A Storm is Brewing for Bitcoin in 2021

Today I would like to share with you my feelings about two recent news stories.

The stormy U.S. election made a big deal last week when supporters of the incumbent president gathered in large numbers in Washington, D.C., in high spirits and dissatisfaction with the election results, and some even stormed the Capitol in an all-out war drama with the world watching.

In the aftermath, the incumbent’s social accounts, including those of nearly 70 million of his supporters, were blocked, and Parler, a communications software commonly used by these supporters, was taken offline by Apple and Amazon. The president of the United States is now completely silenced in the mainstream media and on social channels.

Many people have expressed their views on this matter from a political perspective, but as a digital currency investor I am more concerned about the monopoly of power by the Internet giants reflected in the event itself. This monopoly has been enough to sway a country and society.

We have had a first-hand experience of the influence of the Chinese Internet giants before this, and this time, the world has experienced the influence of the centralized Internet giants on society. And this influence in my opinion has not only deviated from the original purpose of Internet development, but also seriously threatened the information security of each of us.

It is worth noting that after the current president and his supporters were completely blocked, these supporters quickly turned to Telegram, which has privacy as its ultimate pursuit.

And Telegram also tried to issue its own digital currency in 2019, but was called off by U.S. regulatory authorities. This shows on the one hand that Telegram itself is only a semi-decentralized product that is still bound by regulation because it is not completely decentralized enough, and on the other hand that Telegram is also intent on moving toward complete decentralization.

In my opinion, the greatest significance of this event is to announce that the existing centralized Internet is heading towards the dead end of monopoly. Although it will still develop technologically and prosper in terms of applications, its concept and ecology have been solidified and it is impossible to create disruptive miracles.

Internet 2.0, marked by traditional centralized applications, is dead; Internet 3.0, marked by blockchain and digital currency, is the future. This future is coming to us head-on at an accelerated pace.

In my articles, I often share with you the experience of Warren Buffett Sr. in investment. Across Wall Street for decades, the old gentleman in his investment career to cooperate and appreciate not many people, his old partner Charlie Munger is one, and Oaktree Capital (Oaktree Capital) founder Howard Marx is another.

Oaktree Capital is the world’s largest distressed asset investment institution, and the world’s top asset management company. Howard Marks is the co-founder of this institution. His investment philosophy Warren Buffett very respected, and his memo to clients in each issue is also one of Buffett’s required reading materials.

The main reason why Warren Buffett is a great admirer of his philosophy is that he focuses on buying without hesitation when the price of an asset has plummeted, especially when the price has fallen significantly below its potential value.

Like Buffett, Howard Marks used to have an extremely negative attitude towards bitcoin and said, “In the long run think bitcoin will have no substance.”

However, in his recent memo to clients, he mentioned that his family now owns “meaningful amounts” of bitcoin as well as other cryptocurrencies. While he didn’t directly state his latest views on Bitcoin, the mention of Bitcoin in the memo is an indication that his attitude is starting to change and he is starting to look at Bitcoin again with a new mindset and perspective.

In 2020, we have seen too many traditional institutional investors change their views on bitcoin and buy bitcoin in stride from then on, but these institutions are not comparable to Oaktree Capital in terms of both strength and influence.

Oaktree Capital’s entry is another landmark bastion of Bitcoin’s entry into the traditional financial sector.

Looking ahead to the rest of the year, I can see a more violent storm brewing ahead.