Why I'm 100% out of Bitcoin for now and into Ethereum

in #bitcoin6 years ago (edited)

Time to get out of Bitcoin at 10,000

A recent post on Steemit Bill Gates Bearish on Bitcoin and Cryptocurrency Investments in my opinion puts a nail in the coffin in terms of Bitcoin price rising (it represents a sell signal) as there seems to be a lot of money on the sidelines looking for a way to short Bitcoin. Two major indicators are the fact that first the MtGox Trustee has a lot (and I mean a lot) of tokens for sale. In my opinion too many for me to feel safe buying Bitcoin due to the very strong probability of a dump or at least a price suppression due to so many coins being for sale. This MtGox scenario is that the Trustee has tens of thousands of Bitcoin for sale (400 million) and while this hasn't crashed the price so far it doesn't mean that these coins aren't reducing demand.

And the latest news is that Bill Gates is looking for a way to short Bitcoin. So not only is Bitcoin facing problems with coins waiting to be sold to suppress demand but also Bitcoin generates new coins via mining every day. On top of this, one of the richest men in the world is looking to find a way to short Bitcoin.

Interestingly Bill Gates specifically said he wants to short Bitcoin and highlights the fact that Bitcoin has no utility. This is not true for every token or for blockchain technology as a whole. Why might Bill Gates believe Bitcoin is not a good investment and should be shorted? Bitcoin doesn't produce anything, and doesn't provide utility. This is not the case in my opinion of cryptocurrency as a whole but this depends on circumstances. Cryptocurrency allows people to buy stuff online in privacy but depending on where you fall on this politically you may think it has no value or some value.

Conclusion


The problem of Bill Gates threatening to short Bitcoin is that it may be bad for the ecosystem. The ecosystem isn't JUST Bitcoin but if Bitcoin is shorted it negatively impacts Steem, EOS, Ethereum, actual projects trying to build utility will be negatively impacted in the short term.

The ideal situation to happen is an accelerated decoupling from Bitcoin. If Bill Gates shorts Bitcoin then in a decoupled ecosystem the money will flow to Ethereum or Steem or something which does provide utility. In that case if the ecosystem were robust enough, I would agree with Bill Gates doing the short. In my opinion money flowing toward utility is a good thing for long term sustainability of any ecosystem.

Short Bitcoin if it will make the money flow to higher utility blockchain technologies. This news and these signals confirm to me that 2018 will be the year of Ethereum.

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some interesting ideas, thanks, decoupling utility coins would be good i think as well!! at least in the long term as you point out

Bitcoin is obsolete and comparatively useless, comparing to the next generations coins, including ETH. It's so stupid that the altcoins still have no independence from this crap and are always falling with BTC every time some rich faggot decides to criticize it. I hope it dies off soon and the market stops hedging against it. Why not use Tether for that? Pretty retarded, IMO.

Tether is Omni. Protocol ontop the BTC blockchain. Useless? Any other use of blockchain than as money? At all? Anything new after Satoshi? What is next gen so much in Eth? It is even inferior in so many directions. It is a private party of bunch of lads who created and profit convincing people that 'it is just like BTC but better'.

What are you talking about exactly? ETH is inferior? Than BTC whose fees were about 20$ for a transaction last year? Don't make me laugh. BTC transfers is slow and expensive. It is just a prototype, the first of the kind. Yet some people still value it over the other technologically superior derivatives, which is not smart. Prove me wrong.

Eth is inferior because: [1] it tries to do general (meaningful) computation in the blockchain. Which is insane waste ( cf.: http://www.truthcoin.info/blog/pow-cheapest/ by Paul Sztorc - extremely educational, eye-openner material. very big rarity to read such a literate analysis ), [2] it is a hierarchic project serving its founders, I always say that a blockchain needs a firm as much as a fish needs bicycle, [3] BTC just works, ETH promises to do something for years, and ... doesn't do anything. ICOs are not Eth app. Not unique feature but way to deflate Eth and to increase demand ... There is to much will into it. ... etc.

  1. Excuse me for not reading, I have better things to with my time. Maybe later...
  2. Dude, what are you doing here then? Are you aware how STEEM works? That's even worse and add lots and lots of mismanagement and abuse here.
  3. ETH works the same way BTC does (storing and transferring value) AND does much more. This argument really makes no sense, no offense intended.
  1. excellent., 2. sorry if i do mistakes I'm a novice, 3. 'much more' is what I can't wrap my head around for years.

Well, look up ERC20 tokens then, mate. Can BTC provide anything like that? No and it never will. ETH will eventually dominate thee market, as it should.

I looked more throughly ERC20 standard. I see no diff. from Omni. Technically. Marketing effort-wise, yes. But this is extra-chain thing.

Tether? What does Tether even do and isn't it a security?

I have to confess, I never looked deeply how it works, however it is kept equal to 1$ at all times which provides a quick way out of volatile crypto without actually getting fiat, thus keeping the transfers instant and cheap. Without a third-party bank or whatever robbing you of your dimes.

