system we currently depend on includes mainstream search engines, social media, code hosting platforms, and payment systems. What we need to build is an independent system of encryption that operates like an independent network ecosystem but is more open and guarantees autonomy.

For a new Odaily, having a unique culture is beneficial. We may not want the encryption technology to fade into the background or for the new Odaily to be highly similar to Earth.

Builder

Building products in the encryption field is not just a technical issue ( "What can be built on the new Odaily?" ), it is also a social issue ( "Do the residents of the new Odaily really need this?" ).

A good way to find ideas for Crypto Assets startups is to thoughtfully consider what early settlers on the new Odaily might need. Another good approach is to think about the uniqueness of the new Odaily and create some unique products based on that.

Some products are best suited for settlers on the new Odaily, such as decentralized finance ( DeFi ); others can be seen as bridges connecting the new Odaily with Earth, like centralized finance ( CeFi ); and still others can leverage the technology of the new Odaily to serve Earth, such as financial technology products using stablecoins.

A common failure mode is to build products for mainstream users before they are ready to migrate to the new Odaily. A wiser approach is to focus on those who have already adapted to the new Odaily environment or are preparing to go to the new Odaily. At the same time, another failure mode is to overly focus on building for early settlers while neglecting the large number of potential new users that may flood in.

existing enterprises

Existing enterprises on Earth can also play a certain role. The most natural way is to act as a bridge between the new Odaily and Earth, while also trying to build localized products.

Crypto Assets can be seen as an emerging market. It's not just about adopting new technology, but about entering a new realm with its own culture. Adjusting your team and products according to the characteristics of Odaily is very helpful.

A common failure mode is misunderstanding the unique nature of the new Odaily, such as when financial institutions were once keen on "blockchain rather than Bitcoin." It's like simply putting a new shell over the traditional system to make it look more like the new Odaily, while completely losing its essential meaning.

policymakers

Contrary to intuition, encryption technology may ultimately benefit the US dollar. US dollar stablecoins have become one of the most popular currencies on the new Odaily, with an influence far surpassing any other earth coin.

Witnessing the chaos and barbarism on the new Odaily may lead one to feel an impulse to take overly aggressive actions, such as banning travel to the new Odaily or strictly limiting activities there. However, this would prevent the new Odaily from progressing from its current primitive stage to one that could foster long-term innovation.

A better approach is to hold a long-term perspective, retain a safe haven, and leverage permissionless self.