Ethereum bull Mark Cuban got off into a Twitter spat with Bitcoin Maximalist Preston Pysh
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If Global Energy Crisis gets worse, Bitcoin Mining could be in trouble
Kwon and Terraform Labs are contesting the subpoenas issued by the SEC following a dialogue concerning Mirror Protocol, a decentralized finance protocol built on Terra, which allows users to trade “synthetic” assets that track the price movements of real assets, such as shares of Netflix or Tesla. The SEC has increasingly stepped up its pressure on crypto firms potentially offering unregistered securities. CoinDesk first reported the lawsuiit, which seeks to quash the subpoenas.
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Could be the Greatest trade ever
A friend bought heavily into Ripple at the peak in 2017. He initially avoided Bitcoin because “it’s expensive”, and later because alt coins were giving much higher return. Market crashed few days after his purchase; he could not take the loss and exited. He decided not to look at crypto again, and justifies himself by showing how Ripple is still below his purchase price.
Bitcoin has suffered multiple crashes, some going as deep as 80-90%, but it always comes back. It comes back because some people find it a very useful store of value. Many of the “cheap” altcoins may not come back, just as Ripple. Those drooling over gains in some altcoins must keep that in mind. They should not bet an amount they cannot afford to lose, and they should be confident in their ability to timely exit before the bull run ends.
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Bitcoin has risen because it’s fundamentals are strong. If for some reason number stops going up, hash rate will drop and there will be chaos. Not a risk yet, definitely after 2-3 halvings.
Ripple is a special example, it’s a security posing as CryptoCurrency. Ripple labs leveraged the crypto hype like nobody, no wonder SEC has locked horns with them.
Bitcoin forks are on the decline and will eventually become worth less. Either Litecoin or Bitcoin Cash might still stay relevant.
Doge will dump super hard if we see a Crypto Winter. Shiba Inu might crash less because it has no inflation unlike Doge. (Not an endorsement.(
Starting with Ethereum, multiple smart Contract blockchains have indeed hit new ATH. Bitcoin dominance is declining and will continue to do so. To name a few: Cosmos, Algorand, Tezos, Fantom, Cardano (all were present in 2017)
Disc: Holding a few million sats
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That is the main problem surrounding cryptos and what is really giving it a bad name. Basically for a crypto currency to be worth anything, it needs to have a technological innovation underneath. Bitcoin, Ether, Cardano, Solana - all of them are technology based innovations - an use case of distributed ledger. Doge, Shiba, Tata (as cited in link above), have no foundations. Investment in cryptos is basically investing in a piece of technology - if you don’t understand the tech, you are much better off staying away from it. Even if you do understand the tech, what you are betting on is two things - one - the tech is good, two - it will become widely used.
Unfortunately understanding the tech is beyond most normal investors, because it requires specialized knowledge. And secondly, even if you understand the tech, whether it will ever become a widely used one is a complete guess. Its like startup or PE investing.
The entire field, the good ones, are brilliant pieces of technological innovations - all hoping to actually become a platform for various use cases. But its a nascent and struggling industry, and the ease with which you can create a shit coin, float it, hype it, run it and get way with loot is really really not doing the genuine ones one whit of a service.
To summarize, if you are thinking of investing in cryptos - you need to answer three questions.
Is it based on a worthwhile technological innovation? - Is there a white-paper which spells it out.
Do you understand that innovation? - Do you understand that paper?
And lastly, Do you think this technical innovation would be useful in future?
If yes to all three, you may take a shot at it. If not, well, its your money. I would recommend an avoid, but its your call.
Disclosure - I understand the tech. But I am still not invested.
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Mana Decentralised has huge gaming software solutions as well as online games.
The above 3 cryptos are lottery tickets and one would have better luck at a Casino, than investing in them. Doge nevertheless is superior to Bitcoin, technology and functionality wise, not necessarily in terms of security and tokenomics. Shiba and Tata are just smart contract junks.
Exactly, see plebs and normies like me don’t get a chance to invest in startups. Crypto democratizes venture capital investing. But its is also rife with risks without much form of legal recourse or rugpull protection. For every 10 normie who makes it big, 50 pleb might have got rekt. Its the cold hard truth about how free markets operate, scams happen even in stock markets. Crypto literacy and risk management are the answers (with some regulation).
Good checklist.
Just in case - for folks interested - a good overview of the technological underpinnings can be found in this NIST document -
Do note, It is not light reading material.
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The document seems balanced and doesn’t oversells any particular technology. But one aspect lost in the race for better technologies is the economics. The crypto token is not equity in the said business. Except the case where token is trying to be money, like bitcoin, it is not clear why one should hoard the said crypto tokens. Another open question left is what real world problem, apart from creating a store of value, is solved using blockchain that cannot be solved just using a database?
Immutability (you have to look this term up - it has ramifications and nuances not easily explained in a forum post) - Vehicle registrations, land registrations, heirloom jewelry registrations, financial transactions (well, that one is pretty obvious), criminal records - use cases aplenty really.
You could edit the db with a simple sql query - all you need is access. You just cannot edit the block chain history. Not unless some pretty close-to-impossible requirements are met.
edit - couple more scenarios - lookup Tanla platforms business. They have one of the largest blockchain based use cases working as a viable business. Another possibility - all of our UPI transactions.
