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Gu Yanxi: Facebook may become the entrance of digital financial ecological flow in the future



"Facebook provides its massive users with daily payment transactions of fiat currency and digital currency, and is more likely to become a digital financial traffic portal than Starbucks and Robinhood."

The development of the Internet era has let us all know the importance of Internet traffic portals. If an application is popular, more product functions can be developed on this application, and more users can be attracted to use this product. The product will thus become a major entry point into the Internet world. The success of QQ and WeChat fully demonstrates this.

In the future digital financial world based on distributed ledger technology, such an application portal is also very important. The principle is the same as that of the Internet era. If an application is popular with users, then this application product can provide more related services on this basis. Looking at it now, which application is more likely to become the entrance to the future digital financial world? I think from the current point of view, there are three possible application terminals in this regard. They are Starbucks’ terminals that provide payments based on encrypted digital currencies, Robinhood’s terminals that provide securities and encrypted digital currency transactions, and Facebook’s upcoming application terminals that support fiat and encrypted digital currency payments. Among these three applications, Facebook's application terminal is most likely to become the entrance to the world of digital finance on a global scale.

Gu Yanxi: The demand for BTC leads to an increase in USDT, and most of the Diem USD will flow into BTC: On February 13, Gu Yanxi, the founder of the American Liyan Consulting Company, tweeted that the demand for BTC led to an increase in USDT, not the other way around. From 2021 onwards, compliant USD stablecoins will grow rapidly. If anything happens to USDT, this will continue to sustain the growth of BTC, plus, a large part of Diem USD will flow into BTC. [2021/2/13 19:40:37]

The founder of the Bakkt Exchange has seen some scenarios of the future digital financial world, that is, the integration of payment function and transaction function in the transaction terminal, and the exchange transaction between encrypted digital currency and digital assets at any time. Therefore, while establishing this derivatives exchange, Bakkt strives to connect its trading terminal with the user's payment terminal. So it prefers to use the way of gifting equity to obtain the right to use Starbucks payment terminals. Starbucks users can therefore use encrypted digital currency to buy coffee and use it to trade assets. In such a digital financial ecosystem, Starbucks provides payment application scenarios, and Bakkt provides transaction scenarios for encrypted digital assets. Their common users can therefore use the same terminal to manage and use their own digital currency and digital assets. The founders of Bakkt were right about this prospect. The strategy it adopts is also an appropriate strategy based on the comprehensive consideration of existing technology, business and regulation. However, such a strategy does not help them build a solid foundation to become a very popular application in the future world of digital finance.

Gu Yanxi: One of the value foundations of Bitcoin is the network effect: According to the news on February 2, according to the analysis data on the Glassnode chain, the supply stored in the Bitcoin transaction wallet is at the lowest level in the past two and a half years. In this regard, Gu Yanxi, the founder of the American Liyan Consulting Company, said that one of the value foundations of Bitcoin is the network effect. The Bitcoin network recorded a record high transaction volume in January, thus indicating the continuation of the upward trend in the value of Bitcoin. [2021/2/2 18:41:48]

The future digital financial world must be based on the financial market infrastructure based on distributed ledger technology. In the future digital financial ecology, digital currency will be used to trade digital assets. Digital currencies will include CBDCs issued by various central banks and digital stablecoins based on a single legal currency. This basic feature of the value stability of digital currency ensures that it is used as an efficient value transaction medium. But in the ecosystem created by Bakkt, the systems of Bakkt and Starbucks are both centralized systems. The trading medium used is a medium with great fluctuations in value such as Bitcoin, so such a structure cannot easily transition to the future digital financial world.

Gu Yanxi: Bank of America's custody of encrypted digital currency can help the market achieve more growth: On August 7, Gu Yanxi, a researcher of blockchain and encrypted digital assets, published an article "The Significance of Bank of America's Beginning to Manage Encrypted Digital Currency" , U.S. regulation began to allow U.S. banks to host encrypted digital currencies, which has a far-reaching impact on the encrypted digital currency and encrypted digital asset industry. The main impacts are as follows: 1. There are more choices for the encrypted digital currency custody business; 2. The encrypted digital currency market realizes more increments; 3. The market providing encrypted digital currency custody services will change; 4. The encrypted digital currency in the United States The asset market infrastructure has been further strengthened; 5. Custody business is the beginning of the US banking industry's entry into the digital financial business. [2020/8/8]

Robinhood's trading terminal provides free securities and cryptocurrency trading functions. Because of its free feature, it has attracted a large number of users. Robinhood has thus become a typical traffic portal in the Internet era. In the future digital financial ecology, Robinhood users will easily migrate to the future digital financial ecology.

Voice | Gu Yanxi: Libra will have a major impact on the currency, clearing network and other industries: Gu Yanxi, president of the CBX Research Institute, published a column today "Libra's Impact on the Global Financial Industry". In the article, Gu Yanxi Three basic judgments on Libra are put forward: Libra is actually a development and application of blockchain technology; Libra is still in the process of continuous evolution and development; and Libra will eventually be introduced to the market. Based on this judgment, Gu Yanxi said that the essence of the Libra project is to allow value to circulate freely around the world on the basis of blockchain technology. First of all, those who obtain financial services based on Libra are not currently not receiving financial services globally. 1.7 billion users, but users who carry out economic activities across borders. Libra will have a major impact on currencies, clearing networks, commercial banks, central banks, and the securities industry. The enlightenment generated by Libra is that blockchain projects must be legal and compliant, and the financial industry needs to grasp the opportunities brought by blockchain technology. The success or failure of blockchain projects is determined by factors other than blockchain technology. [2019/12/21]

First of all, since Robinhood provides securities trading services, it has verified the various qualifications required for financial services for users. These users can easily use existing financial services now, and will also easily use various financial services in the future digital financial ecosystem. Second, its users are basically young users. Younger users are more likely to accept new applications. Third, the transaction service provided by Robinhood is already free. In the future digital financial ecology, since the cost of the overall ecology is greatly reduced, the transaction service of digital assets must be free (see my related articles). So in terms of cost, Robinhood already has this advantage. Fourth, in terms of systems, Robinhood does not have an overly heavy background system. Its most important core advantage lies in its user terminal. It can easily connect to various transaction services provided by the background. Specifically, Robinhood can easily connect to one or more new digital asset exchanges, integrate corresponding functions based on blockchain technology, and directly use various services provided by this digital asset exchange.

Among these three potential application terminals, Facebook's social terminal is most likely to become the entrance of the future digital financial ecology. First of all, it currently has a large number of users around the world. Second, Libra is providing digital stablecoins based on blockchain technology. Libra members and the various applications developed by Facebook here are based on the financial market infrastructure of the future. Third, Facebook is integrating its legal currency-based payment with its digital currency-based payment, which will be integrated into its application terminal. Therefore, Facebook users can use fiat currency and digital currency for daily payments and transactions. In addition, Facebook's terminal actually provides a channel for migrating from legal currency to digital currency. Therefore, the legal currency in the society will flow into the future digital financial practice (see my related articles). Therefore, Facebook's application terminal will be a bridge connecting the current financial world and the future digital financial world. The large number of Facebook users will therefore easily migrate to the future digital financial world. Therefore, in the future digital financial world, Facebook's application terminal will become a major traffic entrance in this digital financial world.

Original title: "Who will become the traffic entrance of the future digital financial ecology? "Written by: Gu Yanxi, founder of Liyan Consulting Company, a researcher and practitioner in the blockchain and encrypted digital asset industry


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