Zero to One with Kardiachain Pt4

Reaching into the lives of millions

Welcome,

With this weeks analysis, I aim to provide a much deeper understanding of the potential Kardiachain holds by exploring the market place it aims to lead.

In the previous articles I have been painting a positive picture via some broader thoughts and opinions. I hope this weeks article will provide clarity on the data that brings me to such a bullish stance on this novel, breakthrough tech.

In the introductory article, I made mention that the title of this series, “Zero to One”, is a reference to the much revered tech investor Peter Theil and his book of the same title. I also offered a quote from the book;

“the single most powerful pattern I have noticed is that successful people find value in unexpected places, and they do this by thinking about business from first principles instead of formulas.”

The human tendency for imitation is a common roadblock to first principles thinking. If you pick up any self-help book for entrepreneurs you will likely find a chapter or two dedicated to the importance of getting the basics right first.

When people try to envision the future, more often than not, they project the current form forward rather than projecting the function forward and abandoning the form.

For instance, when attempting to visualise a world with cryptocurrency;

Bankers, boomers, asset hoarders, all sing off the same hymn sheet when it comes to discussion on this disruptive new asset class.

Often what sounds ridiculous to the majority, is clearly evident to the free thinker. This is something we have seen play out in real-time since the creation of Bitcoin.

First principles thinking can be easy to describe, but quite difficult to practice. One of the primary obstacles to first principles thinking is our tendency to optimise form rather than function.

We can look to FIAT currencies as the perfect example of this. After freely printing “unsound” money, central banks around the world are currently chasing their tails by attempting to optimise form via fiscal policy mechanisms like interest rates and QE.

By doing this they are neglecting the first principals of what makes money “sound”.

Sound money is money that is not prone to depreciation in purchasing power over the long term, aided by self-correcting mechanisms inherent in a free-market system.

Younger generations see the inherent flaws of FIAT currencies because they are baring the brunt of its fallacy. So it is no surprise that Bitcoin and its basis in first principal design, resonates and indeed draws understanding.

Simply put- With FIAT currencies, governments (driven by central banks) have vacated function, with quantitative easing and negative interest rates they attempt to optimise form.

Satoshi Nakamoto, with the creation of Bitcoin has optimised function.

Blockchain drawbacks

Whilst Satoshi has created better functionality via immutability, decentralisation and pretty solid fungibility, the PoW consensus algorithm still has its own set of imperfections that force further innovation in the space.

Taking a quick look at the flaws found in current models, scaling along with slow transaction times and bulky deployment mechanisms mean that mass adoption is yet to become a reality.

All 6 of the hurdles detailed above are addressed by the Kardiachain “Dual -Node” technology and the team behind it.

In working with governments to develop a healthy regulatory environment aswel as collaborating with Universities to nurture the very best of Vietnam's youth who are coming of age in this digital era.

Vietnam and the digital age

When investing it is important to revert to first principle thinking-

Keep it simple and ask yourself -

“How is my investment going to grow?”

If I am to maximise the potential appreciation of any investment it is essential to understand the growth factors that can facilitate success.

To answer this clearly it is not advisable to garner your conclusion based on other peoples opinions. The reason I choose not to follow opinion before hitting the “buy” button is quite simple, opinions found will almost always be drenched in bias.

In cryptocurrency, it is extremely common for market participants to gather investment ideas via social platforms like Telegram and Twitter.

I can scan through coinmarketcap and pick coin “X” based on premise that its price chart looks like something that hasn't “pumped” in a while, is showing signs of bullish accumulation and has a nice description of its use-case.

Like hoards of others, I could then follow the link to project X’s Telegram channel. . .

The response will generally will be, “..soon Sir”.

If I were to naively invest based on this rich pearl of wisdom offered by a potentially overextended, already invested community member, I might make profit, I might not.

Decisions should be taken only after thorough data assimilation, without analysis of data, you are making a gamble, not an investment.

So lets look at the data

If I want to invest in technology then I will look to find a market that isn't yet saturated. I can see clearly with the data above, South East Asia is growing faster than any other market on the planet.

By comparing the data from established markets like the US (0.9%), China (2.2%) and Western Europe (0.7%) to the growth of SEA (20%) I can better understand which market may offer the largest potential rewards.

Although the percentage growth shown above is extremely bullish I must also consider the size of each market because even if a market has 50% growth, if it is small in size, it may not sustain such percentage gains. A simple way to see this dynamic is by watching micro-cap cryptocurrencies that rise 200% one day and dump 60% the next.

Real growth will only be sustained by real numbers producing that growth.

