Unfortunately, we approached the end of the Kondratiev wave. We are now in an era of “without destruction, there can be no construction”. When it gets to a point where the global central bank’s monetary policy is exhausted, it results in tina major node of conflicts between the state and the company’s interests, and even worse. Unfortunately, A year of El Niño, the huge chaos is guiding us to the new era of uncertainties.

We foresaw these changes. Three years ago, we translated and wrote the investment series themed “Corporation Nation”. At that time, we believed that giant enterprises would play a major leading role than super-power nations; merchants and large enterprises around the world would truly enter the mainstream scene. We were optimistic that there will be a surge of a group of state-level enterprises with a market value worth more than 10 trillion US dollars, rising towards becoming key operators of industries across the globe.

What we are not expecting is that as the trend accelerates significantly with its attendant huge monetary outcome, it will not conversely cause multiple contradictions.

For example, three years ago, real estate businessman, Donald Trump was elected as president of the United States. One of the largest internet companies, Facebook, recently launched its indigenous digital currency — Libra. Some countries have cast aside traditional systems to allow marijuana, gambling, and electronic cigarettes which have become the mainstay of developed economies. Foxconn’s founder participated in the election of some leaders, Softbank’s son, the “Gambler” bent on ‘World Domination’ recently acquired Sprint for $20 Billion and the one serious loss of SpaceX rockets crushes the research and development capabilities of all other countries…

The Crash of The Old Paradigm

The high price has to be paid for the merchants to step up on the center stage. We are facing an unprecedented paradigm shift, almost all of the value coordinated systems has undergone a sharp shift, the intensity of such change is no less than the modernization impact of the late Qing Dynasty. Many bags to hold, the one to be emphasized is unprecedented:

Migration of production materials: The core production material required is no longer soil and petrochemical energy, but data and talents. The most important power, politics is completely incapable of constraining productivity and production relations. Even the influence of some special individuals transcends political party and government. In the real world, there is no reluctance. In the social network and media environment, it may be the Super Saiyan. For example, an internet-famous of the US real estate picked up a fight with the Democratic Party veteran, iron ore brokers control the price of steel throughout the whole country, and a small number of Jews control the sphere of public opinion of the entire US, which typifies a case of fait accompli.

National border chaos: The virtual world that barely existed 20 years ago has been adopted particularly by Americans. The internet activity of more than 3.5 billion virtual residents has changed the real world. On the internet, is Pope, Akhoond, or Jeff Bezos’s words more useful? Even with the beliefs and boasts, it is still not as strong as Bezos unplugging the socket. What the political tycoon feels more troublesome is the Libra, the new banknote in the virtual world, which opens the world into a new direction and it is used by 3.5 billion people. Is it a super cryptocurrency? The critical impact of the birth of Libra in the US dollar system directly penetrates all foreign exchange controls. If the Americans sit back and ignore, what will other countries do?

Trade system restructuring: We can indulge in the insults of HSBC, which is controlled by Ping An Group, to betray and sell HW, but it cannot be denied that global trade restructuring is not simply a national will, but the overall consensus of the enterprise group. The last round of globalization was the productivity expansion and capital expansion represented by multinational corporations. When the technology dividend is exhausted and the world factories in the industrial chain start to challenge the giants, the partnership will disappear. Everyone is no longer the division of labor between the upstream and the downstream, but the competition for the same ecological position. We can blame the US emperor for being too embarrassed, but it is the fact when the new generations smashed the international giants with no mercy.

Children only view issues from a different perspective while grown adults glean from a profitable vantage point of logic. We must admit that the globalization dominated by multinational corporations is over.

The end of the fiscal system: Before 2015, many Chinese investors were addicted to the “ Finance Holding Company”. They hoped that financial holding would become fully-licensed, emerge as an RMB issuance node, get inflationary income in disguise, and the biggest dividend for mixed operations — the infinite leverage brought by the circulation of RMB interchange, to use the infinite leverage to shake the super-asset sector. For example, like PingAn, become a key factor that called the shots. It is a pity that any logic can be compressed to zero infinite times once it expands with financial instruments. The boundary of inflation/issuing is precisely the boundary of our biological attributes — the newly added debatable population. When the newborn is shrinking, all financial business must go idling, and then the node cuts the node, eventually going to negative inflation and completing the elimination of wealth.

The new paradigm of power and value

Any modification of the old and new mandate will be accompanied by a huge collision and reverberating restructure. Almost everyone is thinking about how the big changes are coming soon, how their interests maximize the path of preservation. For investors with certain assets, I suggest that everyone should closely follow the origin of “power” and “value” for planning, and never repeat mistakes of the past.

After all, in the vicissitudes of the times, the most inaudible thing is the “experience talk” of big investors. Every round of transformation and the elimination of the last stage of amnesty is a high probability event. How can you listen to the dead? Starting from the essence, exploring the edge and finding new things is a relatively reliable path.

