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  • Writer's pictureLeo Wang

What is the nature of value?


Many people have never understood why Bitcoin is valuable, let alone why the price of Bitcoin exceeds 100,000 yuan. The most incomprehensible thing is that people in the currency circle often say "one coin one villa".


If you cannot understand the "value backing" of Bitcoin, then you will never be able to hold Bitcoin for a long time. Even if you buy some Bitcoin, you are just a speculative passer-by. Getting in and out of the car, I lived on tenterhooks every day. I heard about Bitcoin in 2012, held Bitcoin in 2014, and participated in ICO with Bitcoin in 2017, in exchange for various digital currencies. I have been in this trend for more or less 5 years. It was only in the past month that I fully understood the nature of value and the value backing of Bitcoin!


I am a slow-moving investor, and relatively rational. I didn’t see the true value of Bitcoin until it reached 30,000 yuan. But since then, I have become a staunch digital currency "value" investor and a creator and guardian of "digital wealth". My confidence has never been so firm and I am on the road again, leading to the future era of digital wealth.


To understand the value backing of Bitcoin and the subversiveness and destructiveness of blockchain technology, we usually need to read at least three books "Out of Control" and "The Denationalization of Currency" , "The Crowd", these are all books written before 1999, but the content describes the decentralized wisdom of living things, the future of currency and finance, and the unchanging nature of human nature. If you have not read these three books, or have read but failed to understand their essence, or simply cannot connect these theoretical knowledge with the value of Bitcoin, then please read this article carefully. This article will try to provide You explain the value backing of Bitcoin in a more accessible way.


P.S. This is a secret that the big guys in the currency circle will never share with you,If you understand it and take action, your worth can increase 10 times.

Before we try to understand the value behind Bitcoin, please think about a question:


What is the nature of value? In order to answer this question, I will ask more related questions in a row:

  1. What is the value essence and price support of luxury goods?

  2. What is the value essence of game virtual props and game equipment?

  3. What is the value essence of all consumption and reward behaviors surrounding celebrities?

  4. Brand products all have brand premiums. What is the value essence of brand premiums?

  5. Diamonds are forever, and one will be passed down forever. So what is the essence of the value of diamonds?

  6. Roses on Valentine's Day are several times more expensive than usual. What is the essence of the value of roses?

  7. What is the essence of value of Mickey Mouse, Donald Duck, Hello Kitty, and cultural and creative IP?

  8. What is the essence of value of artwork? Why is "Salvator Mundi" worth $450 million?

  9. The last question, What is the nature of currency? What is the nature of value of gold and paper money?


Let's not read any further, let's enjoy the most expensive painting in history, Leonardo da Vinci's "Salvator Mundi", which was just auctioned for 450 million US dollars, and be quiet at the same time Think about these nine questions and think about it:



What is the nature of value?


If you live in a working-class social environment, then there is no need for you to consume high-premium luxury goods. A 10 yuan canvas bag is enough to meet your needs;
If you don’t play games, you won’t understand the logic of spending money to buy virtual props and equipment, and you can’t even imagine that someone specializes in this profession and spends their time Sell the equipment and props you knock down to other players to earn profits;
We also chased stars when we were children, but we just bought a poster and pasted it on the wall next to our bed. But today’s backdoor way of chasing stars in the 1990s is like that of the uncles born in the 80s. Shocking, not to mention the grandfathers born in the 1970s and 1960s;
Rewarding for live broadcasts is a logic that the older generation cannot understand anyway. Even some male anchors tell jokes and chat in front of the mobile phone camera every month. With a monthly income of 300,000 yuan, I really don’t know what “value” those little girls who rewarded him got with their money.
A cup of coffee costs less than 5 yuan, and Starbucks can sell it for 25 yuan. This 20 yuan premium, like all brand premiums, has become the life of middle-class consumers. Way. But there are many brands, and different brands target different groups, and groups may not buy into them. You drive a BMW and I drive a Smart. You wear Armani and I wear Uniqlo. You wear a suit and tie and I wear T-shirts and jeans. Brands attract different user groups through value propositions, and they are willing to pay a premium for the brand they choose;
Diamonds are very hard, the hardest substance in the world, but apart from making drill bits, what other practical uses do they have? So the Jews told a story, and women all over the world believed it. From then on, the young boys had to spend all their money to buy a hard stone representing eternity for their beloved woman. At a certain moment when the whole village witnessed, Wear it on a woman's ring finger. The value of diamonds is nothing more than a widely accepted scam, but it doesn’t matter if we believe it;
Valentine's Day roses are several times more expensive than usual. It's not that the roses bloom more beautifully on that day, but that people need to use them to convey love on this day. The appreciation value of roses is not much higher than that of grass tail flowers, but the price is thousands of times higher. We men are willing to bear this premium, just because everyone accepts it. The scam "roses represent love";
All IP images such as Mickey Mouse, Donald Duck, Hello Kitty, and Rascal Rabbit can be printed on T-shirts to increase the value of the T-shirts ten times or even a hundred times. It is not Because T-shirts with Mickey Mouse printed on them are more comfortable and warmer to wear, just because everyone knows this mouse and everyone likes this mouse, and we need everyone to like us wearing Mickey Mouse, just as they like Mickey Like a mouse;
Artworks have high appreciation value and are also scarce, so there is more room for appreciation of the works after the death of the artist. But is the appreciation value really worth tens of millions or even hundreds of millions of dollars? Wouldn’t it be just as appreciative to have a replica hanging on the wall? High imitation works of art are not much worse than original paintings in terms of appreciation; if it weren’t for the large art collection group and the belief that someone would be willing to collect them at a higher price in the future, buyers would still be willing to pay such a high price. ?

