AI to the left, Blockchain to the right

Why won't BTC (Bitcoin) crash? Let's talk about the logic of "hard currency" in the virtual world.

Recently, while chatting with friends in the circle, someone raised a soul-searching question: "BTC (Bitcoin) is also supported by consensus, so why won't it collapse?" This matter must start from the evolution history of "general equivalent" —

1. From Shells to Gold: The Logic of Equivalents in the Physical World

In ancient times, it was very troublesome for different tribes to exchange things. At the seaside, they used shells as money, in the mountains, they used stones as money, and later everyone discovered that gold was naturally suitable as "hard currency":

• Scarcity: Not much can be mined, will not depreciate easily;

• Physical properties are stable: not easy to rot, not easy to rust, can be stored;

• Convenient to trade: can be divided into small pieces, lightweight to carry;

• Good-looking: polished and shiny, everyone recognizes it.

In this way, gold became the "general equivalent" in the physical world, unchanged for thousands of years.

2. BTC is the "gold" of the virtual world

More and more people are now "living their lives" online, buying skins in games, purchasing land in the metaverse, and even working in virtual spaces. At this time, the virtual world also needs a universally recognized "hard currency," and BTC (Bitcoin) fills this gap:

1. Characteristics that are better than gold

• Scarcity maximized: There are only 21 million in total, and after a certain amount is mined, it will "halve", making it slower and slower to mine, and less and less to mine. After last year's halving, the BTC's S2F model (stock-to-flow ratio, an indicator of scarcity) directly surpassed gold, becoming "the most scarce asset in the world";

• The natural advantages of the virtual world: you don't have to carry gold bars around; just store a wallet address on your phone for transfers. Moreover, transactions are anonymous and secure, with cross-border transfers arriving in minutes, making it 100 times more convenient than bank remittances.

• Resist "physical attacks": Gold is afraid of theft, robbery, and fire. BTC exists on the blockchain, and as long as the private key is not lost, it can never be lost (provided you don't forget the private key on an internet cafe computer...).

2. The underlying logic of the virtual world needs a "hard currency".

• Humanity is becoming increasingly "virtualized": from playing on phones and attending online classes to now AI and the metaverse, people are spending more and more time in the virtual world. In the future, "the boundary between reality and the virtual will become increasingly blurred" (just like Zhuangzi dreaming of a butterfly, who can clearly distinguish between the virtual and the real?);

• Traditional finance cannot keep up with the pace: Stock trading has opening and closing times, bank transfers have fees and delays, while transactions in the virtual world need to operate 24/7 without interruption, cannot be tampered with, and require clear ownership rights - the blockchain technology of BTC perfectly addresses these issues, with instant transfers and immutable transaction records that no one can alter.

3. The "moat" of BTC: Technology + Trend + Ecosystem

Currently, the cryptocurrency projects are diverse, but the position of BTC is difficult to shake, as it is backed by the "technical consensus + trend consensus + ecological consensus" threefold buff:

1. Technical Consensus: The "Immutability" of Blockchain

The blockchain of BTC is like a "ledger that never forgets", maintained by miners all over the world. Want to secretly alter transaction records? Unless you can control 51% of the global computing power, that's harder than reaching the sky. This "absolutely fair" technology allows everyone to dare to hold it as "hard currency".

2. Trend Consensus: The "Essential Need" of the Virtual World

As long as humanity continues to run towards the virtual world, and as long as the internet, AI, and the metaverse continue to develop, transactions in the virtual world will need "hard currency." BTC has already taken the lead in becoming the "gold" of this field. For later comers to replace it, they must solve the problem of "reaching a consensus among everyone again"—this is 1000 times harder than creating a new coin.

3. Ecological Consensus: The Game of Capital and the "Balancer"

Recently, there are people in the community saying "AI to the left, blockchain to the right," meaning that:

• AI represents "centralization": large companies and big capital use AI to develop technology and monopolize, leading to increasingly concentrated power;

• Blockchain (represented by BTC) stands for "decentralization": ordinary people can use it to fight against monopolies and protect their wealth.

Just like the "yin and yang fish", the more concentrated one side is, the more the other side will be needed to check and balance each other. Capital wants to play the "stablecoin bill" and control the wealth of the virtual world, but in the end everyone finds that "the carrier of wealth has to rely on the blockchain, especially the pie" - because of its scarcity, decentralization, and inherently a "balancer".

4. How do ordinary people view BTC?

Some people think BTC is a "gambling tool", while others think it is the "prototype of future currency", but in essence, it is an experimental product and pioneer of "hard currency in the virtual world".

If you agree that "humans will become increasingly virtualized" and "traditional finance needs innovation," then the logic of BTC being built on blockchain makes sense; but if you feel that "the virtual world is unreliable" and "blockchain is just a gimmick," then it may always be a hazy concept for you.

A final reminder: the cryptocurrency market is risky, and BTC fluctuations can be severe. Don’t get carried away just because someone shouts "sky-high targets." For us ordinary people, understanding logic and avoiding pitfalls should come first, and making money second—after all, recognizing trends is more important than blindly entering the market!

(This article only discusses technical logic and does not constitute investment advice. The cryptocurrency market carries risks; enter with caution!)