Essay on Mr. Zhu Weisha’s “Buy Bitcoin or NVIDIA”

When I read Mr. Zhu Weisha’s article “Buy Bitcoin or NVIDIA?“, it was inspiring and rewarding. In this essay, I will share my thoughts with you.

This essay is written with three questions: What is NVIDIA? Why compare with Bitcoin? Is buying them an investment behavior?

1. What is NVIDIA?

If you are not familiar with NVIDIA, you should know ChatGPT. NVIDIA DGX™ Supercomputers produce ChatGPT and provide support for large language models. NVIDIA’s US listing code is (NVDA). The lowest stock price in October 2022 was $108, which rose to the highest of $974 on March 8, 2024. The company’s market value is $2.3 trillion, approaching the Apple company’s top one.

NVIDIA is stepping on the trend of AI, and this company has gained popularity by providing solutions for artificial intelligence through chip design and computational learning platforms.

In this sentence, NVIDIA’s official website introduces itself: “NVIDIA is leading the way in adopting accelerated computing to address unresolved challenges. Our work in AI and digital twins is transforming large industries worldwide and will have far-reaching impacts on society.”

Mr. Zhu elaborated on his views on NVIDIA from the following aspects:

Calculation based on NVIDIA’s own data

Jensen Huang’s View on Competitors

Jensen Huang’s views on industry development

Cathie Wood and Mr. Huang have different opinions

Understanding the Future Development of Artificial Intelligence is Key to Valuing NVIDIA

Can NVIDIA reach 3 trillion Market Cap?

Mr. Zhu believes that artificial intelligence is far from reaching the crazy level of application, the profit model is not clear, and there is a requirement for value return, which will affect the upstream supplier NVIDIA. Some people predict that NVIDIA’s market value can reach 4 trillion yuan. Unless there is explosive growth in artificial intelligence, it is impossible. 3 trillion is already a high annual target. Reaching a market value of 3 trillion, the increase will be around 27%.

2. Compared to NVIDIA, Mr. Zhu believes that:

Bitcoin does not need the profits, no need to improve their products. So there is no competition;

Bitcoin has no ceiling;

Bitcoin’s customers are mature and can trade stocks, which is ok.

Bitcoin is a global customer with a more extensive customer base;

Bitcoin’s global trading efficiency is three times that of NVIDIA;

Bitcoin is a demand valuation that depends solely on the comparison of funds between long and short positions;

Study the comparison of bullish and bearish forces and observe the capital inflows of spot ETFs and changes in one-year hoarding data.

The first target of Bitcoin is 3.3 trillion yuan (corresponding to a unit price of 160000 US dollars per Bitcoin)

The first target position means that Bitcoin serves as the second largest store value, with gold as the leader. It is based on the position that rises from the lowest to the highest in a four-year cycle. There is a tenfold increase pattern here, from the lowest point of 16,000US before halving to a maximum of 10 times after halving. Each bitcoin costs 160,000, multiplied by 21 million, which is 3.3 trillion. After having an ETF, the 10-fold cycle should be broken; it will only be higher.

Mr. Zhu analyzed NVIDIA using stock analysis methods, industry track analysis, and the company’s own PS analysis. He is the major shareholder and chairman of Hong Kong Yuxing Technology’s listed company and has a professional stock analysis perspective.

He compared the demand valuation and analog gold storage value analysis methods used to analyze digital currency, which is directly related to his recent involvement and investment in digital currencies.

3. Is buying them an investment behavior?

Buying them is an investment behavior, and risk analysis and control are the most critical aspects of investing.

I agree with Mr. Zhu’s analysis and would like to add the following three points from a risk perspective:

1. Technology can be replaced. NVIDIA is a company whose core values are technology and related products. From the perspective of technological development history, the risk of technology being replaced is possible. The replacement or extinction of Motorola and Nokia phones was due to the launch of iOS and Android systems rather than factors such as performance improvements and appearance materials. There are countless examples of such cases of the complete replacement of traditional film manufacturer Fuji film by digital cameras.

2. Bitcoin has monetary attributes. Major currencies such as the US dollar and Euro will depreciate due to QE’s rescue of the domestic economy. The Bitcoin algorithm restricts its own issuance and will definitely appreciate inflation. The risk for Bitcoin is the risk of technical pullbacks.

3. The investment time shows the risk. Investing in NVIDIA and Bitcoin has a specific technical analysis component in the short term, but the difference is limited. From a long-term perspective, such as 3 or 5 years, Bitcoin must have won. The longer the time, the greater the risk for NVIDIA. If there are significant events such as force majeure or new technology substitution, its stock price can shrink to one-tenth of its current stock price.

Mr. Zhu’s current hands-on practice of the digital currency DW20 is unique and has great opportunities.

Mr. Zhu said, “The idea behind my design of the DW20’s Bitcoin standard comes from Hal Finney’s vision, which implies that the Bitcoin standard will become the main payment system. This idea has already taken shape in 2023. It is to give Bitcoin the ruler it lacks, measure global economic development with Bitcoin, and replace stablecoins with DW20 for daily transactions. Bitcoin and DW20 together form an inflation-free Bitcoin standard system. If realized, price increases, as Hal Finney predicts, may make Bitcoin popular.”

The issuance principle of DW20 is similar to Bitcoin, which belongs to the consensus currency and also requires a growth process from air to asset coin (Stablecoin). The difference is that DW20 adopts an unconditional airdrop method, and anyone who registers can receive a free airdrop. The process from air to assets is a process of windfall profits. Let’s use DW20 to catch the train of Bitcoin and help Bitcoin simultaneously.

The current DW20 (Dai Wei 20) is like early Bitcoin. Only early participation can easily make profits. The earlier you register, the more likely you will achieve class crossing. The era of Bitcoin’s windfall has been missed, so don’t miss out on DW20. Allow yourself to get rich and receive airdrops at zero cost!

APP download link:

Mr Zhu spoke firmly. You will receive a big bonus package that will rise, possibly to tens of thousands of dollars.

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