Today’s Bitcoin ecosystem, most protocols have solved the issue of asset issuance, but lack paradigm innovation.
In fact, paradigm innovation has long existed, or is quietly brewing, but the market often cannot find them.
Imagine a situation. If a new thing appears and calls itself “paradigm innovation,” and at the same time issues relatively fair, accessible assets for everyone. Then people will flock to it – the new thing looks impressive, “strike first and talk later.” After that, these people will promote this asset, making more people believe it is the so-called “paradigm innovation.” If something appears without issuing new assets, and no group of people go all in, no one will claim that this thing is paradigm innovation.
So, if we set aside asset issuance, how should we define true paradigm innovation? Good question.
True paradigm innovation will not cause short-term FOMO emotions in the market, but will survive in a cyclical state.
Returning to Atomicals, our community always claims that AVM is paradigm innovation, and I believe it. But a friend asked me, if AVM is really impressive, shouldn’t ARC20 assets rise before AVM appears? Why do they keep falling despite the community’s generally positive expectations?
Actually, the market has already told us that the public is not yet buying into AVM, whether they are holders or outsiders.
If we change perspectives, if AVM is a new channel for issuing assets, and a leading token will appear on AVM after it goes online, open to MINT. Then today there will definitely be expectations across the network, gathering momentum, tutorials everywhere, everyone learning, and everyone prepared will be confident in the future of AVM.
Yes, in fact, so-called paradigm innovation, even if it is indeed paradigm innovation, will not be an “asset printing machine” innovation. Only by issuing new assets and letting everyone go all in on new things will there be an “asset printing effect.”
It is well known that the Bitcoin ecosystem is a large market, but everyone is only buying into asset issuance.
Who will buy into the true application ecosystem?
However, have you noticed that the “asset printing effect” in the circle is deteriorating? This is a good thing. After running around and buying into various new asset issuances, people will realize at a certain stage that not all new assets are good assets.
In the second half of last year, a bunch of new protocols, any one of which could be a hundredfold bottom, at least I personally got into two projects with over a hundredfold return. At that time, as long as you were diligent and discovered new projects, even if you missed the beginning of the year and the middle of the year, there would still be another wave at the end of the year. But this year, this pattern has changed, and the returns from buying into new projects are far from what they used to be.
When a certain turning point is reached, the losses will be made up, and the profits will be made; the market will continue to return to the combination of “mainstream coins + altcoins.” Bitcoin rises, and other altcoins follow, with some having prospects, applications, and value, rising slightly more.
In this circle, when you are sure that the bull has arrived, it is difficult to hold back, and you always have to buy something to keep up with the bull market. At this time, “useful” coins will start to be discovered.
Apart from the innovation of asset issuance, the Bitcoin ecosystem inevitably needs innovation at the application layer.
The word “ecosystem” may bring to mind everything already on Ethereum – various Fi: DeFi, SocialFi, GameFi, various independent concepts: DAO, DID, SBT, storage, L2, XXX to Earn, various module tokens: Meme, fans, PoW, AI…
Back to Atomicals, we claim that AVM is “paradigm innovation” precisely because it will bring everything on Ethereum.
The fact that AVM will come out is beyond doubt, and the fact that AVM can achieve a certain degree of programmability is also beyond doubt.
A friend asked in my comments section last time, is there any way to achieve Defi on BTC L1? I replied simply with this paragraph: “AVM expresses 0 and 1 binary through coloring and de-coloring, and then achieves programmability, one of the applications that can be done from an application perspective is Defi. Just saw a new project doing preparations in this area today @spiralismxyz, their official website already has the words swap and stake. This is why Atomicals is of great significance for the development of BTC L1.”
As a result, I realized that many people didn’t know that AVM would bring Bitcoin to a wide “application ecosystem.”
However, even if these applications are all implemented, I believe the market will not buy into it immediately – because it is difficult to quickly attract a group of new people and new money, and it is also difficult to satisfy the public’s strong desire to “make quick money in a new place.”
So what is the significance of these new applications for ARC20 assets? I want to use a word I have been using all along – mainstreaming. Whether something is valuable is one thing, whether the public knows it, uses it, and cannot do without it is another. The latter has an extremely profound impact on the former. Price changes are very fast, and if everyone suddenly knows that something is good, the price will change rapidly. But if everyone slowly learns about its value, the price may not fluctuate much, but behind it, many sudden good “seeds” will be brewing, which are extremely important for the life and death of a coin.
Let’s talk about the most common topic of “listing” for a bit. Why would a purely speculative coin list on Binance? Something that Binance believes can survive and withstand a round of bull markets will be listed on Binance. The latter is based on those “seeds” (whether the public knows it, uses it, and cannot do without it).
Things like AVM are seeds – whether this seed can achieve “mainstreaming” is not visible today, and it is also a reason why the public is not buying into it.
We need time.
When everyone is “not buying into it,” who buys and who rises and falls is not important at this time. What is important is to endure for a while, who can survive, who is truly useful, who will bring sustained benefits to Bitcoin, be recognized for its value by the Bitcoin community, and be pushed to the mainstream of Bitcoin applications.
When true paradigm innovation appears, people will not realize it immediately. Only when the ecosystem of this new paradigm flourishes, more applications appear, more users flock in, and even the next step of the entire ecosystem development cannot do without its application assistance – people will realize that it is paradigm innovation.
Atomicals is an ecosystem that I deeply understand and am constructing, and I will tell people that it is paradigm innovation in my mind. But in places I cannot see, I believe that the entire Bitcoin ecosystem is brewing many deep paradigm innovations that “cannot make quick money in the short term.”
In terms of the overall direction, we should fully support the concept of the entire “Bitcoin ecosystem.”
(Original article written by Leaper from the Quark community on April 23, 2024)
