Using the past to learn from the present - the origin and future of blockchain finance
The collision between technology and capital, and the game between innovation and regulation are the main theme of the development of the capital market.
In the financial market driven by blockchain technology, changes in models, systems and orders caused by technology are happening at any time.
Looking back at the development history of the digital asset industry, in the era of blockchain finance 1.0, the price fluctuations of digital currencies represented by Bitcoin are too large, digital asset exchanges still have not formed a unified and fair market price, and the market lacks third-party authoritative ratings, Custody, auditing and other service organizations, traditional institutional investors and value investors are still on the sidelines for digital assets that lack a profit model, reasonable valuation and cash flow.
In the period of blockchain finance 2.0, the no-threshold equity crowdfunding for global individual investors has made many unproven business models and early companies that lack profitability directly become public companies, and the extremely low cost of public offering has driven out bad coins. Good money became the norm.
At present, the global macro economy is in a stage of tightening liquidity, and global risk assets are facing downward pressure in 2018-19, and the main logic of investment turns to the pursuit of asset liquidity. The soaring U.S. bond yields have been transmitted to the stock, bond, foreign exchange, commodity, and real estate markets through the pricing mechanism, causing a resonant decline in global risk assets, and the entire digital asset market has not been spared.
Bawei believes that only by forming new breakthroughs on the asset side and the capital side can the deadlock be broken. The prerequisite for a breakthrough is compliance and self-discipline.
The final form of the financial market in the future should have exchanges providing unified prices for digital assets, professional market makers providing liquidity, and professional institutional asset management institutions and custody institutions. The different risk preferences of investors also determine that investment products with different risk levels will appear. In addition to high-yield equity products, lower-risk fixed-income products, asset-backed financial products, and hedging investment products will constitute digital investment products. An important part of assets.
The digital asset market is inherently a cross-border and innovative industry. Overseas countries and regions dominated by the Anglo-American legal system are making steady progress and encouraging innovation (the United States, Singapore, Hong Kong, etc.). Regions such as Cayman continue to serve as registration and tax havens for global companies.
This year, the theme of the "2018 Jingshan Report" hosted by the China Finance Forty Forum (CF40) is "Strengthening Market Mechanisms and Building a Modern Financial System". In the sub-report "Financial Market Reform in the Modern Financial System", Hong Lei, President of the Asset Management Association of China, pointed out that the capital market is the breakthrough point and the first cornerstone for the rise of a great power. Only by developing a financial system dominated by the multi-level capital market, establishing a capital culture that emphasizes long-term value, national interests, and shared win-win results, and long-term changes in capital formation and operation methods from the inside out, can the strategy of finance in the rise of great powers be brought into play Support and fundamental protection.
In the process of deepening financial reform, special attention should be paid to the construction of institutional mechanisms for innovative capital formation capabilities. my country's financial system must improve the efficiency of innovative capital formation, so as to most effectively improve the technological content of the industry, cultivate new economic enterprises, and form institutional arrangements with the ability to resist risks.
He also talked about the requirements of the modern capital market for regulators: while maintaining market order, regulators must fully respect the independent trading rights of market participants, not interfere with normal market behavior, and let market mechanisms play a decisive role in resource allocation. Establish a clearer supervisory responsibility and a supervisory system with a clear division of labor.
In the issuance, circulation, trading, custody and other aspects of digital assets, the industry should help regulators enrich and improve regulatory rules through practice under the framework of abiding by the laws and regulations of various countries; on the other hand, we also call for policy coordination among countries , Establish international industry organizations, industry guidelines and technical standards.
The following is an original sharing by 8 Decimal Research: the origin and future of blockchain finance. by"The Third Wave of Blockchain"Based on Qi Bin's "The Great Game - The Rise of the Wall Street Financial Empire", Pang Huadong's "Thoughts on the Problems, Evolution Path and Endgame of Digital Asset Exchanges" and relevant historical materials on the development of the Chinese and American securities markets. We sorted out the development context of the traditional capital market, and made a comparative analysis with the development process of blockchain finance, so as to deduce the future form of the digital asset market.
Eight Dimensions hopes that by learning and disseminating the most emerging concepts and models in the world, it can promote innovation in technology, finance and systems, and create a better digital world.
Author: Wei Ran & Kadeem Clarke
Original by Bawei Research Institute, please indicate the source for reprinting
Original by Bawei Research Institute, please indicate the source for reprinting
Research produced by Eight Dimensional Research Institute
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