I am seeing no “real-life” mass adoption
I have been having some thoughts about #bitcoin and #altcoins recently π
Last week I tweeted ….
I have sold all my #crypto recently and booked a decent gain despite everyone and all indicators saying it’s the start of a new bull run.
Rationale for this decision is as follows.
Altcoins – the ecosystem is apparently thriving but all I can see is kids gambling desperately to climb out of a bucketful of debt and poverty.
Bitcoin – I suspect retail is going to be sold a wholesale dummy soon by the whales in respect of the blackrock etf chatter. Today I’m fearful when everyone else is greedy….
Tomorrow I may feel differently.
…. and today three things struck me about bitcoin.
1. Trading volumes
Pre hype trading volumes were huge compared to the current volumes which are pitiful by comparison. Volume has only decreased as price has increased. This could be problematic in the future.
2. Mass adoption
#btc will only survive imo when mass adoption by the public increases transaction fee volumes (and so reduces fee charges because of economies of scale) to create the economics necessary to incentivise someone to run the network after all the tokens have been mined.
3. Exchange traded funds
I read today, somewhere, that the introduction of BTC ETFs will encourage people to invest in the etf itself rather than the underlying asset – btc – thereby swapping BTC trading volume for BTC etf trading volume which will exacerbate 1 and 2 above.
To conclude…
In conclusion, BTC will die without mass adoption.. this latest move may, ultimately, kill it.
Not investment advice. #DYOR
