Editor's note: Continue Capital is a well-known technical veteran in the industry. He has experienced many crypto bull and bear markets. This article is a letter to the military class written by him, which has been widely praised. Today, PANews sorted it out and reposted it, hoping that it will be helpful to you, or at least make you think. Please read the full text:
Boss Jun is smart and studious, hardworking and selfless, which is admirable. I feel that you have been addicted to massive amounts of information, so I would like to make a few notes, but these are just my personal opinions.
The importance of information is no longer necessary, but do not mistake daily summarization and capturing key information as being so important. The so-called fleeting opportunities are all superficial. Being immersed in a variety of opinions is like throwing away food with the bathwater. You only see tactical opportunities and lose more strategic mechanisms. What you need to do is to reverse the theory from some successful cases and guide investment through systematic theoretical learning instead of blindly following colorful information. It is better to retreat and make a net than to envy the fish by the abyss.
The above is a bit abstract, let me give you a few examples to illustrate. In 2016, the debate between Square Ventures and USV on fat protocols and thin protocols laid the foundation for many people's investment philosophy for three years. This outline document was not known until the public chain dispute at the beginning of this year. In fact, when it was born, it was already an important thesis for many well-known funds. Now these funds are very popular, such as USV, Pantera Capital...
Opportunities to participate in the secondary market. Although the cryptocurrency circle still has many imperfections and people can make a fortune without looking at the K-line, you need to seriously learn investment concepts and systematically learn some financial/computer knowledge. The power of holding, the importance of mentality, slow is fast, and the valuation methods of the traditional Internet industry (Metcalfe's Law, Zipf's Law). These are some important theoretical knowledge. In 2000, no one knew what PE was when speculating in stocks. With the transformation of several rounds of bull and bear markets, people realized the importance of PE. If you understood the PE valuation theory in 2000, could you still buy PetroChina at 48 yuan? You don't study these theories, and I don't study them. There must be a few people who study them, and it is these few people who may survive;
Sidechain is essentially a cross-chain. We believe that at the current stage of development, sidechains have many problems in terms of security, stability, complexity and convenience. You can learn more about BTCRelay, Lisk, Axi, Loom, and POA Network. They are not masterpieces. What is the guiding significance of this example? Can similar projects be invested? Of course, they can be invested. Whether they are great, we are waiting and watching at this stage. Perhaps with the iteration of technology, a master in this field will emerge, and we will explore it.
Some people have been searching for the code to get rich. If someone tells you the code, do you dare to buy it? If you buy it, do you dare to hold a large position? If you hold a large position, can you keep your mentality stable when the market falls... So only when you are familiar with the logic behind it can you have a clear mind and not be disturbed by the outside world.
Finally, the power of the system, perhaps the rate of investment theory is what you really need, the way of resonance, all methods return to the origin, and hope for great success.
2018.07.06 The Niu Class Community
