Not all that glitters is gold. What goes up, must go down. And the BTC token has no utility (1/11)
The fiat value of prominent tokens like BTC nosedived over the past week, putting a serious crimp in BTC’s self-proclaimed status as ‘digital gold.’ Digital fool’s gold might be more appropriate. Or ‘digital pet rock,’ given its similar functionality (2/11)
BTC had been on an upward tear, allegedly thanks to Donald Trump’s ‘crypto’ embrace. The real causes remain as opaque as always *cough* market manipulation *cough* but when they run out of greater fools to bid it up higher, ‘number go up’ becomes ‘number go down’ (3/11)
The Tether stablecoin printer will probably spin up soon to provide an artificial floor under this deflating balloon and BTC whales will use the plunge to grow their existing stashes, further concentrating BTC ownership at the top, then the cycle will repeat (4/11)
But retail ‘investors’ won’t buy this dip. As the Coinbase exchange’s Q2 report showed, retail interest in tokens like BTC is dying. The predatory cycle has repeated often enough that FOMO (fear of missing out) has been replaced by FOBB (fear of being burned) (5/11)
As BTC’s ‘digital gold’ mantra is exposed as a hoax—actual gold hasn’t mirrored BTC’s plunge—the proposal to use it as a strategic reserve asset by the U.S. government (or pension funds adding BTC to their portfolios) is revealed to be A Very Bad Idea™ (6/11)
My critics might argue that the token associated with the BSV Blockchain technology that I support has also fallen in fiat value, which is technically correct. They might even have a point if fiat value was BSV’s only purpose. But it’s not (7/11)
Long ago, I got into blockchain for the technology. Over time, the tech-focused cohort was usurped by those seeking quick riches. It’s time to reclaim the purpose that Satoshi detailed in his Bitcoin white paper (8/11)
BTC’s falling price comes as block reward miners are already struggling due to the recent halving of the block reward. Worse, BTC’s mining difficulty just hit a new all-time high, driving the costs of mining even higher (9/11)
Expect BTC miners to continue their ‘pivot to AI’ as grid operators ask why they’re allocating so much of their supply to fuel a speculative bubble. If you can’t demonstrate a purpose beyond enriching a handful of bagholders, why should taxpayers underwrite this? (10/11)
Bottom line: if the BTC blockchain has no other purpose beyond ‘number go up,’ it deserves to fade into obscurity. Only blockchains that can demonstrate utility will endure. Look under the hood before you leap (11/11)
Bottom line: if the BTC blockchain has no other purpose beyond ‘number go up,’ it deserves to fade into obscurity. Only blockchains that can demonstrate utility will endure. Look under the hood before you leap (11/11)
Calvin Ayre
Aug 05, 2024
https://x.com/CalvinAyre/status/1820459488819683702?t=PYUcmTuSyI9fQlY9dQOYCQ&s=19
The fiat value of prominent tokens like BTC nosedived over the past week, putting a serious crimp in BTC’s self-proclaimed status as ‘digital gold.’ Digital fool’s gold might be more appropriate. Or ‘digital pet rock,’ given its similar functionality (2/11)
BTC had been on an upward tear, allegedly thanks to Donald Trump’s ‘crypto’ embrace. The real causes remain as opaque as always *cough* market manipulation *cough* but when they run out of greater fools to bid it up higher, ‘number go up’ becomes ‘number go down’ (3/11)
The Tether stablecoin printer will probably spin up soon to provide an artificial floor under this deflating balloon and BTC whales will use the plunge to grow their existing stashes, further concentrating BTC ownership at the top, then the cycle will repeat (4/11)
But retail ‘investors’ won’t buy this dip. As the Coinbase exchange’s Q2 report showed, retail interest in tokens like BTC is dying. The predatory cycle has repeated often enough that FOMO (fear of missing out) has been replaced by FOBB (fear of being burned) (5/11)
As BTC’s ‘digital gold’ mantra is exposed as a hoax—actual gold hasn’t mirrored BTC’s plunge—the proposal to use it as a strategic reserve asset by the U.S. government (or pension funds adding BTC to their portfolios) is revealed to be A Very Bad Idea™ (6/11)
My critics might argue that the token associated with the BSV Blockchain technology that I support has also fallen in fiat value, which is technically correct. They might even have a point if fiat value was BSV’s only purpose. But it’s not (7/11)
Long ago, I got into blockchain for the technology. Over time, the tech-focused cohort was usurped by those seeking quick riches. It’s time to reclaim the purpose that Satoshi detailed in his Bitcoin white paper (8/11)
BTC’s falling price comes as block reward miners are already struggling due to the recent halving of the block reward. Worse, BTC’s mining difficulty just hit a new all-time high, driving the costs of mining even higher (9/11)
Expect BTC miners to continue their ‘pivot to AI’ as grid operators ask why they’re allocating so much of their supply to fuel a speculative bubble. If you can’t demonstrate a purpose beyond enriching a handful of bagholders, why should taxpayers underwrite this? (10/11)
Bottom line: if the BTC blockchain has no other purpose beyond ‘number go up,’ it deserves to fade into obscurity. Only blockchains that can demonstrate utility will endure. Look under the hood before you leap (11/11)
Bottom line: if the BTC blockchain has no other purpose beyond ‘number go up,’ it deserves to fade into obscurity. Only blockchains that can demonstrate utility will endure. Look under the hood before you leap (11/11)
Calvin Ayre
Aug 05, 2024
https://x.com/CalvinAyre/status/1820459488819683702?t=PYUcmTuSyI9fQlY9dQOYCQ&s=19
Comments
Be the first to add a comment
Log in to comment