Editor’s Note: This article was translated from a news report regarding Eric Gu. Some words have been edited for clarity. The original article link in Chinese can be found here: https://mp.weixin.qq.com/s/ui5rG6mq2C-wG_LSQsMCYA
The bell of the Lunar New Year has just sounded, and the madness, miracles, trials, and tribulations of 2019 are in full swing. 2018 has accompanied the volatile blockchain industry from zero to one and also has witnessed the bursting of the irrational prosperity bubble. Some people lament that this short but wonderful period of time can no longer be copied or experienced again.
On the afternoon of February 23, the Ant Node Alliance launched an offline meetup with the theme of “Eric Gu — The Revelation of the Bulls and Bears.” Ant Node Alliance invited the CEO of the Metaverse Foundation to be the guest of honor at this offline event in Xiamen. As a pioneer of the blockchain industry, Eric shared his recollections, and combined with his personal experience, he told the story of the change in the blockchain industry from when he started in 2013 to today. The meetup was hosted by Jinse Finance, Ant Node Alliance, and Metaverse. Overall this event attracted nearly 100 industry media and blockchain enthusiasts to participate.
Brief Summary of Eric’s Background:
- More than 20 years of international work experience
- Bitcoin Foundation Lifetime Member
- Early blockchain adopter
- Founder of ViewFin
- Metaverse Foundation CEO
- First translator of “Blockchain: New Economy Blueprint and Guide” to Chinese
- Angel investor for early blockchain projects (Mastercoin, Ethereum, NEO, Bitshares, etc.)
- Prior to blockchain, served as senior project manager for the Ontario Government in Canada
At the meetup, Eric elaborated on his understanding of blockchain technology and some ideas for the future application of blockchain from multiple dimensions such as digital currencies, digital assets, and decentralized transactions. Here are three key takeaways:
1.) The bear market is coming to an end in 2019, but it does not mean that the bull market is on the immediate horizon.
In 2009, Bitcoin was born, and it did not have market value at the beginning. For at least one year after the initial minting, Bitcoin was not used for business. In May 2010, a programmer exchanged 10,000 bitcoins for two pizzas, and Bitcoin was given value for the first time. In the next decade of ups and downs, the bulls and bears have tugged back and forth. There is a consistent cycle, once every 4 years, so the bear market is coming to an end in 2019. This, however, does not mean that the bull market is coming.
The bear market is over to warn everyone in this industry: In blockchain, we cannot always dream of glory. We have to maintain a high level of work in the face of the winter, to prepare for the rainy days, and to ensure peace of mind long-term by setting the proper foundations early.
2.) Is the rumor of “Bitcoin issuance” credible?
The Bitcoin issuance rumor is in full swing. At the round table with Satoshi Nakamoto, an outside developer named Matt proposed to stop the Bitcoin halving mechanism: The reason for this is that in the process of halving Bitcoin mining rewards multiple times, the reduction in miners’ fees will lead to a sharp drop in miners, which may cause the Bitcoin network to face severe 51% attacks.
For the Bitcoin additional issuance, Eric believes that there are three roles that can affect the development of Bitcoin:
- Bitcoin’s core code developers
- Bitcoin transaction network maintenance staff — miners
- Bitcoin investment community
These three parties belong in a mutual supervision and mutual restraint relationship. At present, there are some disagreements about the development of Bitcoin, and some people from the community have raised concerns about the mining rewards halving every few years. In the face of these voices, however, Bitcoin’s core developers have no interest in responding. So, is the rumor of “Bitcoin issuance” credible? Eric believes it is not, due to the fact that the core developers would need to align with the miners. So far from what he has seen from the standpoint of being in the Bitcoin Foundation, Eric does not see this happening.
3.) Build a value Internet and eliminate the “value island”
Metaverse is the first blockchain project in the original wave of the big bull market in early 2017. Digital assets are the core of their project, and digital identities (Avatar) and value intermedaries (Oracle) form a foundation around digital assets. Together, these three core features build the value of the Internet. By constructing the value Internet, Metaverse eliminates the imbalance between supply and demand brought about by the “value island,” an isolated ecosystem where value is not shared universally, thereby reducing friction and releasing economic vitality.
An interesting application scenario to keep in mind: blockchain + insurance. Using the data management under the blockchain, you can invest in your own insurance according to your own wishes and invest in the insurance that others want. For example: parents flying abroad to see their children graduate from college. Parents can purchase insurance for delayed flights, and everyone can participate in this type of insurance. If there is a delay in their flight, the parents can be compensated in digital tokens through the activation of smart contracts.
Disclaimer: This article is the author’s independent point of view and does not constitute any investment advice.
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