Just as the end of the 20th century was marked by the unbridled orgy of internet companies, the second decade of the 21st century continued the party but in the form of cryptocurrencies. In the case of .coms, the bonanza came to an abrupt end for most investors as they saw hundreds of billions of dollars go down the toilet, along with the business of web companies that were nothing more than a digital version of the work of Carlo Ponzi, the famous creator of the pyramid scheme that bears his surname.
Yes, it was a very painful lesson where most of the investors who risked their savings in this business lost everything, however, after the massacre the internet resurfaced in a different style and only the strongest companies not only survived but also became super powerful and even omnipresent conglomerates, such is the case of Google, Facebook, Amazon and Netflix.
In recent months the world's most important media outlets have pointed their cannons of half-truths and particular interests of their owners towards the fall of Bitcoin, whose correction from 67k USD to yesterday's 16K USD has marked a real mass hysteria in the world of cryptocurrencies. Suddenly supposedly solid projects such as Celcius, FTX or LUNA crumbled like an Oreo cookie in a cup of hot milk, which in the opinion of many "experts" determines the danger of investing in cryptocurrencies because of their high volatility.
Seeing the model of many of these projects, especially those exposed within the spaces of decentralized finance (DeFi) I feel that a resounding failure could be expected, as many investors decided to take positions under a brutal leverage (in short debt) to acquire Bitcoins at first and then convert them into various tokens that promised very high rates of return in a period of one year, yes, you earn interest expressed in the token not in the principal of the cryptocurrencies, those do not return to their previous owners.
I don't consider myself a mega smart person but I do like to apply logic to everything, let's see, if I have 1 BTC why am I going to convert it into a token "X" whose supply is as infinite and valuable as the Fiat currency of a third world country? As attractive as it may seem to receive a lot of this token, you are simply giving gold and receiving little mirrors as Christopher Columbus and his gang did with the first inhabitants of the American continent.
Evidently, in the face of such a formula, the vast majority of projects in the crypto world are likely to perish like dinosaurs in the face of a big meorito. Without wishing to sound Darwinist, only the most solid projects will survive the collapse.
So far the only cryptocurrency capable of surviving, adapting to this financial Tsunami and coming out stronger than ever is precisely the now questioned BTC, which seems far from extinction as some politicians and world leaders wish. The reason why the work of Satoshi Nakamoto seems to be shielded against the crypto-financial holocaust lies in the fact that none of the processes involving Bitcoin, from the issuance to the management of the blockchain and mining, involves the participation of human beings, therefore no one can sabotage a technology created to offer guarantees of equality to its users, no matter how much they want to.
It is clear to me that the BTC is only manipulable in its price, and only if those of us who have some units or satoshis give in to the temptation to keep them out of our own wallets, that is, our entire vigilance, otherwise the undervaluation of the most important digital money in history will continue until the great elites can keep the Fiat system alive, a financial model that seems to have an imminent end.
But I also think that those projects that have a lot of technological support from powerful investors and companies with a high innovation profile will have on their side the ability to overcome the collapse of cryptocurrencies, to become not only an alternative to bitcoin but a project that could establish an independent behavior in terms of its valuation with respect to the still main cryptocurrencies.
It seems evident that at least 90% of the projects in the cryptosphere will die, either due to lack of support, lack of funds or loss of confidence of the community in the project, in a moment.
Posted Using LeoFinance Beta
We are still in the face of revolution, moving from fiat money to online money, every coins won't be able to survive,the only thing that can help coins in this era is to have usecase
Posted Using LeoFinance Beta
A bit scary your stuff.
Posted Using LeoFinance Beta
Hi @nirvana3003
Certainly the situation in the cryptocurrency market with the controversial FTX case generates too much uncertainty and the feeling of holocaust proximity.
That is correct, and in these cases the best thing to do is to act sensibly and not let fear decide for us.
Posted Using LeoFinance Beta
99% of crypto are not viable for more than a cycle or two.
Celsius, Voyager and so on offered insane yield, too good to be true. They achieved that through lending. Why would people want to “borrow” BTC?
If BTC is that good, why would people lend out BTC in exchange for lesser collaterals?
Do these companies have the ability to collect bad loans?
The end story is they all over leveraged.
BTC started to counter fractional reserved scheme of fiat, exchanges are now running the same model.
Totally agree, last year's bull market seemed to indicate that BTC's correction would be as insane as its rise, something not expected by those who peaked under leveraged schemes.
Unfortunately many people got carried away by ambition and instead of keeping their BTC they let themselves be convinced in moving their money towards "decentralized" financial mechanisms that guaranteed you lots of profits expressed in tokens of dubious performance, the truth is I don't know what they were thinking, but today they must be selling the "Lambo" to buy a cheaper (and less photogenic on Instagram) utility car.
Posted Using LeoFinance Beta
Only HIVE and BTC will survive.
They are the only two genuinely decentralised crytpocurrencies with genuinue use cases, self sustaining node economics and users who will stick with them through bad times.
Hive is a great platform with a high degree of decentralization but not 100% as is the BTC, precisely because of the enormous influence that whales exert on their ecosystem, which determines much of what is done in their community.
Posted Using LeoFinance Beta
I'm afraid I'm not as optimistic as you. Bitcoin is something like gold in the material world. It has its value and its finiteness, regardless of human management. But just as gold has bobbed along for decades, Bitcoin will. And its holders can only watch as wealth is distributed, created and destroyed with pyramid schemes in fiat and altcoin.
Posted Using LeoFinance Beta
Evidently you show another somewhat pragmatic (and just as valid) view to the situation regarding cryptocurrencies. It is a reality that BTC is a value as absolute as gold and that it can be susceptible to manipulation in terms of its price, however, both in its issuance and technology human intervention is null, therefore it generates more confidence among users. On the other hand, unlike gold, BTC does not require large expenses in storage and safekeeping, if you keep your cryptos in your possession along with your passwords you can hardly be a victim of a hacker, another thing is to keep them under the care of third parties. Greetings and thanks for your comment.
Posted Using LeoFinance Beta
I totally agree with you on all points.
I was going for a different aspect. With bitcoin alone, the crypto world will be too small and too insignificant to have an impact, so more coins are needed.
Thanks for explaining your arguments again
Posted Using LeoFinance Beta