Currency is the exchange vouchers of the government bond, a perfect metaphor for the duality of power and value.

The image represents the source of power and the number represents the amount of the government bond.

Just like the perfect metaphor of money, power and value are two sides of one another. Power is the tool for value realization, and value is the basis for the existence of power. Power determines the network of production value (production relations), value is the power to transport nutrients, and constantly self-gain.

The core application of power is to find the best “fulcrum” in dynamic competition, and to exchange the minimum value for the global power control; the core appeal of value, in exchange for the same long-term deterministic benefit. The accomplishment of power decides the path of value maximization. The long-term value determines the eventual outcome of power.

Everyone knows the principle, but the point at which power and value converge is uncertain. Past and present approaches are struggling in the new round of competition for core production materials, which constitutes the main factor of today’s political and economic game: we see that from Strait of Hormuz, Religious Claims on Jerusalem, from 5G war to new a round of Star Wars, the friction and power struggles of the imperial borders continued to deepen, and the battlefield continued to change. A-shares and US stocks are also closely followed, vying to price suspected new core production materials. From rare piles of earth to industrial internet, chips, and agriculture, the concept backing conversion speed is faster than electric fans. I don’t understand that A-shares are not Tune, the real change is the change of the old and the new behind the power and the cognitive change of the value container.

In the past, the most important core production material was land soil+ petrochemical energy. The state as the main processing engine needs these as fuel. In the future, the new subject will revolve around civilization levels of regions, and the technology competition will be the main theme between civilizations; the real competition between civilizations will border precisely on the enormity and complexity of computing power of Cloud applications.

Doctor Strange has seen 14000605 endings before any incident starts.

Computational power is virtual yet it is the most potent force of accomplishments in this modern dispensation. Computing power is invisible yet it is capable of bending time and space. The most powerful person is always waiting to exploit vulnerabilities in the course of a given competition. For example, like Doctor Strange movie, he sees the future of more than 14 million kinds of incident endings. The most significant aspect of winning is not instantaneous power, but the chances of winning against competitors are always higher on the computing person. It is the weapon to change probabilities and the ultimate determinant of the eventual outcomes.

n the old times, all human capabilities were developed in the spatial dimension. From earth to space, to global trade, the ability of human beings in the time dimension was extremely scarce. The astrological numerology and astronomical calendars that have been passed down to the present are used in limited data collection modeling, forming a less reliable ability to lead to the future. Forecasting via divination or wizardry (Tang Ruowang, governor of the Qing Dynasty the director of the astronomical calendar bureau) which in any way results to near accurate outcome causes one to be treated as a god.

Only after the rise of the computing power, then shall we have the abilities to accurately forecast the future, we can inch on the timeline and lead the climate change a little. Computing power + data today can not only measure the weather but can be utilized for periodic research on nuclear weapons, thereby expanding the virtual world’s nuclear weapons research & development field and increasing the R&D iteration index level towards becoming true war forces.

In the new era, power is no longer reflected in the maximum output of the spatial dimension. Computational power is the super-production material of battle between time and the best container of power in the new era.

Computing power is the new Zeus

Structural Support of Value and Power

Computational power is intangible, far less likely to land, population, and gold which are easier to possess. There should be a solution to this. In the agricultural era, control of the most upstream distribution of production materials was usually under the control of certain influential elements. In the industrial age, the equity standard, capital control of production materials, and the construction of an industrial empire led to the formation of the power control system. What is the authority in the era of computing? How can we reflect your rights and control?

In the era of computing power, the previous basic conventions will change. In the past, power was reflected in the scarcity of supply. Without the requisite production materials provided by humans and the lack of fossil fuel, humans could not survive. In the future, power will be determined by the infinite supply of supercomputing power. Massive demand seems to have greater rights to speak. Without the support of cheap computing power, civilization and development will be hindered.

Before the appearance of Bitcoin, the realization of digital currency was thought to be dubious. Today, as the recording currency created by computing power, Bitcoin proved its strong vitality and belief in the unique grace of it in 10 years.

Core Assets/Recording Currency = Computing Power + Network support of Computing

Computing Power = Chips

Network support of Computing = Cloud Application +Payment Network system(Bitcoin)

One of the Google Datacenter

For cloud computing assets, many people have no objection to value and have doubts about the valuation cap. The cloud application SaaS service started with a valuation of tens of billions because it is believed that it could rise 100 times in terms of value. The cloud system is the real scarce gold resource. As computing power is more utilized, the biggest cloud system will rule over everything at a very low cost, becoming the oxygen of all applications and data processing equipment. In the long run, the Cloud Infrastructure will exceed the total market capitalization and the total output value of the entire real estate industry, having the largest single asset class in human history. The history of technological advancements, from forged weapons, steam engines, tanks to atomic bombs, personal computers, will enter more sophisticated dimensions. Technology drives the deep restructuring of the power structure, and slowly wipes out the modern state, allowing the super company/super capitalism to enter the historical arena. Cloud computing occupies top hierarchy in this new era and dominates the global technological space.