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Another point (again, this is all the opinion of just a guy deeply interested in tech and technical evolution, so pinches of salt advisable), is that looking at economics when it comes to the crypto world is like focusing on the side effect instead of the cause. The economics of the cryptocurrencies are exactly that - side effects. The value is in the tech. Now since we don’t really have any frameworks really to do a fundamental analysis of the technology, combined with the fact that that the most common use-case/effect is economics/money - we end up in a situation where the value of the technology is being solely driven by subjective and opinionated demand/supply equations. Since of this subjectivity is not necessarily driven by an understanding of the technology and its value, same as all trades in stock markets are not driven by fundamentals, we end up in this highly volatile situation around crypto currencies in general.
And the addition of shit coins, gaming tokens, specific use tokens (binance coin) for example, is not really helping (or rather, increasing the complexity greatly), so that forming a sound base from which an analytical framework for investments in these assets can be derived is non trivial.
Add to that the fact that, no one, really is in control. Human thinking and behavior is not naturally suited or compatible to the decentralized model of behavior and actions. Having someone in charge is a lot easier to handle and think about, or blame, when necessary.
And this is why this entire asset class, is a volatile, risky business. If you have the stomach and the knowledge base, and the instinct to navigate these waters, you may go forth. A lot like the first sailors trying to navigate the atlantic or pacific. It is definitely possible. Whether it is possible for you, is a decision only you can take.
But, please do note that a lot of those early sailors drowned in those early voyages. Even when they thought that they understood the oceans. And even if they actually did know the oceans.
A few however, went on to colonize the united states, and australia and so forth.
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Speculative Demand, just like Bitcoin. 21M hard cap means nothing, if there’s no demand.
Utility tokens have actual demand for those who want to interact with the underlying ecosystem. Depending on the value locked or ecnomic activity in the said ecosystem, other people are willing to buy them to speculate on their future demand.
DAOs fix this.
The whole theme is centered around self-sovereignty.
ENJ coin
- CoinQuora believes in the short term that ENJ is approaching a crossroads. Should the bulls take over, it could surpass even a $5.34 resistance level and continue climbing. The bearish perspective sees it dropping to around $2.60. With that said, the site is generally bullish on the crypto, predicting it could hit $15 in 2022 and $30 by 2023.
With all the talk about regulating the crypto space instead of banning it (which is a positive development), my question is how do regulate something which in itself is based on anonymity of transactions? doesnt that defeat a part of the purpose.
Of course you could get tax revenue on transactions, but is there any more scope of ‘regulation’?
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Solving some need is what gives technology economic value. I have personally experienced the need of store of value, solved by bitcoin, and private transactions, solved by monero. But while monero is a better tech than bitcoin, atleast as far as private transactions are concerned, there is no case for hoarding monero token. The same problem can arise for other utility token. It may make economic sense to acquire equity in team implementing some utility token, but not the token itself.
I feel the same. A lot of newbie will burn their hands when the bull run is over, and may never invest again in any “crypto”. But I feel that a open, unregulated market is the best place for giving birth to new ideas. Maybe the ideas, we consider silly now, prove to be useful in future. eventually market forces will kill the wasteful ideas while preserving real innovations.
That depends upon how decentralised the underlying blockchain is. If most of the nodes are being run by the development team, they can alter the blockchain by forking and voting for the newly forked chain as the longest correct chain.
Bitcoin is the most decentralised, and hence the most immutable, blockchain. Does it not make sense to implement those utilities on top of Bitcoin, instead of starting a new coin or token for every new use case?
Except for the case where blockchain token is money, other use case like vehicle/land/jewellery registrations fail to eliminate the need of trusted third parties. You need a legal recourse in case someone violates the registration on chain. That means you need government or some authority to punish those in violation. But if a trusted third party is needed, we can have a simple history preserving database whose access is only available to the trusted authority - which is exactly the case today.
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You cannot regulate transactions happening on chain. I believe they are trying to regulate crypto exchanges. Most of the “crypto” demand is speculative demand, with people buying and selling coins on exchange as assets. From what I have read so far, they intend to tax the buying/selling on regulated exchanges. They are also planning to ban the use of coins as anything other than assets (because then they can’t tax anything), but it is not clear how they can implement such a ban.
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This is correct. You just cannot regulate on chain transactions. What you can do is watch the gates - like the exchanges. It is the exchange the ties your bitcoin wallet to you through KYCs etc.
And neither can you ban the transactions.
This is one of the elements that provide a chain based system its value. Which is why Bitcoin is head and shoulders above all the rest.
True that, but now a lot of cases contest the validity of the registration, or the will and so forth. Most chain use cases, non monetary, will essentially be a mix of the chain and an authority on top which relies on the chain. Yes, its is doable with other systems of record, but it is also doable with a chain based system of record, and the specifics will be determined by the value add the chain brings to the use case.
Apart from bitcoin, one token I am watching carefully is Kadena. I like POW chains, but Bitcoin is the only major one, but its has its own problems with scalability and speed. Kadena, apparently, is a POW system which solves the transaction speed problem by using something called braided chains. Looks interesting to me.
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