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RE: Why I'm Negative on Bitcoin

in #bitcoin7 years ago

Webmora,

On the topic of ICOs, I discuss that in a previous article I've written as a catalyst that could cause Bitcoin to spiral: https://medium.com/@Truth_Investor/bitcoin-three-ways-the-bubble-will-pop-40678ce11698 (number two). Here's the response I gave to someone who questioned how a collapse in ICO funding could potentially cause Bitcoin to fall:

"Yes, Bitcoin is not directly affected by ICOs. However, it is correlated with Ethereum and will be dragged down if Ethereum goes down regardless of whether or not it makes sense, similar to how small caps can move down on macro news that has literally zero impact on them. Note that correlations (the statistic) increase during bear markets.

A lush ICO economy leads to extensive visibility from VCs, wealth managers, and accredited investors. They become exposed to the entire cryptocurrency scene. I work with two wealth managers who wouldn’t know a thing about Bitcoin if it wasn’t for what they heard about blockchain applications. One of them is considering buying. They are whales."

As for your thoughts on Ethereum with Solidity, I have no strong opinions as I am not technically qualified enough to comment on it specifically. I've done limited reading on the subject that illustrate the flaws you are concerned with, but the technology or underlying code has never been a concern to me with most of these cryptocurrency projects that have actually have an existing product. What I've found to be true throughout history is that solutions exist or will be made at a far faster rate than they get implemented due to the nature of bureaucracy, which gets even worse with open source projects. I know that's a general comment to your rather specific concern, but it tends to repeat enough that I apply it more as a rule of thumb. The politics of Bitcoin / Ethereum and all the other cryptocurrencies will play a far greater role in the speed of their adoption than tech will.

I appreciate reading your assessment of the top cryptocurrencies out there, as I am sure many others are as well (evident by the upvotes on the comment!). Don't undersell yourself - as mentioned in one of these responses, you could easily make content yourself (and I would recommend you give it a shot). I hope to attract more quality contributions such as this comment from you in the future as well as others. Perhaps at some point I will have a relevant amount of Steem Power to reward such contributions fiscally. But for now, thank you for taking the time to write this out and I hope you stick around.