Berkshire, the giant whale, is beyond the reach of retail investors
Birth of Berkshire
In 1956, at the age of twenty-six, Warren Buffett formed an investment partnership to acquire small and medium businesses and take stakes in large corporations. In 1965, the partnership gained control of Berkshire Hathaway Inc., then a publicly traded textile manufacturer. Buffett’s partnership was quickly dissolved and Berkshire’s equity was distributed to the partners. Berkshire has since acquired businesses of all kinds, in insurance, manufacturing, finance and media. As of 2015, its investment returns have significantly outperformed market benchmarks such as the Dow Jones Industrial Average or the S&P 500. From 1965 to 2015, the Dow rose 18 times, while Berkshire rose 12,000 times, a compound annual growth rate of 21%, double the S&P.
Despite the transition from a partnership to a limited company, Buffett has always maintained a sense of partnership within Berkshire . These spiritual legacies are reflected in the first of fifteen principles stated in Berkshire’s “Shareholder Handbook”: “While our form is a limited company, our attitude is that of a partnership.” In Buffett and Munger The giant whale at the center swept the capital market, and although a large number of investors tried to imitate Buffett’s investment philosophy, few followed Berkshire’s corporate practices. Berkshire has repeatedly grown stronger in the midst of numerous institutional investors.
The graceful curve of value investing
Berkshire’s investment practice is full of initiative, using a sensitive business sense to take the initiative to attack, and always maintain the professional quality of discovering value targets, which makes it possible to always meet good companies one step ahead in the process of investment. Among them There is no shortage of companies that we are familiar with Coca-Cola, Apple, Bank of America, and more. And through the “value” investment in the end got a pretty good return.
Just holding Coca-Cola this move is enough to shock the general investment institutions. In 1988, Buffett bought Coca-Cola stock for US$593 million. In 1989, he increased his holdings to US$1.024 billion. He continued to increase his holdings in 1994, with a total investment of US$1.299 billion. Since then, his holdings have remained unchanged for so many years. This kind of generosity is astounding. Of course, every Berkshire investment is in line with a long-term growth trend.
Berkshire’s record or Buffett’s charisma makes people want to trade everything they have for more chips, and people want to earn more. But from a personal standpoint, we have to admit that such a threshold is bound to keep us out. Even if Berkshire has a high return on investment, it has entered the pockets of institutional investors. Really irrelevant! So how can individual investors choose a good investment method?
Grayscale Fund’s New Wine and Old Bottles
One foot on Wall Street and one foot on cryptocurrency
Before we start to introduce Grayscale, we first need to know about Digital Currency Group (hereinafter referred to as DCG), the founder of the self-proclaimed Berkshire Hathaway encryption whale of the encryption world. Its scale has already exceeded 10 billion US dollars, and there are many traditional capital giants behind it, including Mastercard, Bain Capital, Canadian Imperial Bank of Commerce and New York Life Insurance. DCG has made outstanding achievements in the crypto industry successively, investing in Coinbase, the world’s largest trading platform, Decentraland, the leading Metaverse concept, and so on. Its Grayscale, CoinDesk and Genesis are especially famous. both.
Only in and out of unilateral rise
In terms of operation mode, we can understand Grayscale’s trust fund as an ETF, but it was investigated by the SEC in 2014, so since then Grayscale has deliberately stopped the “redemption” on the grounds that the SEC will not approve it. “Back” function, and never fight for it again, which has led to this ETF becoming a multi-currency encrypted fund pool that can only be entered by multiple cryptocurrencies led by Bitcoin, and the digital currency that investors rushed into has no channels. It can be retrieved, and it can only be cashed in the OTC market with the trust given by Grayscale, so the amount of currency held by Grayscale Fund will only increase unilaterally. This is why the price of Grayscale Trust has always been at a premium.
Retail investors still have nowhere to go
As of now, Grayscale Trust holds a total of 13 currencies, which are the leading projects in the sub-tracks such as BTC, ETH, LINK, FIL, MANA, etc., although it saves investors from worrying about returning to zero risk, but in the possible There is still a lack of diversity in the power of choice. Although Grayscale is a cryptocurrency trust, its overly centralized management is the same as Buffett’s Berkshire. At the same time, the door of Grayscale Fund is not open to individual investors. Opening up, like Berkshire, is a hotbed for institutional investors, but it still keeps some individual investors away. This way of putting new wine in old bottles hasn’t improved a little, so Grayscale Fund doesn’t seem to give a better answer about the way individuals invest!
Entering the game with DEIFI, TokeMak is not ideal
Open up new ways to enter
Looking back at the crypto market, DeFi can be said to be an inspiration for this bull market, and the Yearn platform has made the story of BTC play out again. Today, people may like to use digital-level words such as DeFi1.0, DeFi2.0 or DeFi3.0 to define the development process of DeFi, but this is not the most important, the important thing is that DeFi has been developing, and now The governance scheme combined with DAO has become one of the popular development directions.
TokeMak, an asset reserve pool that iterates on liquidity mining, first proposed and applied the governance model of DAO TO DAO. TokeMak’s operation model creates a reactor (asset pool) for each single liquid asset. The reactor is mainly composed of two roles. Liquidity providers and liquidity facilitators.
