In January this year, Buffett bluntly said: “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending”.
The current blockchain circle seems to confirm Buffett’s original prophecy. Digital currencies have plummeted, blockchain media and projects can’t continue to operate. When it comes to blockchain, almost everyone thinks this is a scam.
Is there still a future for the blockchain? Of course there are.
The underlying technology of blockchain brought by Bitcoin has made people want to look forward to the world of value.
In the past, social and economic formations were centralized and monopolized. From a country to a small business, all operate around a centralized chain.
The concept of value transfer in the blockchain is eye-catching. People are not affected by centralization and are not deceived by false information. In the blockchain world, each action is not subject to any centralization mechanism, only according to the data on the chain (consensus, contract, etc.), and every output and input of value is based on consensus.
What is the easiest consensus among the knowledge that humans have learned? Not economics, not law, not politics, not chemistry, not physics. The easiest thing to reach consensus is mathematics. In the world of blockchain, we advocate “In Math We Trust, Code is Law.”
The blockchain gives us a world of value, and if it can be realized, the online world will be changed forever.
With the arrival of this year’s bear market, 70%-80% of the blockchain people have retired. It is not too much to say that it is a dark time.
So, how can the blockchain show its real value to the world?
As we all know, whether the concept of value transfer of blockchain can be truly realized, depends on both technical strength, and application scenarios. In developed countries such as the United States, blockchain technology is undoubtedly at the forefront, but their deep centralization of economic structure and developed economic system make the realization of true blockchain value extremely difficult.
In countries with loose regulations such as South Korea and Japan, the technical strength and application are not very prominent. Sealchain founder Marvin Zhang said: “Why is e-commerce doing so well in China, but not so well in countries such as the United States, Germany, Japan, South Korea, etc. Obviously, the most important thing is not technology, but the overall social environment.”
Looking back at the idea that blockchain builds value world, the expenditure and acquisition of all people’s behavior is based on Math and Code, and everything follows the principles of security, transparency, and fairness. It is designed to build a new, disruptive system.
So, where can the blockchain value world be quickly realized? It must be in the market with the strongest demand.
In other words, in which jurisdiction can the blockchain value world be achieved faster?
The Philippine central bank cited 2018 as an example. The Philippines is a young market with more than 60 million netizens. Due to cultural differences, local consumption habits are similar to those in the West. There is generally no saving behavior. Loan behavior is more common. More than 10% of the population will borrow from private lending institutions, which is twice that of the rest of the world. In 2018, the value of the fintech market in the Philippines will reach US$569.5 million, with a growth rate of 16.4%.
In 2017, the Philippines’ total GDP reached US$321.189 billion, with a GDP growth rate of 6.7%. It is expected that GDP growth will reach 6.8% this year and is experiencing an unprecedented period of rapid economic growth. At present, the penetration rate of smartphones in the Philippines is as high as 63%, and the annual growth rate of smartphone users is as high as 10%.
Although the Philippine economy is in a period of rapid development, the penetration rate of mobile phones has also increased year by year.
However, Philippine banking services penetration is low. Only 22.6% of the Philippine adults have a formal bank account, while the bank loan rate has reached 6.21% in August this year. This has resulted in more than 66% of the rural population of the Philippines can only borrow through civil institutions.
Sealchain, the world’s first financial public chain with built-in gold-based stablecoin, works with local licensed financial services organizations to help institutions solve borrower credit issues and provide a legal borrowing channel for borrowers without bank cards or identification. The lenders and the borrowers reach a consensus based on Math and Code to facilitate the transaction, and do not rely on any central organization, and facilitate transactions through value transfer.
Southeast Asian countries such as India, the Philippines and Vietnam, which have low bank card and credit card penetration rates, have strong demand for financial system construction. Therefore, the blockchain financial public chain built on this demand, can easier realize value transfer and build the blockchain value world.
The future is here, the Southeast Asian market will be the promised land for establishing the blockchain value world.
Article First Published here