Crypto Competing On Technology Not On Monetary Policy.....YET!

in LeoFinance3 days ago

Hey Jessinvestors

As the Bitcoin bull market continues to rage on, the amount of liquidity flowing into the crypto market begin to slosh around. Projects are making all sorts of weird and wonderful claims in a bit to get a hold of your Bitcoin, and I see so many people falling for this shill fest.

I am not here to bad mouth coins because I don't want to give them more publicity, and the market will eventually figure out what they sell is fairy dust, and many will get hurt, but that's part of the game. There are many snake oil salesmen and women in crypto since there are few regulations, and it's a wild west.

I personally feel this is the way it should stay, and regulation should come from communities and taking personal responsibility by using your brain and not rely on government and regulative bodies to do all your thinking for you.

If you make poor choices, you should get punished, and if you make good choices, you should get rewards; that's how we allocate capital and resources effectively. This way of living seems foreign because we come from an over-regulated world where we look to central bodies to protect us from every paper cut we get and keep us safe. Our sense of danger has atrophied because we don't use it, we cannot detect it, and that's why we fall for every sales pitch.

monetary-policy.png

With respect to tech

If you haven't dived deep into the blockchain market, you'll probably see Bitcoin and alt coins as the same thing. That they are technology platforms that compete on tech online. It's easy to make that conclusion, and one altcoin bang on about as their unique selling point. We've heard it all before:

  • We're faster than Bitcoin
  • We're cheaper than Bitcoin
  • We've got smart contracts
  • We use less energy
  • We can scale
  • We have dApps

All these are cool and great for the ecosystem as a whole, but it is not enough for me to part with the most pristine digital asset in the market. I am not holding Bitcoin because I want access to dapps or scalability; I want it to protect and appreciate my wealth.

I realise that is not everyone's goal, so to each their own, but for me, alts isn't where I want to park my faith and purchasing power long term.

If you believe in a said coin, why do you hold Bitcoin? Why do you sell said coin for Bitcoin or fiat? It doesn't make a lot of sense to me. If this is the "future", wouldn't you be chomping at the bits to hold every single coin you can?

Exactly my point; alt coiners don't even believe in their own coins.

Alts also like to speak about the returns you can get, but how much liquidity do they have for you actually to realise your returns? How much of those returns are just inflation and vapour that, as soon as it's dumped on the market, crashes the price?

I get that alts are smaller, more nimble and can move fast and try new things; that's why their values are so volatile and why you're taking a considerable risk investing in them, so rewards should be outsized should you pick the right one but its still far too much risk for me.

Bitcoin is a fusion of tech and economics

As alts innovation slows down, which is the case with every market once it reaches maturity, I see it giving time for Bitcoin to catch up. Once technological parity is achieved among all these open-source projects and all the best ideas in terms of tech are implemented, the game will then be played on a monetary policy level.

The coin with the hardest and defensive monetary policy will win, which I think is Bitcoin. As alts continue to fiddle with their tokenomics, they actually weaken the investor confidence and break the social contract they have with current investors.

As long as BTC continues on with never changing its monetary policy of consistency, I don't think any coin can rival it.

Have your say

What do you good people of HIVE think?

So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."

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I would not say that all Alt coins are shit, most of them are. If someone have a vision and a good use case that they can implement and we see the value in the future that's something i would like to jump on.
As you said this needs to be a decision based on knowledge and research not just because everyone else is doing this so do i.

That’s the thing just because they are not shit isn’t a guarantee that they will be around! Beta max wasn’t shit but VHS won, HD DVD wasn’t shit but blu-Ray won!

There’s so much focus on just the tech the tech the tech but there’s more to it than just tech! Your chain could do a 100k transactions per second doesn’t mean people will want to use it

I just think when it comes to trying to be money, monetary policy and security is weighted and higher than tech

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You have valid points all the way down but I think you’re overlooking the “smart” aspect alt coins bring to the table. Btc has become a store of value while alts are rolling out to manage transactions intended to serve specific functions.

I think the one coin to rule them all theory is also valid but I think it’ll more likely apply to cross chain tokens.

There’s too much development, innovation, and experimentation in this space at present for one to rise above and remain, I think. It’s too early.

I do see them as complementary for sure, but I do think that if BTC starts to absorb a lot of the features like smart contracts, faster transactions like with lightning, counterparty and RGH etc and its added to their current wallet providers then its going to start to absorb a lot of alts.

