Postponing the ETF decision and the market fall - are we going down to the bottom or do we have new growth opportunities?
Aloha, pirates!
Recently, we all have seen how our treasures are drowning. Do you also look at the charts and wait for a miracle?
Does the Captain have a lifeboat? No. Better! I have a picture of this boat!
)
There is no secret that now we are under pressure of news that the SEC postponed the date of the ETF decision again. I have a couple of thoughts about that.
Well. HODL or you have already sold - it doesn’t matter. There are several moments that you need to keep in your head. Let's start with the most important...
No doubts, ETF is inevitable.
It’s only a matter of time. As you can see, the list is really impressive.
There is no doubt that the SEC will approve the ETF. The traders are also convinced of ETF acceptance.
Everyone knows what this means for the market. Now the market is falling and you need to be patient.
But let's look at it, as on seasonal discounts?
Indeed, many of us just didn’t think about it that way. Now it is a great time to go to the market with the dollar, we wrote about it - Hopes and fears about big money in crypto.
There are projects with sharp technologies and great prospects, in which you can always invest. EOS is one of the best in this list. Prices are encouraging and now many tokens are traded at the price level of last autumn.
Here a selection of projects from your Captain:
- EOS
- 0X
- Loom
- Steem (The rate has already caught up with SBD and even below)
- ZIL
- ETH
- Ontology
Well, that's all. Any thoughts? Write to me what do you think and I will definitely answer!
Read my previous article: Will sharing economy projects in blockchain “uberize” Uber?
My Telegram channel: Captain Hook Crypto Tales
hey man! What about Tezos?
@mikemore I'll write an article about this. This is a very good project :)
whats super cool about eos is the airdrops, I already have 8 coins!
Hey, @lanmower. Are you talking about airdrops on EOS blockchain?
Well, I'm buying BTC at the current price, but that doesn't change some facts. A pal asked me why I was so bearish with the crypto market and crypto tech in general. My reply was this and I'm posting it here so maybe you can explain me better than he did:
I think that cryptocurrencies are dangerous in the long term due to several reasons. I need to start talking about law and order, several thousands of years ago people had no laws and killed each other and took things from each other without retaliation. If we lived without laws today, I wouldn't be able to sleep or walk in the streets towards my job. Mankind came with a simple solution, in order to keep things calm between two people, a third one was needed, both people would give that third person the authority to stop both of them of their own free will, and thus laws were born. Laws are enforced by that third party in any way necessary according to the laws themselves in order to faithfully protect the first two parties. Of course, there is a lot of corruption and other factors influencing that third party, but that's the general idea.
Now, why bother bringing laws to cryptocurrency discussion?, well, this is due to backing and responsability. Suppose we go back to the two party example above, if I say I've got something that is worth as much as your house, would you accept it if you don't think so?, a third party needs to be the judge again, and what if I appear with a bunch of papers and tell you those papers are worth everything you got? will you believe it, would you "trust" it?. The keyword here is trust, if I have a billion dollar account and offer to buy your house, would you sell it?, you're receiving paper for that house of yours, or even numbers in a computer, yet you trust the value of that paper; the government and the banks work to keep that value. On the side of the cryptocurrencies, who will vouch for the value of a crypto? who will you trust to keep the value stable or to increase it? there is no one, no one at all.
So first issue, cryptocurrencies cannot be trusted, and this doesn't apply only to the value of the cryptocurrencies itself, but also to the fact that they are damn hard to trace, which means that all sort of illegit and not good behavior can occur using them, terrorism funding, drugs, human traficking, organ selling, the dark net is ripe with people moving cryptos to their benefits, since they're out of government control. Another core point is the cost of mantaining the currency itself, normal fiat currency is just managed in computers and printed or minted when necessary, the costs of mantaining such a system is very low and it supports big transactions without much effort. In comparison the cryptos need tons of computing power to do the mining and keeping the nodes running and registering the transactions. And what if someone decided to transfer 1 Trillion in bitcoins? the network wouldn't be able to tolerate that, the fees and the cost and the time would be ridiculous. But banks too have hefty fees, don't they? This is actually related to the third point I'm going to tackle now: Global nationalization.
