My Belief in Bitcoin
A matter of faith
The initial intention of most people who come to this circle is to make quick money, so talking about "faith" is quite empty, but I actually have faith. In this article, I will just talk about my faith in Bitcoin/Stablecoin.
Regarding the interpretation of Bitcoin belief, there are a hundred different ways of understanding it, because it is related to life experience and the emphasis is different.
I went to Cambodia before the 818 gambling ban, when the real estate and land markets there were hot due to the abnormal prosperity of online gambling/fraud. I went to Phnom Penh, Poipet, Mokpai, and of course the later infamous Sihanoukville, which was full of Chinese investors and construction contractors. Looking back now, it was like the 1920s in the United States in "The Great Gatsby".
Everyone is imagining that this is the next Macau, the next Shenzhen. People still want to participate in that deformed, rough and vibrant environment. Of course, it’s a good thing that they didn’t get involved.
All of this collapsed after Cambodia banned gambling, but that’s another story.
Do you think I'm going to tell you about the urban legends of the big brothers in the park? No, and besides, I, a visitor, can't get in at all.
What amazes me is the country's currency and banking system.
The commonly used currencies here are US dollars, rupees and US rupees. The local currency, Cambodian riel, is like waste paper. If you use it to pay for a tutu car, the driver will glare at you.
There is no compliance or risk control in opening a bank account here. Anyone can open an account, and I heard that tens of millions of US dollars are transferred every day. In addition to transfers and even cash deposits and withdrawals, no compliance documents are required.
Friends living in mainland China may not understand this, but overseas Chinese should know how difficult this is for any other bank in the SWIFT system.
Other countries that have completely abandoned their local currencies include Argentina, Ecuador, and others.
How big is the underground dollar system here? I am not sure about the data for Cambodia, but according to the Tax Justice Network, there are about 8-10 trillion US dollars of assets hidden in offshore financial centers around the world, including Hong Kong, the Cayman Islands, etc.
In fact, this is the real upper limit of Bitcoin, and what is finally taken over is a portion of the offshore/underground US dollar system SOV (Store of Value) share.
Offshore banks may still freeze assets, or they may be removed from the SWIFT system/blacklisted due to compliance issues. If you have ever transferred money to Cayman/Gibraltar, you know what I am talking about.
Apart from its volatility, Bitcoin is an excellent choice for hidden wealthy people, such as gray market bosses/warlords, and there is no problem with capital circulation at all.
Because of the existence of PoW, in theory, big brothers can still exchange their wealth for computing power to mine new coins, and the new coins cannot be traced to any source (so the United States has compliance mining guidelines, and mining pools also have stricter KYC).
Like MEME coin, MEME coin has no valuation system. The reason for the increase is the reason for the increase. The higher the increase, the better the liquidity. The higher the increase of Bitcoin, the better the liquidity, the lower the volatility, and the larger the capacity of SOV.
But this demand has actually been diverted to some extent by stablecoins, because USDT/USDC is a wilder existence than Cambodian banks, although both of them can freeze the stablecoin assets on user addresses.
Does this change the fundamentals of Bitcoin? This is like a competition between companies. The market shares of Bitcoin and Stablecoin are different. Because competition is differentiated, Stablecoin is still constrained by compliance, so no one can kill the other. It is just a change in share per cent.
But will Bitcoin + Stablecoin replace the dollar business of traditional offshore financial centers? This is somewhat possible, because the competition in the underground dollar system is homogeneous. When young wealthy people replace the elderly wealthy people, the market share of traditional offshore financial centers will flow to the Bitcoin + Stablecoin system little by little every year.
Please note that what we are talking about here is the US dollar business of traditional offshore financial centers. There are many other businesses that cannot be replaced for the time being, such as entity establishment, capital gains tax incentives, trusts, etc.
Eventually, there may be an offshore free port that fully embraces digital technology. For example, the Hong Kong government obviously knows what kind of money it earns, and embracing it is also an effort, but...
I once thought that the most ingenious use case of blockchain was DAI/LUSD, which created unregulated underground US dollar credit in a decentralized way. Although the upper limit was constrained by the market value/liquidity of ETH, the value was too great. In Mile's words, how valuable is freedom?
Now Maker has been upgraded to what is essentially Sky, with an address blacklist and VPN access banned. This is a betrayal of the spirit of encryption after the team has cleaned up their act and retired.
At the time of the DeFi craze, ETH, which was still a PoW, actually had the opportunity to shift to a SoV positioning, but to say that this is historical nihilism now is just historical nihilism.
ETH is still a public chain, just as SOL is a public chain. Public chains have income, and with income there is a valuation system. A clear account is no longer a dream, and without a dream there is no market-to-dream ratio.
As for the "belief" in Shitcoin, I will write about it later. That is a completely different system. In fact, I have also written about it - "Better gray securitization."
Let me end with a passage from Wu Jihan in 2012. People judge a person’s character. He was able to write such a brilliant article at that time. There is no doubt that he is a very smart person with vision. Vision is a state of mind, not a function of eye:
Bitcoin has seamlessly embedded a virtual offshore free financial environment into the entire world.
The Bitcoin network is the Hong Kong, BVI and Macau of cyberspace. Buying Bitcoin now is equivalent to owning a building in Mid-Levels, Hong Kong.
Don't just see that there is nothing on the mountain except trees now, but see the skyscrapers lined up at the foot of the mountain in the future.
Savings accounts can be opened freely, depositors' identities can be kept confidential, transaction fees are low, no one collects taxes, trade and gambling are free, and there is strict monetary discipline.
Welcome to the Bitcoin network, the Internet's financial freeport, duty-free trade zone, and anarchist paradise.#小非农增幅创3年多新低 #非农就业数据即将公布 #BTC走势分析 
