The correlation between the crypto industry and the US dollar trend

Source: Daoshuo Blockchain

1. The founder of ICP tweeted that artificial intelligence AI runs on the blockchain ICP. Does decentralized AI have potential?

ICP is a very old project, but there has been almost no decent progress in so many years, but many people are still concerned. I stopped paying attention to this project a long time ago.

As for decentralized AI, I have always believed that it is very necessary. But there are not many projects that are really moving in this direction.

Recently I saw an article online that mentioned that the current design architecture of NVIDIA GPU makes it difficult for devices built on it to run in a distributed manner at a distance that is too far apart. Only centralized operation can bring out the performance and advantages of its GPU computing power.

If this is true, then in the short term, the decentralized computing power that I imagine may be difficult to achieve. To truly achieve decentralized computing power AI, I am afraid that a chip must be redesigned to enable it to transcend the current physical distance limitations.

2. I bought XX BRC20 SHIB inscriptions. Compared with the current SHIB on Ethereum, the market value of SHIB inscriptions is much lower. Does SHIB inscriptions have potential in the future?

In the crypto ecosystem, generally speaking, the potential of imitation disks is quite limited.

Let's take meme coins and NFT, two sub-sectors that are most susceptible to emotional fluctuations in this ecosystem, as examples. Almost all successful cases have imitation disks: imitation disks of crypto punks, imitation disks of bored apes, imitation disks of MEME...

No matter how these imitation disks were when they first debuted, today we look at them again, and almost none of them still have decent vitality.

So I never chase imitation disks myself.

3. If the US dollar collapses...

In various domestic media, we often hear statements like "dollar collapse" or "US decline".

For these statements, if we hope to obtain useful information from them to guide our investment, we still have to distinguish the logic and ideas in them to see whether it is logical deduction or emotional venting.

Only information obtained by logical deduction without emotions can help our investment. Because as investors, if we cannot be objective and rational, we will definitely be beaten by the market.

From the historical trend, the national strength of the United States has indeed been on a downward trend since it reached its peak after the disintegration of the Soviet Union. But in the foreseeable future, no matter how much its national strength declines, it will still be difficult to shake its position in the world, especially its leading position in the field of science and technology.

The same is true for the so-called "dollar collapse".

If we only look at the US dollar itself, the collapse of the Bretton Woods system and the decoupling of the US dollar from gold in the 1970s did show that the status of the US dollar has been shaken. But that shake is only relative to gold, but relative to other currencies, its strong and monopolistic position has not changed at all.

Whether it was the West German Mark, the Japanese Yen, or the Euro that rose later, they could not challenge the status of the US dollar, and the facts proved that they were not as good as the US dollar.

So we still live in the US dollar system, and no matter how much the US dollar declines in the foreseeable future, this situation will probably not change subversively.

Not only is this true for the maintenance of the existing status, but the penetration of the US dollar into emerging fields is also difficult for other currencies to achieve.

We who are in the crypto world should have a personal experience of this.

Who was the earliest dominant force in the crypto ecosystem? What is the dominant currency? In which group does the pricing power lie? How was it dominated by the US dollar step by step, and finally the pricing power was obtained by the Americans?

Competition in human society often compares relative strength, not absolute strength. Many times, winning the competition is not necessarily because you are strong, but because your opponent is weaker.

If there is really a "dollar collapse" one day, I guess it is likely that the assets priced in US dollars will still be able to withstand the storm at that time, and the Americans will still have the pricing power.

Even today, the safe-haven asset gold and the risky asset Bitcoin are all priced in US dollars. This in itself speaks volumes.

Since the US's position in the frontier and currency fields is difficult to shake, it means that all future investments, especially those in the frontier, will still be affected by US policies and the trend of the US dollar.

This fact is unlikely to change in the lifetime of our generation.