Why would I want all these native wallets and all that? Look at BSC its boomed because it ran directly on ETH's infrastructure. Now imagine if lets say we move stable coins to Bitcoin, have DEX's on Bitcoin, which I think will all happen.

I think Bitcoin being able to absorb features from alts is a good thing, it forces them to constantly innovate and brings us new opportunities.

Just like BTC will absorb their features long term, they absorb BTC's liquidity short term.

Do I think there will be 1 coin and 1 chain? No i think BTC becomes the money and coins split off into things like

  • NFT
  • Stable coin
  • Equity coin/Tokensied shares
  • Utility token
  • Debt coins

and more. But I just don't believe a lot of these projects even need their own blockchain or coin, some of that could be done without having a native asset.

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Man, I haven’t put as much thought into this as you have so I’m not sure how to disagree with you other than to say that I think you’ve laid out a good example of how the legacy system might over take the crypto world, but a big part of this space is specifically aimed at disrupting that as well.

I don’t think this “Wild West” will be tamed in the same manner because the manner in which the resources can be obtained, managed, and protected are completely new.

I think BTC will be king until the alts really come into their own then we’ll see it retired to gold status with each surviving coin holding solid shares of their respective markets and tokens managing what those coins are doing.

BTC is definitely the foundation of that but only as a matter of being first out of the gate.

I’d need to roll this over a bit before I can go on as I feel I’ve kind of gotten a little off point or may be sliding that way.

I wouldn't want the wild west to be tamed, I would rather we as community members help with education, teach people to recognise bullshit, to think critically, instead of removing the danger, allow people to take responsibility for themselves, well that's just how I feel about it.

I think if you like regulation and safety the fiat system is there for you.

BTC is being institutionalized and that will bring with it a new phase and perhaps alts provide a bit of an escape from that who knows?

What I do know is that if I have Bitcoin, a lot of people all over the world are working to keep it secure and I respect that. Im currently 54% BTC in my portfolio so I'm no maxi

It's cool man, I think discussions are good, it brings new ideas, that's all this blog is for me, learning out loud and being called a moron, its fun, sometimes I do take it too hard but I'm a millennial, can't help being a snowflake sometimes.

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Lol. The institutionalization of BTC is one of the reasons I’m so reluctant to just flat out agree with you. Your logic makes sense but that one point I think is key to this space in particular.

I think historically people would rather live in tribes but institutions have made that impossible in the physical world. This realm doesn’t have to bend to those forces in the same way if at all so I think the human spirit has a new place to revitalize and set a new paths for the future and communities will be the driving force going forward. Thus having multiple currencies, at least for the beginning, seems likely to me.

If a community come together and decide something is their currency then so be it and it has value nothing wrong with that. It’s all a thought abstraction really

I am more focused on these projects claiming to be better Bitcoin when all they are is ways to get your Bitcoin into their pockets and leave you with vaporwear

I also think that BTC has picked its niche and so had ETH and the rest are trying to find theirs! Many won’t find a niche, I do think this HIVE thing has a niche that could be something! There’s a lot of social media sites now giving away coins everyone things there’s is not the shit coin of that space

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Oddly, the social media aspect is both HIVE's boon and bane. I was drawn in by the concept of social media that pays for participation but it also fills our community with talentless hacks (like me 😁) thus having the effect of looking like a bunch of idiots in a circle jerk. I think it's the defi and tokenomics That are keeping us afloat and relevant until our community grows to be able to provide the real value of the social media aspect and solidify us as legit players in the space. No one in crypto (that I know of) has a community like ours. 😊

The point about shilling you get our btc is also valid, though. I forgot to address it earlier but I agree with you.

54% ... there was an informal survey about %s by RealVision on twitter, i thought it would be like 80% btc, but a lot of people were saying like 50% eth, or even more ... my son is buying more ETH as well... and actually i have too recently

I don’t think people are leaving their BTC positions for Alts I think they jusy Burning more fiat to get them! Always throw away the bad money first lol

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Oh most certainly I don't see people leaving btc for alts. I just think alts will have more weight than I initially thought you were acknowledging but I'm coming to believe we see eye to eye but from different perspectives.

Old money only knows Bitcoin. Many haven't even heard of Eth let alone any of the rest. Don't think that's going to change any time soon.

Old money goes slow, they want stable growth, all they need to do is beat inflation and they are happy so they're not going to look at things that have too much risk or where they could be stuck holding the bag.