Yes, you read that right, instead of globalization we're in a era of global nationalization that impedes the creation of anything truly worldwide, much less the creation of a worldwide currency. Countries close their frontier more and more every day, and we're surrounded by people who talk about feminism, machism, racism, and all sort of different genders. Instead of reffering to each other as citizens of planet earth or just humans we always refer ourselves by our titles and our countries, stuff like that... even for the Euro which had the full backing of several governments and banks it was a hard ride and they're still struggling with only a few countries in very close locations; can you truly believe a currency with no government and people's support can be adopted worldwide without drastic consequences? I can't convince myself to believe it, not while our modern socioeconomic system is like this.
The final problem is a purely fundamental economic one and it's the fact that cryptocurrencies are limited in amount. Let's assume for a moment that the world has abolished fiat and everything worldwide is priced in Bitcoins. For the sake of argument let's assume that money is distributed in the same way as it's today, soccer stars and financial firms have a huge amount of bitcoins while the average person only has fragments of bitcoins. Prices are suited to the average person of course, so a TV would be worth like 0.02 BTC or less, but what about fees for transactions then? wouldn't they be as hefty as the banks's current fees? food for thought. Returning to topic, since bitcoin is limited more bitcoins can't be printed and how would these people accumulate more riches? This is an issue, but even worse is what would happen if these people went on a buying spree, the market would be flooded in bitcoin, decreasing their value, so that the average person's bitcoin would be worth even less and they would be forced to part with bigger amounts, but in the end it would all go back to them, because they're the 0.01% of the population that holds control over the 99.9999% of the economy. So over enough time the gap between the rich and the poor would become even wider.
The final key point is the problem of security in such a decentralized environment, no one is to be held responsible for whatever happens, and forks can happens and, heck, let's use the right word: "SHIT" can happen, I was just reading about how several malwares and cracking techniques were being used against Bitcoin ATMs for example. Even government and banks can be hacked every now and then, but there is some degree of safety, in fact, at least in America, if your bank goes broke the government will pay you at least 50.000 dollars if you had at least that amount in the bank. And since transactions only occur between banks and bank accounts they're very secure because they have billions spent in safety, you can't compare that to the public safety of the chain, right?
Those points are enough to make me doubt the lasting power of cryptocurrencies and to be honest I only see them as a speculator's playground, a way to try and make some money since I live in a third world blockaded country and cannot trade forex or invest in stock indexes, trust me, I wouldn't get involved otherwise. Just as Starbucks said: "We don't want digital currencies, we're just providing a platform so you can exchange that and pay us in fiat", I also saw another interesting news: "Bitconnect's BCC is getting delisted due to lack of liquidity with a market capital of 5.6M" meaning that 5.6 millions are just disappearing because people can't accept the change of value, this is simple, someone who bought Bitcoin near 15k would willingly sell it for 800 or 700$? yet someone who just reaches the market won't pay 15k again, so the coins don't move and thus lose ALL value... another beauty of the free market.
That's it, what do you think? I believe that since you're a crypto enthusiast you have solid bases to rebate all of these points and convince me otherwise and I'm more than willing to listen if that's the case. Cheers and see you around.
@ejgarcia Hey. You have many thoughts, so I answer you. To some extent you are right, but. Come on in order.
Laws and the state are not what you think. The state is not only a defender. It destroys you. Laws are important, but they are violated now. When the value of a cryptocurrency is recognized by society - this society guarantees you that you will not lose money. In the end, if the cryptocurrency is money, you will not be interested in the idea of evaluating them.
In the future, the cost of cryptocurrency will grow. This will allow settling without problems. You do not need a whole bitcoin, you can use as much as you need. More or less.
And further. If people want to sell bitcoins and the price fall off, how do you know about it? Bitcoin will always cost one bitcoin.
In addition, when you buy something using bitcoin, you will not sell bitcoins. This will be just a transaction. Besides, you can track it. It's comfortable.
Every day there are many deals to buy and sell the dollar, but prices do not change from the fact that someone today bought a lot of dollars, or sold.
Also, the government can influence the amount of money in the economy. The more money, the weaker the currency. Bitcoin is protected from this and you are always sure of its integrity. People support this system.
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