Cryptocurrency Is Worth Betting on in the Future

The Chair of the US SEC has spoken, predicting that within two years, the entire US financial market will move on-chain. While this statement is a bit exaggerated—even as an industry insider, I don't quite believe it will happen completely within two years, given that the scale of the entire US financial market is dozens of times larger than the crypto market—it's true that shifting financial asset trading on-chain is a transformation currently underway. This is exactly what's happening with the expanding market for RWA (Real World Asset) transactions.

Unlike the open attitude in the US, we are tightening regulations on virtual currencies, including RWAs and stablecoins. There’s not much to say about this, since the underlying systems are different and both sides are considering their own development and stability. But for individuals, the coming years will bring another wave of wealth transfer. Whenever I mention this, I feel fortunate to have learned about this industry early on, and even a bit sympathetic toward those limited by their perspective.

A major recent event is the news about Zhejiang Financial Asset Exchange’s wealth management issues, with users who invested huge amounts in these products now in a panic. These people are facing significant investment risks without having enjoyed high returns. In a sense, as long as wealth management can’t guarantee principal and interest, it’s an investment.

This cycle in the crypto market has indeed been difficult, but to be honest, it’s also because everyone has developed a path dependency—overly expecting high returns from altcoins, or even ultra-high short-term returns. If we ask ourselves honestly, if we had always invested in mainstream assets, especially if we’d bet on Bitcoin from the start, we definitely would have made big profits. For upcoming investments in the crypto industry, I believe that shifting the investment focus to mainstream assets will allow us to enjoy excess returns in the future.