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Tying the entire crypto market to BTC/ETH was a colossal mistake
| Fear-inspiring nibblets library | 02/05/18 |
| Idiotic gaping | 02/05/18 |
| laughsome roast beef | 02/05/18 |
| Flirting stage | 02/05/18 |
| provocative public bath | 02/06/18 |
| vivacious circlehead | 02/06/18 |
| laughsome roast beef | 02/06/18 |
| vivacious circlehead | 02/06/18 |
| laughsome roast beef | 02/06/18 |
| vivacious circlehead | 02/06/18 |
| Flirting stage | 02/06/18 |
| Bronze dingle berry keepsake machete | 02/06/18 |
Poast new message in this thread
Date: February 5th, 2018 11:51 PM Author: Fear-inspiring nibblets library Among 1,000 other reasons, it is impossible for any coin to independently maintain value, because their USD price swings instantly with the rise and fall of BTC/ETH. This is partly due to bots trading on exchanges, which instantly adjust buy and sell orders as the BTC/ETH market shifts. But tracking services such as CoinMarketCap also colossally fuck up the market by tying everything to USD. People log in, see their shitcoin has seemingly dropped 20% in USD value, even though nothing has happened other than ETH/BTC falling for some inexplicable reason. In other words, a solid shitcoin project can be utterly gaped because of events completely unrelated to that coin. This happens in the regular stock market of course, but in Crypto its like giant NOS bottle being forcibly stuck up your asshole and let loose without warning. Mainnet go up? Too bad, asshole blown out because BTC futures are about to expire. New partnership with Oracle? Sounds great, but Vitalik just went on a SHARDING twitter rant, so pepper your angus, because you’re gonna get no-lube raped.
For those that do not follow, take a hypothetical FAG-Coin ("FAG") that is trading at .05 ETH when ETH is at $1,000. Your FAG coin is worth $50. By way of example, ETH suddenly drops to $500. Now, a single additional trade of FAG on any tracked exchange at the same ETH price of .05 and the "value" of FAG drops to $25. Most of us understand this concept. We also know that to "make money" in shitcoins we typically need to pay attention to the ETH/BTC price, along with the USD to determine if it is time to "take profits."
But I think we do not appreciate how devastating this is to the perceived market as a whole. This fraud market ties the value of assets that are extremely volatile to begin with (shitcoins) to assets that are also in turn themselves also extremely volatile (ETH/BTC). On top of it all, you have Reddit queers superimposing the USD price over their shitcoin portfolio and freaking out when their shitcoin “drops in value,” even though it is simply tracking the price of ETH/BTC. To be fair, guilty as charged. Fuck my ass.
In significant down turns like right now, this is why we see the utter gaping of shitcoins. The flight to "quality" ETH/BTC (lol!) is coupled with people genuinely leaving the market. The problem is exacerbated by Bitcoin's increasingly lower dominance in the market. You have more Fiat flowing into BTC to buy Alt-Coins, making BTC less relevant, yet a rise/fall in BTC still instantly effects prices across the entire market. Say, for example, BTC’s dominance dropped to 20%. Why would we still peg other coins’ value to BTC? What about 10%?
Aside from the fact that many of these coins are truly worthless, I do not see the market stabilizing until Alt-Coins are de-coupled from BTC/ETH. This was a horrible fucking way to setup trading to begin with. Even if there were shitcoins "on sale" right now there is no way to reasonably predict how this violent plummet of BTC/ETH will pan out. And should we see true Fiat to currency exchanges on a wide scale, which seems inevitable, prepare yourself for a true crypto reckoning of the likes we have never thought possible. To the extent any coin has value, BTC/ETH at least have a stake on being the backbone of exchanges, ICOs, and the overall value of the market as a whole. But guess what happens to BTC/ETH when Asians can start buying RIPPLE with motherfucking YEN? Bye-bye market dominance. Bye-bye market cap.
Tying every crypto to Bitcoin was a colossal mistake, brothers.
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Date: February 5th, 2018 11:55 PM Author: Idiotic gaping but what else would you suggest for an alternative currency system that wants to replace fiat? (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35335388) |
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Date: February 5th, 2018 11:56 PM Author: laughsome roast beef While the need for a (not sketchy and actually withdrawable on more than one exchange which most people can't even join anymore) stablecoin is real, shitcoins experience more violent swings than bitcoin. I'd argue that tethering their price to btc is part of what allowed them to moon so absurdly in the first place -- people would use their bitcoins which had previously mooned to massively overpay for the shitcoin of the week. (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35335394) |
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Date: February 5th, 2018 11:57 PM Author: Flirting stage cr and a good reason never to buy anything other than ETH (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35335406) |
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Date: February 6th, 2018 2:59 AM Author: provocative public bath when moon when binance
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Date: February 6th, 2018 8:27 AM Author: vivacious circlehead I understand completely ho bad the BTC pairs fucks the market. It's a bullshit system based on an outdated, low volume market that completely changed over the course of a few months.
Ideally every exchange would have at least the top 5-10 market caps coins all paired with each other and fiat.
But that's why this crash is necessary and I am not worried over the next 5 years. Assuming crypto isn't completely killed by this, which it won't be, something like this was necessary to force the exchanges hands and we will basically have a complete reset from Fairx, Robinhood, whatever others make change with an even higher baseline plus momentum/ public profile for good projects to really stand out on their own.
First half of 2018 may continue to suck but 2019-2022 will see multi trillion dollar market caps. |
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Date: February 6th, 2018 8:31 AM Author: laughsome roast beef MULTI-TRILLION! Because, why the fuck not? (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35336933) |
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Date: February 6th, 2018 8:33 AM Author: vivacious circlehead This most recent bull market was the test run. (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35336939) |
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Date: February 6th, 2018 8:35 AM Author: laughsome roast beef Test run for what? A speculation-based economy and the bankruptcy of south korea? (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35336944) |
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Date: February 6th, 2018 8:38 AM Author: vivacious circlehead basically yes. (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35336950) |
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Date: February 6th, 2018 9:05 AM Author: Flirting stage sounds cr (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35337060) |
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Date: February 6th, 2018 9:17 AM Author: Bronze dingle berry keepsake machete (http://www.autoadmit.com/thread.php?thread_id=3884461&forum_id=7#35337141) |