A small opportunity in the rise of the Bitcoin ecosystem that you should seize!

First, we need to briefly introduce the background and consequences of the rise of the Bitcoin ecosystem, so that everyone does not feel confused. There is a landmark event regarding Bitcoin that every novice understands, which is the halving of blocks, almost once every four years. This cycle is closely related to the bull and bear cycles we mentioned earlier. Although the timelines do not overlap, the market's supply and demand relationship will always affect prices. Of course, this is not the focus of our discussion today. Halving reduces supply and may have a positive impact on BTC prices, but it also creates a significant issue that affects the stability and prosperity of the ecosystem: miners' income will decrease, which may lead to instability in the underlying BTC network. Therefore, we see that the prosperity of the Ordi protocol provides diversified income forms for miners, which helps increase miners' income and ensures the stability of the entire network. However, too much inscription transfer can affect the efficiency of the BTC network. Thus, some people in the BTC community believe that while inscriptions have created network prosperity, they are also network garbage, and in the long run, they do not solve one of the impossible triangle problems of BTC: scalability.

The birth of the inscription protocol has given people hope; it seems that the impossible triangle everyone thought existed has found a small breakthrough. As a result, various BTC Layer 2 protocols have emerged like mushrooms after rain. Today, I want to talk to you about this small opportunity, which is the well-established public chain Nervos Network, whose token is $CKB.

In fact, I mentioned CKB in my previous article as well. One day, it suddenly surged by 50% among many established public chains, and that day I began to pay attention to it because I wanted to know why. Sure enough, after checking the information, I found that it had integrated into the BTC ecosystem. In fact, many established public chains are trying to embrace the BTC ecosystem; it is both innovation and a form of self-redemption! Every chain has its unique technical advantages and is trying to make BTC better. The blockchain industry is gradually becoming more valuable through this continuous innovation. A bull market will bring a large amount of speculative capital that allows them to invest better in research and development. Once the ecosystem is prosperous, the space will be enormous.

In the DEFI field alone, the ETH ecosystem's staking rate exceeds 30%, with an asset scale of over $100 billion, while the BTC ecosystem only has $12 million. Just from this simple comparison, you can see that this ecosystem still has a thousand to ten thousand times the space. When BTC becomes active in an ecosystem built on a public chain like Nervos Network, you can imagine how huge the opportunities are here.

So from the day CKB surged by 50%, I saw this opportunity; of course, this is based on a judgment of better future expectations for the BTC ecosystem. There are many discussions online about what CKB's technical advantages are, such as RGB++, CELL models, etc. You can learn about them yourself; I won't go into too much technical detail because I believe most people, like me, don't understand it. I just know that we need to look at the big trends in investment. The rise of the BTC ecosystem is a major trend, and then we find suitable projects within this trend.

Of course, many of us may not look at it, but I think these points are of reference value:

1. Financing situation: A project needs to have money; without money, how can it pump? As a DAO community that has been around for a few years, we understand this more deeply.

Financing situation:

Nervos Network has raised approximately $100 million through two rounds of financing.

Seed round

In August 2018, Polychain Capital led the investment, with participation from Sequoia China, Wanxiang Blockchain, Blockchain Capital, and others. The amount was $28 million.

Series A

On October 16, 2019, Nervos Network completed its ICO on Coinlist, raising $72 million.

During the two rounds of financing, Nervos Network raised $100 million, and well-known investment institutions such as Polychain Capital, Sequoia China, Wanxiang Blockchain, and Blockchain Capital made significant investments in it. Nervos Network has attracted the favor of many well-known capital parties.

2. Technical indicators: No matter how good a project is, the timing of our entry is also very important. CKB is one of the few long-term bullish token projects among established tokens, and the trading volume has significantly increased, which is a signal of a bottom breakout.

3. Is there a major player with deep control? How to judge this? It’s about the 50% surge mentioned earlier. You can observe; if a coin can rise more than 50% in a day, there is definitely a major player with deep control, especially for POW-type mining coins like CKB. If it is producing every day without a strong player accumulating it, it will only continue to decline, spiraling down like other mining coins.

Of course, maybe someone will say, you're writing this for content mining.#CKB助力比特币生态CKB I do not deny this. Writing this article may indeed earn me some CKB rewards, and you can write as well; everyone can do it. However, my analysis and layout were done before this, with evidence to show. In the previous article, someone even said that holding CKB is terrible, so I don't want to say much more. Investment is always a personal matter; everyone should judge for themselves!