The currency price is not derived from the blockchain, but the assets mortgaged on the chain
People who have a preliminary understanding of the blockchain often do not buy the famous bitcoin, but choose the ADA.
After all, a bitcoin is at least $6,000, compared to a few cents for an ADA.
In their view, the ADA's appreciation potential is huge, as long as it rises to 4 dollars, the investment will be 100 times. If the ADA rises to a price with Bitcoin one day, he will be listed on the Forbes Rich List.
But the rich is obviously not so simple, it only shows that he knows nothing about the concept of "market value."
In fact, the current ADA circulation market value of 3 billion US dollars, equivalent to the market value of companies such as Uber, Mobike. The problem is that the market value of Uber and Mobike is supported by physical assets such as users, trading volume, and car bicycles.
What is the support for the ADA market value? From the current point of view, there is nothing.
Yes, in the short term, there are no assets that support the ADA market capital, except for the amount of locks officially promised and the volume of transactions contributed by those who buy and sell ADA.
In the long run, the vision of the ADA public chain supports a market value of $3 billion, or more precisely, the assets that are mortgaged on the ADA public chain.
What is the ADA public chain?
The public chain behind the ADA is called Cardano, founded by former Ethereum co-founder Charles. The biggest selling point of the ADA is "academic".
Cardano technology updates are based on academic papers. The paper itself is subject to peer review and is posted on the International Cryptography Association website.
The Cardano Consensus Mechanism Ouroboros claims to be the only academically certified mechanism based on the POS Consensus in the form of “The Conflict Resolution Terminal”.
The miner needs to generate a random number locally, then calculate the hash value, and then broadcast the hash value and the random number to the whole network.
After other miners receive hashes and random numbers, they do a comparison locally to see if someone cheated or missed a value.
After that, the whole network random number will be XORed and the accounting node will be selected. The more people who hold the ADA, the more likely they are to be elected.
The problem is that "academic" is just giving you a reason to believe, and the vision of becoming an international clearing currency is where ADA values lie.
What is the value of money?
Money comes from debt.
In the period of barter exchange, the store issues currency in order to make it easier for customers to exchange goods, and the total amount of money and the value of goods are one-to-one correspondence.
During the floating exchange rate period, the currency was issued based on national debt. When people hold money, they have the right to exchange products or services.
The source of monetary value is attached to the assets above the currency. It can be seen from the development of the US dollar and the Russian Ruble.
After the Second World War, the "baby boom" in the United States gave rise to consumer demand. Boeing, IBM and other companies developed rapidly, and the assets attached to the US dollar increased significantly.
In contrast, the Soviet technical strength does not lag behind the United States, but the quality assets attached to the ruble are rare. For example, can you name the names of several Soviet companies?
Therefore, after the collapse of the Bretton Senate system, the US dollar became the world currency.
The development of the US dollar and the Russian Ruble has some implications for today's blockchain industry.
The essence of digital currency is money. The quality of the issuing company itself cannot fundamentally improve the value of money.
The value of money depends on whether the assets attached to it are of good quality.
It is like real estate developers who have exhausted all kinds of high-tech and built the best office buildings in the world. Investors also recognize the technology used by developers, so they are rushing to buy value.
When the building officially opened, it was found that although the design sense, experience and technology of the building are the best in the world, there is no company to settle in, or there are sporadic small startups coming in, but it is not enough to make the price of real estate soar.
Emurgo layout is slow, dragging ADA
Looking at the ADA again, the international settlement currency was a good vision. What promoted this vision was not the IOHK where Charles was, but Emurgo.
Not long ago, Li De, the head of the original Emurgo China operation, broke the news after leaving the company. Emurgo CEO Ken not only did not have the ability, but also sold the ADA office.
The news caused an uproar in the Cardano community, but fortunately, everyone still believes in Charles's technical ability. And the ADA's currency price was not affected by this incident.
However, under the premise that the public network of the public chain has not yet been launched, everyone can still expect the ADA with the trust of the technical staff. What if the main online line?
Technology is the foundation of the vision, and Emurgo is what drives the vision. The building was built even better, and the lack of capacity of the sales staff did not help.
Obviously, whether it is Ken's personal twitter or Emurgo's official website, we have not seen any valuable cooperation, which is probably the most disappointing thing for investors.
If the ADA wants to maintain the price of the currency after the main online line, those who lack the ability in Emurgo to occupy the position can be considered to be cleaned.
The cooperation information displayed on Emurgo's official website is still in June.
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