What is the use of virtual currency? Which virtual currency will be the core asset?
I thought about it and the following three attributes are more important, the others are nonsense.
1. Eliminate the middleman, from one wallet to another, there is no need for a third party, or the third party has changed from a financial institution to a miner and a node.
2. Increase liquidity. The liquidity of legal currency has certain limitations, while the liquidity of virtual currencies such as Bitcoin and USDT is still very good, and it is easy to ship.
3. Privatization of property. The property is stored in an anonymous wallet account. Only you know your property, and it is difficult for others to monitor your property.
As for the other magical functions, I think it is just an excuse to get you to the gambling table under the pretext of innovation.
Which virtual currencies are the real core assets?
Now major exchanges are desperately listing coins, and there are thousands of coins of all kinds. Most of them cannot escape the fate of returning to zero. If you want to avoid returning to zero, you have to replace all the air coins and copycat coins with core assets.
Core assets in my opinion (first three layers)
First layer
BTC Bitcoin is a synonym for the currency circle, the only core asset, and the eternal hard currency
ETH is a synonym for technology, the next virtual currency that will be passed through ETF. All innovations in the currency circle are centered around ETH, and its consensus is unparalleled.
Stablecoins, such as USDT and USDC, are also very important roles in the currency circle. They have performed reliably for many years and are very safe to hold.
Second layer
Although the recent performance of old coins such as DOGE, XRP, and LTC is very average, the old coins that have been running for more than ten years will not return to zero. They are still stable. When there are favorable conditions, they may soar.
Third layer
BNB, OKB, BGB and other exchange platform coins, there are thousands of projects, but there are only a few large exchanges. Platform coins are their core products. As long as the exchange business is good, the platform coins will give you dividends continuously, which is the most reliable investment product for centralized projects.
The fourth floor
Luxury VIP room in the casino
New projects with high financing and strong technology have high risks at this level. New coins are constantly added every year, basically in a wave. No matter how good your technology is, new projects in the future will be stronger than you. So if you make money at this level, you must exchange it for more core assets as soon as possible.
The slogan of this layer is strong technology, strong dealers, very reliable, in fact, it will be zeroed.
Fifth layer
Casino individual guest hall
Thousands of ordinary virtual currencies, or virtual currencies with a market value of 100 or more are basically ordinary copycat coins. The excitement here is temporary and will be closed sooner or later (zeroed).
The slogan of this layer is that the market value is low, the dealer wants to pull the market, and ambush in advance. In fact, most dealers will only ship.
Sixth layer
Chess and card room in the community
Various memes for fundraising, various inscriptions, various inexplicable NFTs and some group friends' entrepreneurial projects are basically air. They can survive for a few days at the longest and G at the opening.
The slogan of this layer is to eat the first wave just after the opening. In fact, most of them are gone after the first wave.
Blue Whale Beichen concluded: The meaning of the existence of all non-core assets in the currency circle is to cheat you of Bitcoin and Ethereum. Only by holding the core assets can you get a steady stream of dividends!