I've seen many alt shills who buy major bags and then find out they can't get rid of the stuff at a profitable margin

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I treat Bitcoin as a store of wealth but I am perfectly fine taking out my initial invests plus some profits when it has 10x or even 20x. Why? I do believe BTC will do well but I prefer to have a free trade and it will also mean I have some spare money to invest in some of the alt-coins. Of course the alt-coins won't be a marriage. It will be for a trade.

There are just too many problems with BTC for it to be considered the actual currency used globally because it will stifle the economy and promote people into saving. Also with some of the banks giving predictions of 400k BTC by the end of the year, I fully expect it to be a good store of wealth.

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Nothing wrong with taking your chips off the table and playing with the houses money/earnings. I have yet to do that but perhaps one day I will, probably with altcoins though, not BTC, not keen to risk my position, that's my 10-year stack by 2025 I want to have more BTC not less

I don't believe that people are that psychotic that they'll save against their own self-interest, If you have bTC and want something else, like a home, holiday, car, whatever it is you're going to spend. I think we're just brainwashed into this we MUST consume, BTC is saying consume when you've thought about if it's worth it, not consume at all costs.

I don't see how that stifles the economy, all it does is reprice goods and services, the demand would be the same. You're not going to stop eating, traveling and living life for BTC's sake, that's just silly

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What I mean was there is some arguments that everything would be priced in BTC. So if everything is priced in BTC and there is a limited supply of BTC. So the supply of new BTC will continue to drop while the population will probably increase/stay the same. So goods will continue to be repriced down so those who can save will see a big difference compared to those who don't. So would someone really want to go on a holiday when you can wait 4 years and spend half the cost?

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Yes you would be correct but since theirs a finite amount it means velocity goes up which means it takes less BTC to generate GDP. So 1 BTC can be traded hands 10 times a year instead of one! It’s not about the unit of account but how many times it moves and generates more productivity

I just feel eveyeones will eventually get to a point where they have enough BTC or the annual return is so small like sub 10% that you like Fuckit I need a holiday or whatever

If everything is priced in BTC it’s not like you can’t work and earn more BTC! I know it’s a weird concept because we so locked into fiat and it’s the opposite it took me a while to think about it too

But I think that human time preference Trumps any store of value! If you want a Tesla today and you can afford it why wait? We all going to die someday

And what good is money never spent? This savings glut I think is a fallacy

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Not entirely agreeing to this tho...

On the perspective of being an Alt kinda guy, it is unlikely for you to judge their selling points. I mean that's what trading is all about, you find a peak grab your profits and claim a larger position at a dip, this is the format it takes deep in the secondary markets, but else that, this are just a bunch of people in need of physical money and that's totally understandable...

Altcoins are cool, they add value to the entire network, and I know you didn't particularly say they don't. Bitcoin on the other hand is supreme, a large dump in BTC affects the entire market so every single project bleeds at its own volatility.

I love BTC and enjoy seeing it more up, because if BTC was to go down 50% in few minutes, a lot of more projects would loose their entire value to the dollar.

The system is still flawed technically, centralized bodies jumping in and adding to the energy, and honestly, looking at where their targets are, which is BTC, it's obvious their plans for the entire crypto space.

But in a way, I believe we can overcome, and I believe the most reason why so many of us dig Altcoins is because they are affordable and promises most returns in the long run for everyone.

I don't see a reason why cryptocurrencies holders are always picking up on each other and trynna make everything a competition, it really sucks and am looking forward to see the cryptocurrency to replace Fiat as a medium of daily trade, it definitely won't be bitcoin as that is far from reach, but fingers crossed as always...

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That's the beauty of it, you never have to agree, the market will eventually price everything correctly. A lot of alts are there today gone tomorrow in the last 8 years how many times has the top 10 changed under BTC? Quite a few I would imagine.

I agree alts have their place, its place for experimentation and being bold, like VC investing you invest in 10 companies, 2 boom the rest die, that's how it works.

I think we all just feel we want validation and to protect our investment so we bash other projects and try to get people to come over to our side because we have an economic incentive to do so, its the same with stocks, same with MMT'rs claiming fiat is the ultimate. It's not only a crypto thing its a human thing

While it can be toxic and annoying, it also keeps projects and communities on their toes calling out their bullshit. Not saying BTC is the holy grail and their community is the best, I'm just saying that if layer 2 starts to absorb a lot of alt features, and atomic swaps and interoperability becomes easier, then monetary policy is what will dictate the value and use of a coin.