Tether is not a security. It is a money service business. Cf.: ''U.S. Department of the Treasury (MSB Registration Number 31000058542968).''. Full compliance. Tether is an Omni token ( comm layer) over protocol layer (Bitcoin). Legally it is a claim for USD. Like a bearer quantized digital certificate. Or electronic check. If it was an ERC20 Eth token would be praised as a 'smart contract' :) :) :) - very successful example. The only weakness of Tether is that it is not redeemable, or settle-able by the issuer or rather the 'backer'. If it was you do not need Ripple, because as an interface between crypto and fiat would be multi-trillion daily turnover business. And this will happen. Rather by some form of Omni/LN-like Tether 2.0 by other dev, than from evolution of Tether. Tether and Bitfinex btw survived several regulatory scrutiny 'attacks' - if they haven't have the hundreds of millions of USD deposited than the consequences would be freezing and dissolution of the firm and few lifetimes jail for the ppl in the org ...

I hope that works out for you. I have my doubts about Ethereum and its ability to scale in the near future. We saw last year how CryptoKitties slowed down the entire network. The improvements that have been made since then have been incremental rather than dramatic. If EOS works as advertised, it will be a formidable competitor to Ethereum. On top of that, there is risk that Ethereum will be classified as a security, as well as tokens issued on the network by others. I hope the SEC will make a decision on that soon to clear up the uncertainty. Good luck.

Sharting is coming

Sharding i.e. hierarchisation of the network + PoS = typical holding structure :P

Thank you for this nice article. Decoupling of Bitcoin from other crypto-projects like Ethereum, EOS or Steem would be a big step in a good direction. It might be a long way to overcome the BTC 1st mover momentum. What do you think will help more to accelerate this decoupling - negative pressure (like the Bill-Gates one you describe) or possitive news about higher utility of the competing technologies?

Thank you for your important and useful participation

Just recently a friend on here talked about the interview with Billionaires Warren Buffett, Charlie Munger and Bill Gates, . He said and I quote

Charlie Munger is a sick human for his immorally comparison of Bitcoin to Fresh Harvested Baby Brains.
it's plain to see the Elites are either worried or they are in on it and buying in the OTC dark pool Bitcoin markets
Don't listen to these three fake New World Order puppets and their visions of money for the future. Warren and Charlie were touting the use of checks and outdated, easily scammed credit card transactions as working just fine. Baby Brains! Sick!

My reply to him

You see I understand what they are doing , they say if you can’t beat them, then join them. They fear blockchain , they are scared of decentralized system where all their acts of impurities will be unveiled and not looking like money gods and dictating what and what not to be when it come to currency. They are sick indeed. Thanks for sharing your opinion my friend

Coins mentioned in post:

CoinPrice (USD)📈 24h📉 7d
BTCBitcoin9326.620$2.44%0.96%
EOSEOS18.164$3.26%-0.58%
ETHEthereum761.060$4.85%5.92%
STEEMSteem3.413$1.65%-13.38%

Your amazing post @dana-edewards, I do not praise you, I am a beginner in this crypto world and I am female, I keep learning, may we all succeed,😍

While BTC doesn't have as much utility as smart contract platforms like Ethereum or the proposed scalability of EOS/Cardano/IOTA etc. it would be wrong to say it has no utility.

Lightning Network is just starting out, but growing nicely, and already we can see the effects, with quick, low cost transfers. No coincidence that Reddit plans to re-launch BTC payments soon.

What is perhaps more interesting for the future of BTC utility is blockchain interoperability. There are now a few projects of note working towards this - ICON, AION, Wanchain, Blocknet. Its technically challenging, but at least one of these is likely to succeed, and then we have a game-changer scenario. Suddenly Bitcoin's first mover effect and still unchallenged position as preeminent store of value could be cemented.

BTC has proved remarkably resilient over the years, and still has by far the strongest community and great devs (altho arguably Ethereum has the best). The network effect is there - a lot of people have heard about Bitcoin, but few have heard about anything else. Once the masses come to crypto, what do you think they will buy first?

Im not a BTC maximalist, and technically speaking, its a dinosaur, but I'll sure be holding a portion of my portfolio in BTC.

Tldr; don't write BTC of too soon - its got some utility that will likely improve over time.

Yes it is VERY wrong to say it does not have utility. It is like to say that money does not have utility. I'm not ideological BTC maximalist, but after Satoshi - nothing. Only younger (difficulty) clones and caricature imitations.

I would not overinterprate the Gates´s and Buffet´s statements at all, quite in contrary. For me this is delicate psychology to drag down the price. They know that their statements could influence the price, and since they are obviously underinvested, they have no interest in regaining the 10K level again soon, which would be very bullish. So they took the right moment to give the BTC price a nice push down - it had not too much effect by the way.
Moreover, Gates is not that stupid that he doesn´t know how to short BTC.
BTC will for quite some time be the no.1 cryptocurrency.

True. Also ... I'm sure Buffet does not understand BTC. Never had read the few pager of Satoshi. Totally misses the concept out. He's praised as super-investment genius but how many are like him? to maintain for decades XIXth century style uncle Scrooge 'strategy'. Also Gates -- okay, he's excellent for some next POTUS , but ... what are his breakthrough's in the last 30 years? Why an anonymous guy with 'capital' of few hundred dollars creates BTC but super-giant corporations which spend so much on IP landgrab, on R&D failed to bring breakthroughs? Based on that I simply disregard the opinion of people who ... totally missed it.

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