Engine Capital Partner Mr. Jie Shao's informal discussion about BlockChain Industry and Investment
A 2019 Bitfinder press conference hosted by Bitfinder was held in hangzhou, east China's zhejiang province, July 31, 2019. Engine capital as the main cooperative institutions were invited to attend, co-founder jay less was entitled "talk about block chain industry and investment" to share.
Engine capital was established in Singapore in 2017, is a focus on the block and the Internet industry chain of risk investment companies, mainly involved in investment fields: block chain, big data, mobile Internet, overseas and supporting services such as asset allocation, technology development, is committed to become a one-stop value-added professional property investment institutions.
Jie shao, co-founder of engine capital, made a wonderful speech around the background of the birth of blockchain (bitcoin), blockchain is the redistribution of human wealth, Token makes the consensus more valuable, the three carriage of blockchain finance, new opportunities of blockchain, and the investment concept of engine capital.
The background of the birth of blockchain (bitcoin)
The financial crisis
In September 2008, starting with the collapse of lehman brothers, the financial crisis broke out in the United States and spread to the whole world. To deal with the crisis, central Banks have adopted measures such as quantitative easing, and governments have spent vast sums of taxpayers' money to bail out large financial institutions that were caught up in the crisis through their own mistakes. Therefore, the public dissatisfaction with financial institutions and financial industry executives reached a peak; It also raised widespread doubts about the central bank and government's generous taxpayer-funded measures, which at one point sparked the occupy Wall Street movement.
Zimbabwe was once the country with the highest inflation rate in the world. According to the official statistics released in July 2008, the inflation rate reached 231 million percent. On January 16, 2009, the reserve bank of Zimbabwe issued Zimbabwe dollar notes with a face value of 100 trillion yuan, which set a record in human history. It is reported that at the free market exchange rate of January 15, 2009, 10 trillion Zimbabwe dollars is about 30 us dollars.
Madoff's fraud of the century
In December 2008, U.S. Wall Street legend Bernard madoff was arrested by police on suspicion of securities fraud. Prosecutors accused him of using a ponzi scheme that cost investors about $50 billion. Madoff was subsequently sentenced to 150 years in prison.
Bitcoin was born
At the same time as these three financial messes erupted, on January 3, 2009, satoshi nakamoto developed the first client program to implement the bitcoin algorithm and conducted the first "mining", obtaining the first batch of 50 bitcoins and officially launching the bitcoin financial system.
Compared with the birth, what is more shocking is the evolution history of block chain. The three digital currencies represented by BTC, Eth and XRP have witnessed an amazing rise in just a few years, with BTC increasing by 3,774,500 times.
Blockchain is the redistribution of human wealth
The distribution of wealth in the agrarian age
In the age of primitive society, people lived together in the form of tribes, mainly based on relatives. The population was small, and most of the tribes adopted the egalitarian distribution method. The distribution of wealth during this period was mainly based on tribal income.
The distribution of wealth in the industrial age
With the arrival of the industrial revolution, the industrial age basically eliminated manual workshops dominated by manpower by machine factories, and large-scale factory production greatly increased the productivity. The wealth of this period was industrial technology, which, on the premise of meeting the needs of the public, could be controlled by those with more advanced and efficient technologies.
Wealth distribution in the Internet age
In the age of Internet technology, there is no doubt that wealth is big data. The significance of big data lies not in mastering huge data information, but in how to carry out professional processing of these meaningful data, so as to better enable enterprises to follow the ever-changing trend and constantly update, and also have the ability to predict the future development trend, so that enterprises can occupy competitive advantages.
The core of blockchain era is to establish decentralized credit and let the market trust the market.
Three carriages of blockchain finance
New opportunities for blockchain
One, IEO and resonance currency and the rise of pattern currency
Ii. Research and development of blockchain by Internet enterprises
Take IEO as an example, IEO must be done in the exchange, because the transaction of all existing users, the most easy to reach the effective users, and users dare to deposit money in the exchange, has all the trust of the transaction, easy to facilitate conversion. So IEO looks pretty solid, but only if the exchange has a real active buyer base.
Libra, for example, says zuckerberg: we want to make it as easy for everyone to send and receive funds as it is for apps to share information and photos. LIBRA is especially attractive for those who don't have access to traditional financial services.
The global attention aroused by the news of Facebook's issuance reflects the pursuit and yearning of human beings for "simplicity" or "convenience". Behind this is the effort and determination to achieve equality between people. All these are new opportunities for blockchain.
Engine capital's investment philosophy
Compared with many institutions that want to invest in hundredfold or thousand-fold COINS, jeshu believes that high returns must coexist with high risks and there will be a lot of bubbles. Therefore, the return rate cannot be forced or only looked at in the investment.
Engine capital investment has its own ABCDE rules, and no matter at what stage, the engine capital needs only to meet the five necessary and sufficient conditions of the project.
Engine capital investment more than 100 projects around the world, so far has been disclosed investment amount is about more than 50, successively with brock, gold krypton capital, BN Capital, digital engine, star yao capital, ear of finance and economics, BTC Trade, 499 block, the south Korean association of chain blocks, beeping NEWS, COINS, chain in the media, the bull market of finance and economics, finance, bo chain MXC maccha exchange, the DGE, BBR and so on outstanding block chain enterprises set up strategic cooperation.