The top-level logic of investment is the understanding of values

On the weekend, many self-media outlets spread a video of Wang Xing and Wang Xiaochuan discussing Bitcoin.

This video was recorded in 2014 (see the reference link at the end of the article). At that time, I suspect that the vast majority of us had not heard of Bitcoin, or even if we had, we were filled with disdain, misunderstanding, or hostility towards it.

Discussions in such a temporal and spatial context can reflect differences in thinking. I suggest everyone watch this video and compare it with their past selves to see what we can comprehend, reflect on, and learn from this conversation.

In this dialogue, several points left a deep impression on me:

• When discussing why Bitcoin is impressive, Wang Xiaochuan instinctively mentioned technology; whereas Wang Xing talked about how it involves many other aspects. After this prompt, Wang Xiaochuan then mentioned sociology.

This reminds me of a topic I often think about in investment:

What position does the understanding of technology occupy in investment?

I believe technology is undoubtedly important, but at a higher level is our imagination regarding the use and significance of technology—what will this technology change? How will it impact us?

If we cannot think of this layer, we will unconsciously focus on the technology itself, thus comparing the merits and demerits of the technology and even developing a shortsighted viewpoint: this technology still has many flaws, so this application is not worthwhile, this thing is useless, this thing has no value.

However, if we can think of the significance of technology, we will consider the transformations it may trigger and see the brilliant future presented by our imagination.

In my limited understanding, I see that all the predecessors who have achieved remarkable results in the venture capital field think in this way.

• Wang Xing mentioned that when he and his peers discussed Bitcoin, he compared it to a series of applications from internet giants like Facebook. He believes that if they were given similar environments and opportunities, they could also develop similar applications; however, Bitcoin is something they could never have developed. Bitcoin is entirely a whimsical invention.

I find this understanding profound.

When I look at the experiences of some investment masters and predecessors, I often have this feeling: for some people's endeavors, given similar conditions and opportunities, I might also be able to achieve them, but for the achievements of others, even with better conditions, I could never accomplish them in my lifetime.

This is a key distinction between the excellent and the top-tier.

• When discussing buying Bitcoin, Wang Xing directly stated that he bought three, purely to show respect, while Wang Xiaochuan did not express any opinion on this.

I often have this approach in my own operations; occasionally, some projects I invest in are not for making money at all, but rather for a past dream or to express a kind of respect.

I believe that sometimes this romance and purity can bring unexpected surprises during the investment process.

• When discussing the significance of Bitcoin, Wang Xiaochuan believes that Bitcoin's role is to subvert the government, and he thinks that the government cannot be subverted, so the significance of Bitcoin is limited.

Frankly speaking, I believe this understanding reflects a person's ideological background and can also reveal the boundaries of a person's imagination, even whether they have the ability to break through their thinking framework.

First of all, I do not believe that Bitcoin's role is to subvert the government; I am more inclined to think it subverts centralized transfers and banks.

Secondly, what he thinks Bitcoin's role is does not matter; what matters is: he believes that the things Bitcoin can subvert are unchallengeable.

This is the deeper core reflected in his viewpoint.

His idea reflects that deep down in his thinking, he believes there are some things that cannot be broken through or challenged. More specifically, in his mind, there is a sacred and inviolable authority in the world, and breaking through that authority is absolutely impossible.

In my view, one of humanity's greatest qualities is boundless imagination. What is boundless?

Boundless means unrestrained, daring to unleash imagination, daring to let it soar.

If imagination still has boundaries, how could technologies like Starlink, colonizing Mars, and reusable rockets possibly be realized? Which of these technologies is not an application that breaks through the boundaries of thinking? I do not deny that these applications are technically impressive, but I believe that without a breakthrough in thinking, no matter how impressive the technology is, it cannot be discussed.

His thinking is locked within a predetermined boundary, so his imagination is destined to remain within a limited range.

There are many thought collisions in this dialogue that are worth our repeated contemplation.

After watching this dialogue, one thing I deeply felt is:

When we encounter epic investment opportunities, what matters is not the understanding at the technical level, but the understanding at the level of values (or ideology).

For Bitcoin, many people have completely missed this epic train from beginning to end, and I believe the root lies in their values, just as Wang Xiaochuan perceives: how could this thing possibly XXX? So Bitcoin is just XXX.

Even when Bitcoin surpassed $100,000, many people still clung to that outdated understanding that I could recite with my eyes closed.

The fast train of history rushes past, leaving behind those with outdated understanding without even a greeting.

Reference link: https://x.com/Morris_LT/status/1865392908272304191