China’s Top Angel Investor Believes Blockchain Will Not Create a New World
Wang Qiang, co-founder of the language training company New Oriental and a famous Chinese angel investor, shared his insights into the hot topic of bitcoin and blockchain at a forum on Monday. He believes blockchain technology is impossible to create a new world.
Many people across the globe believe that bitcoin and the technology underpinning it, called blockchain, will gain tremendous popularity in the future and create a new world. But the co-founder of China’s leading investment firm, Zhen Fund, goes against it by giving two reasons:
First, every community must have a center. If the community is decentralized, it means deregulation and anonymity will turn into reality, which create room for unscrupulous practices.
Second, the centralized organization will not likely to fade away anytime soon automatically. If decentralized bodies are considered to be legal, then they must be officially recognized by the current “center” first.
Wang added that encryption is at the core of bitcoin and blockchain, which makes anonymous transactions possible. However, the so-called anonymity blockchain delivers is only limited anonymity rather than complete anonymity, and should get approval from the current centralized authorities.
“If you seek to get rid of the central controller, you must be get approval from the controller first. The value of decentralized projects only can be realized when having a legal basis.”
He believed bitcoin and blockchain may be integrated into the existing system through legalization, but they are impossible to replace the current centralized controller.
What’s more, he shared his profitable pieces of advice with investors:
The key for a successful investment is to figure out future trends. Not all the projects you have invested in will achieve success in the end and many are often stalled or aborted half way.
You probably thought the internet industry would have a promising future in the mid 90s , but you still did not invest in Amazon and Google, therefore, it means you have not invested in this booming industry ever. The same is true for the blockchain world.
If you believe blockchain represents the future, the priority is to identify which blockchain projects will have a good chance to stand out in the future, and do not miss them.