I am not here to convince anyone, make your bets as you see fit and I make mine and the market decides which was the right bet.

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I think most times we over shill projects for the merits of it, matter of fact part of those ten 10 cryptos you're talking about are still classified amongst Altcoins...

Yes definitely, we have shitty projects out there, but the using then "Alt" term just generalizes the whole thing, and what's most crucial to look at is, if Alts are to be erased from the picture, then the entire Crypto Space wouldn't be valued at all...

It's a good thing to have more projects unfold and propose new things, definitely new communities have to try and out shine the already existing ones, most may fail at it, but just stepping up shows that things are being done and there's more interest to better the network.

We all want the "utility of cryptocurrency" at a world adoption, regardless what coin is most recommended, people will always have different taste.

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Yeah, it's a naming issue and marketing issue, but altcoins do tend to rely on being conflicted as money to gather investment.

I think we do need better naming/categories for it like

  • Equity token
  • Debt token
  • Utility token

So people can understand okay these are more apples with apples and these are more oranges with oranges. Instead of lumping them all in a big pile.

Its like an ETF is not a stock, and a stock is not a currency, they all have markets and features and benefits.

I'm here man I believe in this shit, fiat isn't getting me anywhere. I want this to succeed. Bitcoin isn't going to change regardless of my praise or hate for it, same with alts.

I'm just here to learn and be called out on my bullshit too lol its so easy to get caught up in these things, I am trying to emotionally distance myself from it lol

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thank you for your interesting article, have a nice day

It'a s pleasure, the more you learn you know? The rabbit hole goes deep

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Very solid points that you make in this post.

Hive and a lot of other cryptocurrencies are technically better than Bitcoin.

But most are less scarce and established as the Big Orange Coin. And this is why it is worth that much.

It has an amazing story/narrative; first mover advantage, scale in terms of popularity and even the most places where you can actually buy real life items (think Tesla, paypal...).

It is also the ultimate deflation asset as it has a fixed supply.

So we are different and it is good that way :D

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and it takes a shit load of energy and resources now to acquire one so it keeps getting harder and people value that. These other alts especially ones that don't use proof of work are often easier to acquire like hive so people dump them. Not to say that's a bad thing, every coin has its niche it wants to go after but it's not going to be seen as something you hold long term.

Sales will come with time, I've actually also seen houses being sold for Bitcoin too, I am sure people will sell their businesses or stock for BTC. Micheal Saylor sold debt that can be converted to equity and bought BTC

I think there's a lot of opportunities in alts but the more they tweak distribution and supply the more they erode the social contract of the coin/community.

That's why I think BTC wins, no ones going to get them to change the way its issued. It's got ALOT of considerations baked into it and people unfairly rip on it, thinking tech is the only thing that matters.

I don't NEED faster cheaper transactions, I NEED some place to keep my purchasing power from being obliterated by governments

Not much to say except Amen to this 🙏:

I don't NEED faster cheaper transactions, I NEED some place to keep my purchasing power from being obliterated by governments

I think if the governments don't consolidate and get their stuff together soon they are going to end up spreading themselves too thin chasing all of the crypto projects they don't agree with. They need to stop going after projects like XRP and get together with a clear and fair set of rules.

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Honestly I don’t think they will at least our government won’t we will ride that sucker down until it implodes like many other developing nations who drink from the poisoned Breton wood! They took the suckers bet, we pay for it

I say private money allows enough people to escape and force good monetary behaviour or be exposed by hypeeinflating against Bitcoin

I don’t see fiat going away I just see it being exposed by BTC and I think competition is good! Let’s hope they stop trying to fight it with legal shit and fight it in the market by being better with managing a counties finances

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thank you very much for sharing,have a great day and good mood

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as Saylor says, thermodynamically sound money. also as he says, once something is the dominant "protocol" it's very hard to change when engrained and ubiquitous.

if our government actually cared about people, everyone would have a smart card with all useful info and free access to many basic things, and most importantly money or other credits could be added instantly. not all this non-sense about mailing out checks that maybe take 6 weeks to deliver. government has warped into using tech to limit and marginalize/surveil instead of empower.

Big Mike is a nutter or a genius I can’t figure out which his million dollar cost averaging every month like a monster

I think the financial system is purposefully set up that way there’s too many people with a financial incentive to keep it this way! That’s why a few geeks on the internet could make a money that we all vibe with because the money we are using only benefits a handful of people

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