Top of the Great Era

Chapter 2947 The Secret of the Internet

Zhou Buqi had just returned from Europe, where he had dealt with the EU for a long time. The third point Zheng Xiaoli made just happened to fit in with a layer of concerns he had learned about from the EU.

It is the dumping of high-tech from the Internet.

Combined with Zheng Xiaoli's statement, this theory can be further improved.

Zhou Buqi smiled and said, "The EU is busy promoting a digital single economy, and someone mentioned to me that they are worried about market dumping in digitalization, but I retorted."

“Digital dumping?”

Zheng Xiaoli was slightly stunned. This is really a new word.

Zhou Buqi said: "The general logic of business is the same. The Internet is nothing more than a coat of technology. For example, if you produce socks, socks are originally a small business of a small workshop. How can you expand the sock business? In fact, it is simple, that is, 'dumping + monopoly'. First, sell in large quantities at a price lower than the cost price, and then kill all the sock factories in the market. After monopolizing the market, seek appropriate price increases to make small profits but quick turnover, and a giant socks manufacturing company will be established."

Zheng Xiaoli smiled and said, “That’s why we need to fight against dumping, because dumping is often linked to monopoly.”

Zhou Buqi said, "There is also Qualcomm. In the past few years, Qualcomm has almost destroyed the European mobile phone chip industry. In addition to relying on intellectual property restrictions, there is also this kind of dumping. Qualcomm's product quality is already good. If they sell their products at a price below cost, then those European competitors will really not be able to get a single order. They will all be squeezed out within a year or two."

Zheng Xiaoli knew that Boss Zhou was fighting with Qualcomm recently because Qualcomm's products were too expensive. "Once the European mobile phone chip industry is destroyed, Qualcomm will have completed a unified monopoly in the market. Now the price of Qualcomm's chips is ridiculously expensive."

"Yes." Zhou Buqi nodded, "However, this business logic is not limited to traditional business, nor is it limited to the transaction of physical goods. It also includes some digital products and virtual goods, such as the Internet."

Zheng Xiaoli suddenly realized something and was a little dazed. "Are you talking about my Yahoo strategy?"

This is the third experience she summed up!

Yahoo has created 11 apps with more than 1000 million daily active users in a short period of time, which is a huge business achievement. This is not just about leading Yahoo to transform into the mobile Internet, but is developing into the largest product cluster in the mobile Internet.

  The reason why this can be achieved, in addition to relying on Yahoo's strong brand, Ziweixing International's powerful channels and huge promotion fees, the most important point is that these Yahoo products have no advertisements!

What does no ads mean?

Just not making money!

Other people’s apps are all considering profitability, which means “selling products at prices higher than cost price” in order to make money.

  These apps under Yahoo are different. They don’t consider making money at all. They are operating at a loss and “promoting products at prices below cost”. They are doing business at a loss!

What is the purpose of doing business at a loss?

It’s actually dumping!

It is to destroy all competitors in the market through a loss-making business model without advertising. When all competitors are dead, only Yahoo's full range of products will remain in the consulting category, forming a monopoly advantage in the market... At this time, you can add advertising.

  You can make money comfortably!

Zhou Buqi agreed: "Yes, the third strategy you just mentioned is actually digital dumping."

Zheng Xiaoli was very worried, "Will there be restrictions?"

Zhou Buqi laughed and said, "No, the Internet is high-tech. How can politicians and judges who don't even know how to use smartphones understand it? They didn't understand it in the past ten years, and they won't understand it in the next ten years either."

Zheng Xiaoli breathed a sigh of relief and smiled, "The Internet is a digital intangible asset. The choice between apps and users is actually a digital virtual transaction. Apps provide services, and users pay not money, but time to watch ads. This is a transaction between service and time." Zhou Buqi said, "Yes, when I was in the European Union, several commissioners raised such questions, but I pushed them back. This kind of virtual transaction is difficult to define as a transaction in the legal sense. If it is not even a transaction, it cannot be characterized as dumping. But in fact, we all understand that from a logical and principle point of view, it is actually the same thing."

Zheng Xiaoli said, "Hmm," "It's really the same thing."

"So the so-called Internet business innovation is now very clear." Zhou Buqi now understands everything. "In fact, it is no different from the business model of traditional industries. Some people joke that there are many ways to make a lot of money, which are clearly written in the Criminal Law. What is the most profitable way to do business?"

Zheng Xiaoli took a deep breath.

This argument was so radical that she didn't know how to respond to it.

Zhou Buqi said: "The innovative competitive thinking of the Internet is nothing more than a coat of Internet high technology! But now countries all over the world do not have a clear understanding of the Internet and lack an accurate understanding of the characterization of Internet virtual business. This is actually a huge legal loophole. Just like this year's hot blockchain currency Bitcoin. In the United States, if you do any business and make money, you have to pay personal income tax, even those criminal groups involved in drugs and pornography are no exception. Hehe, but there is an exception."

"High-tech exception!"

“Yes, high-tech is an exception. The money earned from Bitcoin trading is not taxable! Doesn’t this give us some inspiration?”

"It's so shocking!"

Zheng Xiaoli has now truly witnessed the power of the Internet.

In the United States, even those desperate criminals and criminal groups involved in drugs, pornography, and even murder who are holding guns against the United States cannot escape paying taxes... There is one direction that can legally and openly avoid paying taxes, and that is Bitcoin.

This is so representative!

  This is probably the main reason why the Internet industry has been able to develop rapidly and vigorously in the past decade. Looking at the current situation, the mobile Internet industry will only develop further on a larger scale and become the main reason for the Internet to dominate the world, right?

By disguising itself as the Internet, illegal business practices can be carried out legally.

Zhou Buqi currently holds 122 million bitcoins, making him the world's second largest bitcoin holder, so he has always been paying attention to bitcoin. "Of course, when bitcoin becomes more and more popular, and even becomes a currency for daily transactions, the United States and even many European countries will incorporate bitcoin into the normal financial system, and people will need to pay taxes after making money from speculating in bitcoin. However, they haven't figured it out yet. When they don't understand, they can legally not pay taxes!"

Zheng Xiaoli has fallen into deep thought, "This is the Internet."

“Yes, that’s the secret of the Internet.”

If Zhou Buqi only did Internet business, he would not be able to see it clearly, but he is not only an Internet entrepreneur, he also has many businesses in the real economy, which makes him feel the "advantages of the Internet".

Zheng Xiaoli said: "Now I understand the meaning of the so-called Internet age."

Zhou Buqi smiled and said, "So, how to innovate business on the Internet? The third point of Yahoo's successful experience that you summarized is actually dumping. What other good innovation models are there? In the Criminal Law, Company Law, Commercial Law, Antitrust Law, Insurance Law, etc. of various countries, they are actually clearly written. See which types of business behaviors are clearly prohibited, clearly illegal and in violation of regulations, put on the cloak of the Internet, and do it in a way that no one else can understand! This is innovation!"