Fight For Sound Money And Bitcoin Cash

It takes insiders from Wall Street to know why the latest crypto dump occurred?

BTC is part of Wall Street’s money-making speculative machine and tied to macroeconomic indicators. The FED previously warned about rising interest rates and the reduction of massive money printing as it created unwanted inflation, which for December 2021, reached 7% in the US.

The FED decides, and the rest of the central banks follow a similar approach. Inflation in the EU will probably reach 7% too a month later, and the European Union will also proceed with increasing interest rates as a method to curb inflation and the risks it surrounds.

Wall Street and the top funds withdraw from high-risk investments as interests rise. Bitcoin (BTC) is one of these assets, regulated with ETFs and offered as high-risk exposure to institutions and accredited investors.

However, BTC is not a currency, no “sound money”, and not a “store of value”.

BTC is not a Currency

Supposedly as inflation was rising Bitcoin (BTC) would also gain more investors, enjoy increased volumes, and as a consequence price would go up more. The message all this time was Bitcoin (BTC) is a hedge on inflation, store of value, digital gold.

Yet, this didn't happen either. The 7% US inflation announcement, seemed to be a "sell the news" moment for part of the Wall Street funds that speculate on BTC.

Instead of rising, BTC dipped.

In an interview with a bunch of BTC maxis, Marc Cuban explained perfectly that Bitcoin (BTC) had absolutely no other use case rather than speculation. Gold, still has a use case, in jewelry. It used to be backing currencies, and still is in a non-significant way, though.

Gold is losing its appeal as technology progresses. It is an asset some funds still think has a purpose, but it doesn't. Adjusting technology to gold without any other useful feature for the progress of the human race is backward thinking.

Gold doesn't move the world, cash does. Until lately we only had fiat

Bitcoin (BTC) is mere speculation and narratives that support and enhance its image. It is a vast network of social media influencers, bots, and paid advocates.

In the past, some important and popular individuals spoke in favor of Bitcoin.

Such as Bill Gates and Chamath Palihapitiya.

Yet, Chamath doesn't have a clue how Bitcoin works, he clearly expressed it in past interviews. He just shilled his Bitcoin investment and never really cared for the technical aspect of the scaling issues as they were represented in 2015. It was just speculation for Chamath and rightfully so since Bitcoin (BTC) ended stagnating in developments and stripped out of its currency features.

Microsoft had also previously removed Bitcoin (BTC) as a payment method once fees started rising and reached $50 in 2017. Bitcoin failed in 2017 and failed again in 2021. It is not a means of exchange, and the armada of BTC maximalists has also abandoned this narrative.

Lightning Network

Was the feature of BTC as a currency abandoned completely, though?

LN was supposed to be a layer-2 that would bring lightning-fast transactions for no cost. However, LN was a failure since its inception.

Blockchain

Blockchain is a revolutionary, immutable database disrupting the finance industry with a potential to provide payments in a secure environment, unhindered by intermediaries.

Source: ResearchGate

Lightning Network

A payment channel is required for two entities to conduct payment transfers, the creation of which incurs high fee.

However, Lightning Network also facilitates payment transfers through an intermediary in the network, who has payment channels with the two entities. This feature is extended by incorporating multiple intermediaries in the network to conduct a payment transfer from one entity to another leading to a web of payment channels. The intermediary charges a very low fee for providing the payment channel (Table 1).

Source: ResearchGate

The structure of the Lightning Network favors the creation of intermediary hubs since this approach counters the fees required during the process of opening/closing LN channels. Most wallets in LN are custodial and centralized with mandatory KYC/AML features. (Source)

With the lightning network, users exchange their BTC for an IOU. The bridges require opening and closing fees, which are actual blockchain fees (blockchain transactions).

At times of congestion of the mainchain, Lightning also becomes unusable in this approach, so the solution is centralization.

Centralized hubs offer the use of LN through government-regulated and KYC-enforced services. This is Chivo, Strike, and most Lightning wallets.

Source: Twitter

We are on our screens watching today the LN experiment failing massively in El Salvador.

The 2020-2021 Market Manipulation

All this introduction was necessary since BTC is (still) in a leading position in the crypto industry with a share of about 40%.

