Blockchain Technology Is Great, But the Coins Are Air

Hi guys, my name is Jack from China. I want to share my idea and opinions by medium. I am a blockchain practitioner. so my topics include blockchain、economy and social issue mainly.
My first article topic is “Blockchain technology is great, but the coins are air”.
Fortunately, I had opportunity to join in blockchain field in 2017. At that time blockchain technology is famous in the world. because bitcoin prices have risen and its returns on investment is more than 10,000 times. On the other hands, ETH allows everyone to create own coin by smart contract. it means that everyone has the opportunity to make next bitcoin. So everyone became entrepreneur and announced to world：I created a coin. I will be a next Satoshi Nakamoto is the Bitcoin creator. Do you want to join with me？ In the end, most investors were lost their money in 2018. According to my research and experience, blockchain is great. but the coins are air. I will show you my points in next parts.

● What is blockchain technology？
To be honest, blockchain isn't a brand new invention. it is a combination of a series of mature technologies such as network technology, cryptography, distributed accounting and so on.
I have an imaginable example to make you understand it easily：there are 10 students sitting in classroom. Every student is writing everything happens in this room with a notebook. Finally, nobody can lie in the classroom because of the student’s record in notebooks. So according to this demo, please image the room is the world, and 10 students with notebooks are a lot of computers. But actually, it cannot mark down everything. the cost is too expensive and no man is interested in your grandfather daily life.right？ Finally, the Bitcoin creators are very smart to make it that bitcoin network just write down the code exchanging information. Bitcoin is based on a string of code. In the past, code is easy to be copied. However, according to this demo, because of many notebooks in all around the world, it cannot be changed and copied anymore when I exchanged bitcoin code to u.
So it's blockchain technology that many notebooks（computers） are working together to note series of information（trading record/copyright） so that nobody and powerful organization can destroy it.

● The price rises and falls are just the games of human’s confidence.
With Bitcoin‘s price rising, ETH opened the Pandora Box in 2017. What is ETH？ If we imagine blockchain as a new technology is a planet, Bitcoin is a person who landed it first time and proved the planet is suitable for our human. So ETH is the first road that built on it. We can set up various business on both sides of the road. And just one more thing, when you set up a store, you can create a own currency for business. Because of Bitcoin’s success, many investor and coin creator their coin will become the next Bitcoin. So that the bubble of digital currency was coming in 2017-Jan 2018.
it's unbelievable why the price of digital currency is rising. they are just the computer code. let me show you another demo. That is the reason why digital currency has price and rising.
there is a long table and 10 people siting here with 10$ and 10 papers（1$ & 1 paper per person）. they are the first group who are willing to pay for a paper with 1$. Right now, they felt bored because there is not new player and the price isn't rising. So this 10 men tried their best to introduce other to join and pay with all of the way they can come up with such as pizza. finally, the new players were attracted one by one. some people took 1$, 3$, 4$ to pay for this 10 papers. there are always 10 papers on the table. but the money become more and more on the table. the result is that the price of blank paper is rising. when the price rises, there are too many players around table. so that everyone wants to join and pay even they don't see and know what happen on the table. but the high price confuse them. it's the bubble risk demo.
According to the above, we understand the price rising and falling are not based on the value of object. It is based on the investor's confidence in future price expectations. their confidences are irrational.

● All coins are air include Bitcoin. But you can invest it.
all of the digital currency are air that include Bitcoin. but you can invest it. the reason is that do you think there is real value investment in the world？NO！ everything is the human’s confidence. Bitcoin is a bunch of code that it cannot be copied and limited volume. So that it gives the people’s imagination that its price will rise.

there is an investment idea I want to share with you. it's my harvest after huge loss of investment lessons. the first step is that: we need to answer a question to ourselves： who are you？ I am a common person without any powerful background and special information channel. So when we realized Bitcoin’s price rising and it's value to invest, that is wrong! because comparing to the investors who have invested in Bitcoin, we are the last guys know it and want to join it. if we buy Bitcoin, we become the last person to beat the drums and lose money. it's not only digital currency, but also all of the demo of investment product. so we understand what is our position in social and the various of investment products. Now, we just need to note economic situation and distribute ratio our asset such as digital currency, stock, debt, fund projects, ETF and cash.To the high risky investment product, you need to pay attention to your interpersonal network. specially, when Bitcoin price is rising and there are more and more people talk about it and join in it, we should analyze the guys social position and investment levels. if that guy is no relationship with bitcoin（investment history, job, family, friends）, we could sell the digital currency ASAP.
The above is my experience of Bitcoin investing. Thank you for reading my article. I am welcome you to give me some feedback if you want. See you next time.