As an example, here is the reactor created by TokeMak and AAVE:
On the left is Liquidity Providers (LP, Liquidity Providers): deposit a single asset into the Token reactor to obtain the corresponding tassets certificate, to ensure that the deposited asset can be exchanged 1:1 when exiting. During the liquidity provision period, the non-TOKEToken income obtained by the reactor assets providing liquidity to the outside world will be directly deposited into the Tokemak protocol and managed by the Tokemak DAO (composed of Toke holders). Liquidity providers are only rewarded with Tokens.
On the right is the Liquidity Directors (LD: Liquidity Directors): use the pledged TOKE to control the whereabouts of the liquidity assets in the designated reactor. They stake their TOKE into a given reactor and use that stake as a voting right to direct liquidity to the Dex of their choice.
The current reactor-bootable decentralized trading platforms include Uniswap, Sushiswap, Banlancer, Deversifi. Liquidity guides will also be rewarded with Tokens. In this way, TokeMak has greatly given investors the highest authority in terms of entry method and optionality, and at the same time, in terms of income method, the previous active income has been transformed into passive income. This step is indeed in addition to Institutional investors have also given individual investors some hope.
lack of support
If we look carefully through the entire “investment” steps of TokeMak, the final income of both the liquidity provider and the liquidity leader all comes from TokeMak’s platform Token. At this time, we have doubts, assuming that TokeMak’s platform token does not It is valuable and loses a lot of users (including institutional and individual users), and TokeMak will only be eliminated. If the hypothesis is true, where will investors go?
Take the best of BlackHoleDAO
Superior protocol mechanism
BlackHoleDAO builds a new standardized model on the basis of DeFi3.0. BlackHole DAO’s destruction mechanism solves the imbalance between high inflation and deflation in the market by drawing on the principle of traditional stock market split and merger. And in the new mechanism, the credit lending service based on DAOs is launched. It can be simply understood as an asset management company service agreement, which includes splitting and merging functions, and provides unsecured credit loan services based on the agreement itself. We can think of it as a lending business similar to a bank.
No inflation risk
BlackHoleDAO also cleverly uses the principles of stake and bond in Olympus, and has been upgraded. In order to solve the original high inflation problem of Olympus, BlackHoleDAO enabled a deflation mechanism on the premise of determining the total amount of Tokens, and at the same time of passive income, the original inflation problem was also easily solved.
Asset management DAOs
BlackHoleDAO Protocol is supported by the treasury, in which smart contracts connect VC Pool and Donation Pool. VC Pool supports multiple currencies for investment, part of which is used to destroy BHO (BlackHole DAO Token) in the liquidity pool, and the other part is used for After the successful investment in DAOs, the Donation Pool accepts direct investment in BUSD from investment institutions and DAOs teams, that is, individuals, and finally returns 2 times BUSD. In turn, the Transaction Fee Pool provides operations for the Donation Pool, DAOs community, and Black Hole Reactor. Assure.
BlackHoleDAO’s most noteworthy VC pool, we can understand it as another way to buy Bond, except that the VC pool only accepts valuable certificates such as non-Stablecoin, NFT, liquidity LP, etc. Token, NFT, liquidity and other online VC pools LP is voted by the currency proposed by each DAOs community, and it can go online after approval.
Strengthening Supportive Stocks (BHO)
Among them, after the VC pool reaches a certain amount of assets, the liquidity LP will take out a certain proportion of different Tokens to group LP, and then provide liquidity and LP lending services to leading products such as Curve, Compound, Aave, etc. , the income obtained will all enter the VC pool to support the circulating value of the stock (BHO).
Tokens that can be selected into the VC pool need to be strictly reviewed and screened by the DAOs community before they can pass, which can prevent malicious behavior from causing a long-tail drain effect on potential assets, thereby avoiding the shrinkage and inflation of the stock (BHO), It seems that there is a kind of decentralized grayscale fund here, and it is more friendly to individual investors. There is no doubt that the excellent precipitation assets will support the stock (BHO) of the BlackHoleDAO Protocol to walk out of a steady upward curve. At this point, we seem to clearly see a solution that can satisfy a variety of investment users.
BlackHoleDAO is more like a decentralized Berkshire company. All users invest in digital assets in exchange for BHO (similar to stocks), and rely on asset appreciation to provide value support for BHO. The development trend of digital assets is high-speed upward. BHO brings together almost all types of digital assets and passively manages these assets.
Look at the difference between the above 4:
Compared with the above investment paradigms, the investment evolution from Buffett’s Berkshire to Grayscale Fund to DeFi can be said to have undergone great changes, and one point that cannot be ignored in this process is the increasing compatibility with investment users. more inclusive.
The development of investment methods allows us to provide various users with investment solutions that suit them, and the initial active income has gradually turned into passive income. If someone needs me to recommend an investment method that suits them today, I think BlackHole DAO can give you what you want.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-right-way-to-go-from-traditional-investing-to-crypto-market-defi-nuggets-investors/
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