In the current industry, "questioning Ponzi" is regarded as naive, and "understanding Ponzi and becoming Ponzi" has become the mainstream idea. This new work by Teacher Loki is like a beam of light shining into "Plato's Cave", reminding those who are deep in the cave. The encryption industry needs to collectively turn around and face the real world to solve real problems. (For details of the article, see "Returning to Growth Drive: How does VC Coin get out of the trap of narrativism?")
No matter how prosperous Ponzi is, I don’t believe Ponzi will be the crypto Endgame. No matter how exquisitely designed the Ponzi disk is, it is essentially a physical dissipative system that requires constant input of energy or matter from the outside to maintain its structure and function.
Looking at the Ponzi disk from the perspective of a physical dissipative system:
"Low energy consumption" energy = new investors' funds
The "ordered structure" of the system = the pyramid layering of investors
"Energy-intensive" waste = loss of money and loss of trust
Reduced energy quality = more and more new capital is required to maintain the same rate of return
Limited external resources = pool of potential investors is limited
Energy consumption accumulation = overall decline in market trust
Rising structural maintenance costs = increasing costs of attracting new investors
Just like any dissipative system will eventually collapse because it cannot obtain enough "low energy consumption" energy, the Ponzi scam will inevitably collapse when the new funds dry up. This is not an accident, but an inevitable result of the law of increasing energy consumption.
The encryption industry has reached today's level, which is inseparable from the early Bitcoin OG sermons and the subsequent efforts of top VCs such as a16z and Pentera to continuously create new narratives and construct new primitives. From the perspective of market theory, they are building markets on the one hand, attracting new investors' funds on the other, and then exiting during the bull market cycle. However, this "business model" has been involved to this day and may have reached the upper limit of this dissipative system. As an example, cryptocurrency penetration in the U.S. market has exceeded 20%.
The way to break the situation lies in the clichéd construction of projects that continuously innovate, improve efficiency, and create actual value. This is because continuous innovation, efficiency improvement and value creation can keep the system in a state "far from equilibrium". In this state, the system may produce new and unexpected structures and functions, further enhancing its sustainability.
Therefore, the encryption industry urgently needs its own "ChatGPT" to appear at any time. The recently popular PayFi, Consumer Chain, AI Agent with Crypto Wallet, Chain Abstraction and other new tracks are all new solutions born under such environmental pressure.
Of course, when evaluating the value of these projects, we need to reflect on the popular inherent thinking of technological determinism, background determinism, Infra worship, etc., and return to products and growth.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: "Foresight News"
Original author: NingNing
