How I Became a Bitcoin Maximalist

zettt (42)in #bitcoin • 5 years ago

How I Became A Bitcoin Maximalist in 3 Years

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Introduction

I'd like to write a little bit of a personal story in this post. My journey into cryptocurrencies started December 2016, when we were recording a conference where one of the speakers talked about Bitcoin and blockchain. Obviously the whole "you are your own bank" thing totally caught my attention, and I was hooked the years moving forward.

2017 was the year of the shitcoin, and the ICO. It was when I got more into financial math than I ever imagined, and it got me into the trade of trading, which I still find very enjoyable, although very hard in terms of execution. Back then I was fascinated by all these projects, and their promises to change the world for the better. Every currency sounded better than the other, and to a certain degree they were, or are, but I also had my difficulties.

Let's fast forward to a more grown up view of the industry.

The Traders Dilemma

Traders are, I realized, unemotional towards the asset they are trading. It doesn't matter if something goes up or down, as long as it makes enough profit. So if something is actually used somewhere is irrelevant.

I'm also a very technical person. So I've been trying to use some of these coins for things outside of a crypto exchange. The truth is, no one really accepts these "currencies", or is using them at all. Many of these so called "blockchains" promise to solve a scaling problem they just don't have. And to you, as an "investor", they promise that these scaling solutions will be needed because of the massive growth and adoption these "blockchains" will have.

This might sound preposterous to some of you, but even the large cap cryptocurrencies are not taken for payment anywhere. Bitcoin is stigmatized for being a "black market" currency, when research has shown it's rarely used for it. But as far as my research goes, these alts are only taken on these markets. I don't know anyone whom I could send some Dash to. I don't want to get into the technical details why these blockchains seem to be so full then, so let's just say that I say "rarely used for anything".

Price Manipulation

In 2019 and the early 2020 my suspicion of the space grew, as I watched the infamous 52 mill. order book spoofer appear. No matter if you belief in spoofing or not. What they have done is push the price to our current high at around 10.000 Dollar. Of course everyone was happy, because many "traders" (in parenthesis) suddenly made money again, and everything was just okay. Except, I grew skeptical, because I found out about institutional order flow (1 and 2).

There's also JOE007, an apparent smart trader, who got underwater with a short, and got roasted for being in such a short for such a long time. And obviously there are other "maximalists", which stories all started making a whole lot of sense.

Blockchain as a Cash Machine

What if the "altcoins" weren't made as an alternative for Bitcoin, but as a means for their founders to make an enormous amount of money in an unregulated market? What if skeptical folks like Tone Vays, JOE007, and many many many other market analysts are right? What if they know their shit better than any new kid on the block investor? Makes sense? Read on.

The not so nice sound reality that nobody wants to face is: what if someone would create a project out of thin air, and dump their huge bags of premined coins on you, only to make money?

Is that too far stretched? I mean, nobody thought Volkswagen would manipulate their engines, but they did. Various other industries have been caughting hiding the truth as well. It's logical, in a way, because businesses need to survive. And to survive they need to sell. And that's the bitter pill I needed to swallow (again).

Because let's face it: In private chats from people on my trading blog, the response is pretty much always the same.

"I trade these coins only to make a quick buck."

Not a single one actually intends to use Ripple outside of Binance. And that's what these people call an industry.

Crypto is an industry. It's an industry where the miners create coins, that they need to sell. If you want to read more about my theory of the market, please visit my trading blog. It's for the intermediate traders. In this post I explain in a lot more detail why we had our recent mini-bull market.

Why Satoshi Left

So keeping all this in mind, I started to wonder: What if Satoshi left Bitcoin so that it can be truly free--as in "also free from its creator"--, or whether he left because he saw what Bitcoin, and its smaller cousins, might become?

Whatever the circumastances of his leaving, it made sense to be fully bullish on Bitcoin only. I'm still wondering if Bitcoin really needs a monetary value attached to it, or whether all this trading is just pure nonsense. Maybe humans aren't supposed to interact with Bitcoin directly, and it's only programmable money computers can use? Think about all those lost coins every year.

I mean, who knows? Who knows what Bitcoin is going to be in the future?

#maximalist #blockchain #satoshi #blog

5 years ago in #bitcoin by zettt (42)

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