Crypto Assets: A New Odaily Being Colonized

Crypto Assets can be seen as a newly colonized planet. While some critics consider it a barren and worthless place, even just a speculative casino, optimists see its potential - a place where a more advanced financial system and internet platform can be built.

A variety of new settlers are flocking to this new world. There are explorers attracted by cutting-edge technology, as well as some unscrupulous speculators. Innovators and researchers are drawn in by new possibilities, and ordinary people, especially those who have been marginalized in the existing systems, are also joining their ranks.

The governance of this new Odaily is still in an uncertain phase. Some areas prohibit their citizens from going there, while others are seeking to find a foothold in this new world.

The history of Crypto Assets has been marked by cycles of speculation and hype, leading many to doubt its future. However, today's Crypto Assets speculative frenzy may just be a self-fulfilling process. Just as the Gold Rush of 1849 transformed San Francisco from a quiet village into a major port (which ultimately became a center of technological innovation), the current Crypto Assets craze is attracting settlers and promoting infrastructure development, turning it from a barren Odaily into a thriving Crypto civilization.

Bitcoin is one of the first settlers, while exchanges allow people to easily travel around this Odaily. Ethereum has become the largest city, with some decentralized exchanges being the best means of transportation.

Why should we choose encryption?

Settling on a new Odaily undoubtedly requires a tremendous effort. But is it really worth it?

In places where the existing system fails, we most need a new property rights system. Bitcoin, Ethereum, and stablecoins have been applied globally, particularly in countries like Argentina, Turkey, and Ukraine, where they are more widely accepted by ordinary people.

Although many people are still looking forward to the "killer application" of encryption, in reality, it has already arrived. However, for those living in developed countries, this transformation may not be easily noticed. If you ask an Argentine about crypto, they will not hesitate to tell you its uses. Today, Crypto Assets are not only a useful tool but have also become a speculative high-end market. It is rapidly evolving, becoming a typical case of disruptive innovation, and is increasingly useful for more people.

Currency is just the first "killer application"; it will not be the last. Crypto Assets will give rise to a more transparent, programmable, and open encryption financial service. It is a cheaper, more convenient, and more inclusive solution for those who cannot access banking services due to high fees or who distrust the increasingly centralized banking system. We see stablecoin payments rapidly rising, and loans can also be obtained through simple coding instead of complex banking or brokerage procedures. Systemic risks can even be reduced by globally tracking collateral.

Looking to the future, as encryption infrastructure expands, we can foresee new consumer applications becoming possible. Creators will have more rights in their creations, and users will better control their identity.

From a more macro perspective, this new Odaily provides us with an opportunity to reshape the existing system and upgrade it to a more advanced and flexible system. Encryption can achieve this not only for currency, finance, and digital assets but also for everything that the internet has done for information and media.

More importantly, encryption provides a means to guard against an increasingly centralized world. In a world where "big" is becoming mainstream, we are slowly losing our appreciation for individuality and diverse powers. By promoting the collaboration of small and diverse forces, encryption has become an important force against centralized power, a driving force for freedom, and a safeguard against the control of large corporations and big governments.

Speculation and Crypto Assets

Although Crypto Assets have their advantages, is their speculative nature really necessary? In fact, speculation is not only necessary but can also be extremely valuable.

Speculative investment is the cornerstone of technological revolution. From the rise of telecommunications and the internet to the dominance of railroads, electricity, and automobiles, breakthroughs in new technologies are often intertwined with speculation and asset bubbles. As Carlota Perez has thoroughly documented, they become an inseparable part of the process towards mainstream acceptance. In the realm of Crypto Assets, speculation has fueled attention and awareness, investment flows, talent aggregation, infrastructure development, academic research, and the acceptance of existing companies.

Furthermore, there is a deeper connection between speculation and Crypto Assets: it is the "Hello World" of digital asset rights. When people have the opportunity to create rare assets, they tend to trade. Give a group of children some Pokémon cards and then observe what happens. The true value of a new property rights system lies in its ability to reliably record the transfer of property, which is also why people will naturally start to try and test it. If this new system has not yet been widely recognized, it may head towards a pluralistic future, where price fluctuations and trading activities will appear more speculative.

I remember in the early stages of Bitcoin, people thought it was a fantasy that it could one day reach today's legitimate status and value. I witnessed early participants enthusiastically mining, contributing, and experimenting, even buying pizzas. Now, over a decade later, Bitcoin and other crypto assets like Ethereum are steadily transforming from speculative toys into global commodities.