Kardiachain are rolling their products out across 11 nations including the home country of Vietnam

The data examples above displaying market potential are so inviting, yet it is not the data that will propel the KAI Token into the top 10 cryptocurrencies, it is how the Kardiachain Foundation and its partners penetrate these numbers.

“How can a little known start-up like Kardiachain reach into the lives of millions?”

Emerging economies in the digital age all sprint towards modernisation thanks to the mobile phone
Vietnam in comparison to other “emerging markets”

It is quite clear that the best way for any tech start-up to impact the Vietnamese market and reach tens of millions of end users, garnering real market value, would be to penetrate the mobile telecoms user base.

Detractors may laugh off such a bold strategy, assuming that there is little likelihood of the countries leading Telco’s who generate revenues of $20bn+ annually, would ever allow such a small player have a piece of their pie.

“Who is the leader in the target marketplace?”

Of the regions Kardiachain aims to move into, Vietnam and South Korea rank highest in regards to dollar value

As can be seen above, Vietnamese state owned network provider Viettel is the largest player in SEA. It is only the already saturated economies of China,Australia and Japan who are producing Telco’s with larger numbers. None of those three compete in the South East Asian market.

Viettel have over 110 million users and are now getting a foothold in other emerging markets around the world

In knowing that Kardiachain aims to takeover the SEA market place it would be essential to aim for strong relationships with the likes of Viettel, not only due to their vast wealth but also because approval from a state owned mega- corp like Viettel would offer clear confirmation of government support in blockchain and Kardiachain in particular.

If such a partnership could ever be developed, then of course this would lead to an incredible and almost unimaginable gateway to mass adoption of the Kardiachain platform.

To gauge the possibilities of such a collaboration I prefer to again-avoid social platforms because they are a hotbed of rumours and rumours are not a basis for investment. Viettel have been very vocal in their support of blockchain technologies as can be read in the article linked below;

This article published in 2018 (the year Kardiachain was created) shows that the telecommunications market mammoth is not only fully aware of the advantages blockchain offers but is actively spending millions in R&D to ensure first mover advantage over its competitors in Vietnam and eleven other nations across Asia, Africa and the Americas.

“How realistic is such a partnership?”

Lets consider what we already know about the Kardiachain team when it comes to forging alliances with the markets largest players.

We have previously gone into depth about Geleximco Corp and the use cases it will create for KAI.

Continuing the current narrative we will focus on strategic plays into technological developments surrounding mobile/Internet/WIFI , which has been shown as the major opportunity for Kardiachains future success.

Partnering with market leaders

Kardiachain first started making waves when they announced their partnership with technology giant LG CNS, the blockchain/5G development branch of LG Global.

The chart above will help investors from the UK, Europe and America get a clearer picture of just how large a deal the Kardiachain partnership with LG is.

LG are a global brand and industry leaders in the field of technology advancement, partnering with Kardiachain just shows how groundbreaking the projects technology must be.

History doesn't repeat, but often rhymes

It’s been almost 40 years since the beginning of the largest (technology driven) economic boom in history. .

Prior to the initiation of economic reforms and trade liberalisation, China maintained policies that kept the economy very poor, stagnant, centrally controlled, vastly inefficient, and relatively isolated from the global economy. Since opening up to foreign trade and investment and implementing free-market reforms in 1979, China has been among the world’s fastest-growing economies, with real annual gross domestic product (GDP) growth averaging 9.5% through 2018, a pace described by the World Bank as “the fastest sustained expansion by a major economy in history.”

The comparisons to Vietnam and its current rise are easy to make as explained by one market commentator when discussing the news of Viettel creating their own 5G platform.

Vietnam has been following China in its economic development with a 10-year lag — both have been remarkably good at investing in hi-tech and have taken the 5G opportunity seriously,” said Stephane Teral from IHS Markit.

“I expect Viettel to remain focused on its home turf, and then, move to its foreign footprints in Burundi, Cambodia, Cameroon, East Timor, Haiti, Laos, Mozambique, Myanmar, and Tanzania — deploying 5G where the established vendors are not because they remain focused on more lucrative markets, and de-facto become a sixth force.”

Again we can refer to data when attempting to confirm beliefs;

Vietnam is on a meteoric rise

I believe that the data I have gone through today paints a clear picture for my choice of investment. I realise their is a lot of noise in this space. Since 2016, I have at times found myself drowning in it, unable to apply first principle thinking due to all of the misinformation spread by a mixture of poor understanding and greed.

Following the data and investing strategically, based on conclusions drawn from that data, will offer you conviction in your choices as we begin this explosive new crypto bull market.

twitter @bankless1

Disclaimer; Views are my own,I am not paid by nor part of the Kardiachain project

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Providing thoughts on value in the cryptocurrency market.

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