The cryptocurrency represented by Bitcoin is highly invaluable, more like virtual gold with limited supply. The so-called encryption is a structure and in a purely contemporary world, only mathematical algorithms can build such architecture, with uniqueness as its basis of value. Logical uniqueness (such as banknote security) ensures the value framework and the opportunity to become an asset.

People often say digital assets is not money, but a value container. How much value can its structure carry? What is the upper limit of its valuation and capacity? Uniqueness + limited supply + infinite segmentation is a condition to ensure that one can store the most value, thus making it a core asset. Whereas gold can only satisfy the first two points, bitcoin satisfies all three and can also be transmitted electronically.

The logical structure of the financial system in the past persists as it extends to all similar asset categories. It seems that there are a lot of asset categories but they are indeed the same. The logical structure of the crypto assets is convergent, and all the logical features will slowly be superimposed on the Bitcoin network as it ultimately becomes the core asset which causes higher efficiency.

Give up on Cognitive Inertia and Jump on New Historical Moments

Retrodiction and backtesting are huge traps that humans assume for themselves. We think that everything is linear. However, the moment of changing traditional processes, the profitable trading and methodologies that determine effective outcomes can be achieved either through a conscious push or via coincidence.

We must know that the historical moments are here, and the core values of the times have changed.

In the era of carbon-based civilization (industrial and agricultural stages), power and value are embodied in the space. The country is the ultimate control of the shortage of resources.

In the era of silicon-based civilization (computing power), power and value are embodied in the infinite supply of computing power, from the time dimension to the limit of probability.

The fear caused by the shortage of production materials in the carbon-based civilization is characteristic of humans. Given that every niche occupied is limited in necessary resources, we must try our best to compete, kill and fight for survival within the food chain. Before the outbreak of agricultural productivity, eating and drinking were necessary demands that were never met.

Therefore, even if the middle and lower classes complain incessantly about it today, their destiny will still not change. In a limited productivity environment, the typical human society systematically uses all means to plunder the lower society. Squeezing the underlying labor force is the first driving force of the social system and the true foundation of the monetary system.

After all, the banknotes that allow the poor to pay for their debts is the real currency.

Fortunately, the world is improving. We will soon venture into an era of an almost limitless source of energy, with almost unlimited labor, and unhindered access to robot-powered data analytics; thus enhancing seamless accessibility to relevant data resources. The shortage of material information is becoming less likely as famine is almost eradicated, people have more time to chase for self-satisfaction, and chasing values other than money, everything in the new world will be completely different.

It is extremely difficult to actively embrace the new world. The inertia of cognition and the inherent sense of shortage are stopping us from moving forward.

Chinese folks especially like the superficial history of authority tactics hope to obtain the basic ability of survival from the past deductive’s game theory. In fact, for the infinite computing power of the future, the game theory skillset is the most worthless, for a lifetime. The so-called study and reading the wrong information is the core reasons for poverty. In the historical public accounts such as Zi Zhi Tong Jian(Chinese history from warring states to the tang-dynasty) and Shi Ji( Records of the Grand Historian), the records are the game theory and killing of the emperor. There is no absolute account about the times and there is no technology terms record during the past.

In contrast, Western scholars study the success and failure of the government and human society more thoroughly compared to the Chinese. From the British economist Hayek’s “The Road to Slavery” to one of the greatest historians of the 20th century, Fernan Braudel’s material civilization, economy and the “fifteenth to eighteenth centuries Capitalism” explores the past and future of mankind from economic, cultural, historical, meteorological and geopolitical standpoints.

Pythagoras celebrating the sunrise

If you shift the timeline, the difference is even more pronounced. In 500 BC (the Spring and Autumn Period of China), the mathematician Pythagoras had proposed the Pythagorean theorem, formed the Pythagorean school, gathered a group of scientists and even raised irrational numbers. More than 200 years after the Pythagorean theorem was propounded, 450,000 people were buried alive in the war of Chinese Changping. If you use the same timeline to observe the history of East and West, this is why the Western leaders acknowledge science above theology, placing it over military law and governance, raising its standards to become the first driving force of society. The Eastern Continental Empire, including Russia, has always used science as a slave and tool of domination. This is one of the core reasons for backwardness and long-term underdevelopment of nations.

Entering the new era of power, authority, science is becoming a new theocracy which completely governs everything. In this dispensation of rapid technological advancements, as a member of the Eastern countries, we must remind ourselves that we must thoroughly spit out the staleness of the past, constantly commit to evolving, give up the game, forget about the sense of shortage, give up temptation and cognitive inertia. Every second of evolution in the current era is 100 times faster and better than history.

To conclude, computing is the only power, and its recognition constitutes true value.

Written by CEO, Frank Ling

Translated by Marketing Team