WTF, cryptocurrency?. Some Harsh Truths: Why Cryptocurrencies… | Sovereign Crypto's | Coins | April 2024
Some harsh truths: Why cryptocurrencies are an autistic playground for forward-thinking degenerates, and why we could all get rich by carefully following along.
Look, if it isn't clear from the title, 90% of people reading this will be offended.. If you're a sensitive young lady and the thought of harsh language and harsh truths makes you feel sick to your stomach, get out there ASAP. On the other hand, this article is an important commentary on the absurd state of cryptocurrencies and a reality check that will be a valuable perspective for those looking to profit from this bull market.
Profiting from the revolutionary technology that is cryptocurrency requires acknowledging harsh truths in the same way we call fiat ponzis for what they are. If you invest based on comfortably incorrect assumptions, you will profit in the same way as a gambler who thinks the odds on a slot machine are not against him.
These harsh truths are not meant to condemn. Cryptocurrency is undoubtedly your best opportunity to become independently rich and escape the competition. There are still no gatekeepers, no ridiculous regulations to “protect investors” (except in the US), few privileged actors, and no real opportunity to make money proportional to your risk appetite and knowledge, regardless of connections and status. doesn't exist. The door is still wide open but closed.
Instead of, Consider these harsh truth warning signs to help guide you through the forest of BS and into the land of life-changing wealth.. Only those who can honestly admit the shortcomings of cryptocurrency can successfully navigate the noise and nonsense that acts like a fog of war and avoid being lured into the land of Rekt.
#1 – Fully diluted value (FDV) is pure meme.
Tokens have no FDV value and that value cannot actually be extracted.. DogWifHat has a market capitalization of approximately $900 million and an FDV of $2.5 billion. In the most liquid markets (Binance), selling just $500,000 would cause the price to fall by more than 2%. Every 2% decline beyond that requires less capital. That said, unless there are more buyers, we could optimistically extract $50-$100M from this system before it goes to zero, which is less than 4% of FDV.
#2-95% of projects do not require tokens.
Video games can use ETH or USDC as well as their own tokens. Lending and borrowing can occur in DeFi protocols even without tokens. Tokens are typically used to raise cash to fund development and build communities at the expense of investors. This means that during periods within the cycle, you can make a lot of money speculating on those coins. Don't fool yourself into believing that most products have long-term value.
#3 — Influencers are the hardest people to get advice from.
Most influential people are as trustworthy as your injury attorney at the scene of the accident. Even for the trusted few, by the time you get the information and alpha, you're already behind and chasing the pump.
Instead, use influencers as great sources of information. Of course, you need to remove 75% of the noise from your content, but that 25% can prove to be very valuable if you know what to look for.
#4 — Leverage and TA (Technical Analysis) are for experts. Don't touch it!
97% of traders lose money. You can very well do the 3% that makes money, but unless it's your full-time job, take faith and hold on to it during the bull market. TA is astrology for cryptocurrencies, and only professional, full-time traders utilize TA profitably. Using leverage can ruin you, and no matter how good of a buy you make, you can end up losing money. Resist the urge.
#5 – Governance and staking are not utilities.
Cryptocurrency governance is like voting on when the sun will rise. It feels good, but nothing changes. Staking is the redistribution of token value from non-stakers to those who stake.
#6 – Airdrops are old donuts coated like delicious gourmet pastries.
Don't waste your time on airdrops. Use interesting, value-providing protocols and become eligible as you build your portfolio. There are industrialized teams farming every airdrop, and the cuts will be worse than if you worked those hours at a minimum wage job.
#7 – $50 – $1M wallets are all BS.
Maybe there's someone out there who got lucky and forgot they had $50 in $PEPE and accidentally ended up with $1 million. 99% of people would chase pumps and sell dumps and not make a dime.
#8 — Decentralization is a Meme (except ETH and BTC).
Of course, decentralization is a spectrum. The reality is that no one really cares and most protocols are not decentralized. It's more of a buzzword than anything else. A protocol does not need to be decentralized to make you money.
#9 — Runes and BRC20 are fun, but their “skills” are poor.
BRC20, RUNES and Ordinals… These are all fun ways to use Bitcoin as a meme, but they are three steps behind EVM NFTs in terms of technology. They have to be read from special wallets, are easy to lose, cannot be programmed, must be traded through centralized entities, and are generally worse in almost every way. The only added value is that the data from the initial inscription is actually stored on chain (ETH and other EVMs can do this anyway).
In fact, the BRC20 protocol is ironically launching tokens on BSC and other EVM chains to allow for DEX trading.
#10 — Real-world assets are not connected to the chain.
The only thing an RWA asset on chain represents is a claim to an actual physical asset, and this needs to be enforced and enacted in the trading world anyway. Of course, digital assets like bonds, Treasury bills, and other assets are much better served on chain, but physical assets on chain are just another form of re-collateralization. The weak point always remains the bridge from onchain to tradefi.
#11 — Maxis is toxic and has a low IQ (ignore it)
Anyone who presents themselves as a maximalist of any kind should be completely ignored. Their opinions are tainted by cognitive dissonance and an inability to think beyond a religious team mentality. Ironically, that same mindset would have kept them out of cryptocurrencies altogether. Every chain has strengths and weaknesses, and the more of them the better.
#12 —Be a contrarian
Crypto Twitter is a bipolar manic mess of extremely emotional villains. Every 1% drop is the end of a cryptocurrency, and every 1% rise is the beginning of a supercycle. When the Twitter troll yells the loudest, do the opposite.