Speculation has also played a core role in the process of crypto assets becoming a decentralized financial system. Many financial products have a clear "utility value" for one party in a transaction, but require speculation to meet the needs of the other party. For example, someone may need a 30-year mortgage to buy a house, but has no inherent need to provide that 30-year loan. Our modern financial system mediates between such practical needs and more abstract financial return needs. In the realm of crypto assets, a similar system is being established that includes participants such as speculative traders, infrastructure providers, market makers, MEV searchers, blockchain builders, decentralized financial protocols, and stablecoin issuers. Building such an N-sided market is no easy task; it takes time to develop. But over time, participants become more mature, liquidity is enhanced, and on-chain financial markets will also become stronger.

The "casino" aspect of speculation has its dark side

Although some criticisms of Crypto Assets may lack creativity, some of them are valid. Casinos can serve as a useful launch tool, but they can also bring about undesirable consequences and backlash.

Innovation depends on capital and labor being used for valuable experiments. Excessive speculation, airdrop farming, and other pranking activities can create noise that interferes with price signals that could guide beneficial innovation. Even the most well-meaning entrepreneurs can be misled by erroneous price information or distracted by short-term profits, thereby slowing down the actual construction process needed for Crypto Assets.

Short-term speculation is essentially a zero-sum game, where seasoned traders extract value from novices, which can cause them ongoing harm. A free market should welcome various participants as long as their actions are legal and ethical. However, if we view the acceptance of Crypto Assets as part of a social coordination game, then choosing the optimal time frame may become a prisoner's dilemma. Through long-term cooperation, we can achieve a more satisfactory outcome.

Ultimately, malicious behavior is all too common: scammers, fraudsters, and hackers remain a persistent threat. Imagine a world filled with rogues who "welcome" newcomers through violence and robbery------ this is the landscape of Crypto Assets in San Francisco. Just like the early days of the internet or the gold rush era, this cutting-edge open field not only fosters innovation but also breeds illicit activities. Although good participants still hold the upper hand------ for instance, we have been fortunate to witness the rise of a group of the world's top white hat security experts------ this field still requires more self-regulation and standards.

Why is the progress so slow?

Crypto Assets have been around for nearly 15 years. Shouldn't it have become popular and mainstream by now?

In fact, venturing into a new domain takes time, and most people are only willing to migrate to a new field when the infrastructure is complete and no longer subject to social exclusion. The advancement of technology also has its limits and can only be accelerated to a certain extent. The social dissemination of new ideas is often fraught with setbacks rather than being smooth sailing. Due to the speculative nature of assets, they experience periodic and severe fluctuations; at one moment, people are highly optimistic about the prospects of Crypto Assets, believing it is everything for the future, only to claim the next moment that it has lost its vitality.

Establishing a social consensus around Crypto Assets is even more challenging than creating network effects around communication protocols or social networks. People can quickly recognize the practical value of instant messaging software or social media platforms because they can communicate with a small group of familiar friends through these platforms. However, for a new property system, it is about how to securely transact with those you are less familiar with or do not completely trust, which requires broader recognition and legitimacy. We still have a long way to go, but it is encouraging that today you can already transact with over a hundred million people using Bitcoin, Ethereum, or stablecoins.

Looking Beyond the Casino

Many technologies that we take for granted today were once seen as impossible, useless, dangerous, or fraudulent. Today, Apple has become the most valuable company in the world, but when it went public in 1980, Massachusetts prohibited the sale of its stock, citing its high risks. The same goes for Crypto Assets; since 2010, there have been yearly claims that Bitcoin is dead.

However, human history has repeatedly proven that we often oppose reform due to our adherence to the status quo, especially when these reforms are disruptive. Crypto Assets touch on profound ideas about currency, value, governance, and human collaboration. We need to maintain an open mindset to explore the possibilities of building better things, rather than simply rejecting Crypto Assets out of skepticism.

We must move beyond the speculative nature of Crypto Assets and recognize it as a guiding mechanism of one of the most important technologies of our time. We need to delve deeper into the new Odaily ------ world of encryption technology, contemplating its substantive construction and real applications, rather than merely chasing speculative hotspots.

Appendix

If we compare encryption technology to a new Odaily, what would that mean?

encryption community

The crypto field represents a comprehensive ecosystem that we all should work together to build. There are more common ideas than differences among the different cities of this new Odaily. Compared to the extreme conflicts within, it is more important to persuade the residents of Earth to move to the new Odaily or to protect this coin from the adverse effects of improper Earth regulations.

As Vitalik mentioned, it is very important to think about how to build a perfect system for Crypto Assets. The new Odaily cannot always rely on the infrastructure of Earth. The network system we currently depend on includes mainstream search engines, social media platforms, code hosting platforms, and credit card systems, as well as an independent Chinese network system, which includes mainstream social software, payment tools, Weibo, and digital renminbi. What we need to build is an independent encryption system that should operate like China's system but be more open and guarantee autonomy.

For a new Odaily, having a unique culture is beneficial. We may not want encryption technology to fade into the background or for the new Odaily to be highly similar to Earth.

Builder

Building products in the Crypto Assets field is not