There is a lot going on with Bitcoin. This is causing a push higher in the price for the leading cryptocurrency. It is resulting in the dominance of Bitcoin moving higher.
What is causing this and when will alt-season kick off?
This is a question that is market based while also missing the entire premise of what we are dealing with.
Bitcoin is now running because it found utility. For altcoins to follow a similar path, guess what has to happen? Utility is required.
Image generated by Ideogram
The Lesson Of Bitcoin For Web 3.0
Web 3.0 is lagging at the moment. So far, there is not a great deal of utility. This is something that is holding it back.
Market watchers are focusing upon when their favorite coin will go up in price. After all, it is a bull market. While markets do their own thing, expecting something with little value to jump based upon the move of other coins (or tokens) is misguided.
Naturally, we can never accurately predict what markets will do since they do some strange things. Logic is not part of the equation.
That said, we can see some components that are applicable. I will never deny the Greater Fool Theory. That is certainly a part of markets.
Which brings up the point of this article. Bitcoin is providing a lesson for Web 3.0. Here is where I think focus is warranted.
Bitcoin's Utility
For years, we heard from the Bitcoin Maxis that Bitcoin was the solution to everything. It is not. As a medium of exchange, it is pretty bad. The Maxis still refuse to accept it yet even the likes of Michael Saylor are changing their tune.
The narrative shifted to Bitcoin as a store of value. This is plausible since that requires only people to buy into it. What people perceive as having (and holding) value tends to boil down to confidence.
Bitcoin appears to be doing this. It is supplemented by the fact Wall Street is jumping in, viewing it as a new asset class. We see articles appearing daily pertaining to this idea.
Here are just a few from the last couple days:
I would say this is far from the vision of Satoshi. Nevertheless, Bitcoin did find its niche.
This means utility. These corporations see value in Bitcoin. Some are simply taking the store of value approach, looking at add to its balance sheet. Others, such as Blackrock, are rolling out a host of new products tied to Bitcoin. It just expanded the Bitcoin derivative world with options on the Spot ETF.
Web 3.0 Utility
With Bitcoin, there are underlying reasons to hold it. We know a lot is in custody of Wall Street firms. The introduction of the ETF meant the BTC is held against the units issued. This is compounded by the fact that options can be created through the units in the ETF, meaning we have a second layer built.
As this expands, it is likely more Bitcoin will be acquired.
Turning to altcoins, what is the point of them? This is something that is espoused by the Maxis. On the surface, they are not completely wrong.
Looking at cryptocurrencies simple as a financial vehicle is where things go awry in my opinion. Outside stablecoins, there isn't really much of a medium of exchange, at least not an effective one. Thus, where does the value come from.
Here is where I think the concept of digital real estate enters. A coin or token denotes partial ownership in a network or platform. In other words, it is a representation of a portion of a network.
Going once step further, it is a claim against the value that is generated.
Which brings us to the question of how value is created in this realm. To me, the answer simply resides in the utility provided by the network or platform.
It is not a novel concept since that is basically how all digital platforms operate. Network effects are kicked off via utility. Platforms provide services that people utilize.
How has Web 3.0 done in this area? So far, I would say it fell short. Perhaps we can state that some financial applications are having success. Outside of that, we have a hodgepodge of applications struggling to achieve sustained growth.
It took a long time for Bitcoin to settle into its role. Web 3.0 can learn this lesson. The key is to focus upon building utility, especially as we move forward in an AI world.
Posted Using InLeo Alpha
https://inleo.io/threads/view/omarrojas/re-leothreads-2ecnhcvuh?referral=omarrojas
My men, you should evaluate the use of the hyperlinks on your posts. More than 10 link, and most of them are not related with the post thematic, only affect your SEO.
Interesting times ahead.