3 ms·
The big challenge is actually the set of core features: decentralization, trustlessness and permissionlessness. These are the features that allow the pricing t
by arcticbull 5y ago
The big challenge is actually the set of core features: decentralization, trustlessness and permissionlessness.
These are the features that allow the pricing to be manipulated beyond any semblance of connection to reality. Any number you see, any stat you see, any data presented to you is likely fake. This is made possible because of trustlessness, permissionlessness and decentralization. Nobody can stop it by design.
95% of all trading volume is fake. Exchanges fake volume to draw in new gamblers. [1] The pricing is determined by Tethers, which account for 65% of all trading volume [2, 3] but are backed by $0.03USD per USDT and hot air and are not redeemable by anyone [4]. Even USDC is now backed by "approved investments" instead of dollars [5]. That's just a small sliver.
Aparently 1/3 of all small and medium businesses in America accept crypto! Fun fact. Are you sure? Because I haven't seen a single one. [6]
The actual market is roughly speaking totally unrecognizable.
The only thing we know for a fact is that new money has to come into PoW coins equal to the cost of mining just to keep the price stable. Anything above and beyond that is almost impossible to know for sure.
This is what libertarianism looks like (humorous take [7]). It kinda sucks.
[1] https://www.forbes.com/sites/cbovaird/2019/03/22/95-of-reported-bitcoin-trading-volume-is-fake-says-bitwise/ https://www.forbes.com/sites/cbovaird/2019/03/22/95-of-repor...
[2] https://onlinelibrary.wiley.com/doi/full/10.1111/jofi.12903 https://onlinelibrary.wiley.com/doi/full/10.1111/jofi.12903
[3] https://coinlib.io/coin/BTC/Bitcoin https://coinlib.io/coin/BTC/Bitcoin - among others.
[4] https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b4d9 https://www.ft.com/content/529eb4e6-796a-4e81-8064-5967bbe3b...
[5] https://www.coindesk.com/circle-is-not-winning-stablecoin-transparancy-race https://www.coindesk.com/circle-is-not-winning-stablecoin-tr...
[6] https://bitcoinist.com/36-of-u-s-smes-accept-cryptocurrency-payments/ https://bitcoinist.com/36-of-u-s-smes-accept-cryptocurrency-...
[7] https://www.newyorker.com/humor/daily-shouts/l-p-d-libertarian-police-department https://www.newyorker.com/humor/daily-shouts/l-p-d-libertari...