The rise of stable coins (USDT, USDC) in market cap clouded the dominance indicator, though.

BTC is algorithmically sustained at its position as a market leader. This is Wall Street manipulation, keeping it at the top. Similarly, we watched during 2021 centralized networks reach the top of the rankings with extreme valuations.

It started with BSC (backed by Binance), Polkadot, Cardano, and Chainlink (VC backed and strongly supported by brand firms).

Followed by a swarm of networks often even struggling to stay online as Polygon, Solana, Terra Luna, Avalanche, Atom, Fantom, and various more.

The VCs funded massively any project just for having a convention in the US between 2020-2021. Thus, all these tokens reached sky-high prices and kept advertising aggressively via all available channels (YouTube, Twitter influencers, forums, etc.).

Some analysts attribute to Elon Musk the revival of the bull run in January 2021, and it was a realistic analysis. Tesla was big news not just for BTC, but also an “underDog” of crypto.

Musk selected Dogecoin as his favorite coin of payments and even integrated it for payments of Tesla merchandise recently.

This created a series of meme coins that started exploding in price and numbers of investors. Shiba Inu is the most advertised one, that reached the top-10 of cryptocurrencies according to market cap.

Meme coins with limited purpose, or entertainment value, kept appearing and flooded the market.

It was yet another distraction from the valuable blockchain and the purpose of cryptocurrency to be used as money.

Cryptocurrencies presenting currency features and offering high speeds in a cost-efficient approach for the user were not considered a priority by investors.

Examples:

• Bitcoin Cash

• Dash

• ZCash

• Monero

• Ripple - XRP

• Stellar

• Litecoin

These are just a few examples of cryptocurrencies offering currency features, each one with some differences in their approach. Yet, some of these cryptocurrencies have a vast userbase and kept developing all this time (i.e. Bitcoin Cash).

Others had been stagnant having issues with the SEC (XRP), or their anonymization features were a red flag for investors (Monero, ZCash).

Bitcoin Cash has the second-highest hashrate after BTC, but the security and stability of the networks didn’t seem to be the focus of investors this time. It was mostly about speculating and targeting centralized startup networks in smart-contract networks.

However, all the previous examples in centralized blockchains are complete failures. Perhaps the example of the IBM blockchain didn’t seem to have reached the ears of the current investors that kept “pumping” networks even after they were shut down after possible DDoS attacks (Solana, Polygon).

In Conclusion: Fight For Sound Money

The modern BTC whales decided to reduce their exposure in Bitcoin (BTC), followed by the algorithmic bot-trading that sustains the price of BTC against the rest of cryptocurrencies.

The actual "sound money" in crypto was suppressed during this "cycle". Wall Street idolizes the dollar and currently supports BTC since, under Blockstream, it doesn't constitute a threat to the dollar hegemony.

Bitcoin Cash, Monero, ZCash, Dash, and more networks, did not attract the attention of the investors. The institutional bull run didn't proceed with a retail one. The number of investors increased and reaches about a hundred million worldwide, however, most networks didn't attract actual users (once again).

Bitcoin Cash for example increased its userbase throughout 2021 and lately, with smartBCH it added a stable, secure, and decentralized smart contracts sidechain to its artillery.

Sadly there is a lot of misinformation spread by those that want to offload their BTC bags or think it is all about the price, and can't process the developments that are rapidly bypassing BTC. The future is digital and needs fast processing high throughput and capacity.

Bitcoin Cash has the best chances to succeed as a payment method in the rapidly growing digital economy.

It will be either Bitcoin Cash or CBDCs. I hope the crypto community understands where it faulted before and what exactly is supporting so far.

• Cover Photo: by LeeRosario on Pixabay (modified)

DISCLAIMER: All material published in this content, is used for entertainment and educational purposes and falls within the guidelines of fair use. No copyright infringement intended.

If you are, or represent, the copyright owner of material used in this article, and have an issue with the use of said material, please send an email.

No financial advice intended.

Follow me on: ● ReadCash ● NoiseCash  ● Medium ● Hive ● Steemit   ●Vocal ● Minds ● Twitter ● LinkedIn ●Reddit ● email

Don't forget to Subscribe and Like if you enjoyed this article!