After answering all the questions, we should be able to realize:If we don’t assign value to one thing, anything None have intrinsic "value. The air and water that are most important to our lives are free, and the food that can keep us full is extremely cheap. Strictly speaking, most of the amount we spend on our monthly bills is not A necessity for survival, but a necessity for life. The "premiums" attached to various goods and services are "unreal" and are merely "group consensus" that exists in our imagination.


This is my conclusion:


The essence of value is consensus!

Although there are only eight words, it took me nearly forty years to search. I am still very lucky to understand before I was fortyThe essence of value is consensus. On the basis of this consensus, participating in digital wealth creation in the digital currency era will not be so entangled and hesitant. The market value of digital currencies represented by Bitcoin will eventually surpass gold, because this consensus group is growing, and the wealth strength of this group is also growing. Within 10 years, we will definitely see Bitcoin or a certain digital currency. The market value surpassed gold, that is, the day when 1 Coin = 500,000 US dollars; at that time, one Bitcoin or a certain Coin was enough to buy a beautiful villa in a beautiful suburb of a developed country.



Many readers may think that the essence of currency is not consensus, but the coercive power of government and guns. In fact, this understanding is incomplete. There are many ways and reasons for the emergence of consensus. Government coercion is just one way of generating consensus. There are many other ways in which consensus arises in our society:


Endorsement by authoritative people, corporate credit, historical inheritance, science, religious beliefs...These can generate consensus. Just like the "indulgences" that Catholicism once sold, if you didn't belong to that denomination (consensus group), you would definitely not spend money to buy indulgences. The reason why gold still has value is not because of the government-mandated gold standard system, but because of the historical and cultural traditions that remain in our minds. When we get married, we still like to wear gold and silver. When our children are one month old, relatives and friends Friends will still give gold jewelry to represent their best wishes. Policies can be changed overnight, but historical and cultural traditions cannot be changed overnight. Therefore, the value of gold and the value of Bitcoin are essentially consensus; one consensus is historical inheritance, and this consensus group may be getting smaller and smaller; one consensus is digital belief, and it seems that this group is getting smaller and smaller. big.


We cannot understand the value of something just because we do not belong to the consensus group on that thing!

Brand is the consensus, culture is the consensus, trend is the consensus, diamond is the consensus, currency is the consensus, politics is the consensus, religion is the consensus, law is the consensus, folk custom is the consensus, credit It's a consensus... Broadly speaking, the operation of human economy and society is based on various consensuses. The vision proposed by the company is essentially a broad consensus reached by the founders, employees, shareholders and users. So I am willing to call Silicon Valley’s so-called “cryptoeconomics” “consensus economics”. The English name is: Consensus.


When there is consensus, there is value, and creating value is creating consensus! The main significance of the government's bailout is to activate the confidence of private capital. Confidence is a bullish consensus. Bullish capital is greater than bearish capital When capital increases, the market index will rise. The core of government regulation is consensus guidance.


Michelin restaurants and Victoria’s Secret shows are both consensuses built in consumers’ minds through continuous marketing actions. The marketing effect of the Victoria's Secret Show began to appear probably in the second decade of the show. It not only attracted audiences to watch, but also created a sales myth. 35% of the U.S. The underwear market is controlled by Victoria's Secret. Analyst Erika Maschmeyer once said, "Underwear and pajamas can be sold everywhere, but no one gives the brand as strong a connotation (consensus) as Victoria's Secret. The Victoria's Secret show deserves a lot of credit.< /p>

Recently, a speech given by Masayoshi Son of SoftBank went viral in the circle of friendsDigital assets will become mankind’s greatest asset span>》. Why did he say that?


Primary industry: agriculture...secondary industry: industry...tertiary industry: service industry...


These industries are either mature or stable. Although the service industry continues to develop, The ceiling for human beings to create wealth in the atomic world is becoming more and more obvious. If we want to continue to promote economic development and continue to create endless wealth, then we must work hard in the fourth industry: digital industry (virtual industry). The imagination of this world Space is infinite. Bitcoin has created 260 billion U.S. dollars of value for the world out of thin air, and other digital currencies add up to 100 billion U.S. dollars (Ethereum alone has a market value of nearly 50 billion U.S. dollars). These wealth and values are all created in the digital world. This is just the beginning. In addition, the recently developed Cryptokitties is essentially a new value (consensus) created by the digital world. Once we understand that the essence of value is consensus, it is not difficult to understand the popularity of CryptoKitties. . If you are interested, you may wish to search for "Ethereum CryptoKitties", or go to the official website to see what a digital cat worth 920,000 ETH looks like:



P.S. Today 1 ETH = 450 USD

The era of digital wealth has just arrived. It is still 2 o'clock in the morning and it is pitch dark. We can only fumble forward. Many people are still repairing the fatigue of the previous era in their sleep. And we have already set off. Although the road ahead is rugged, the dawn sun is just 4 hours away!

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