One of the biggest problems with Bitcoin is the distribution method. This is something that I noticed a few years ago. When looking at the changes that are going to take place going forward, we will have to see a new model in distribution. I believe many blockchains offer this yet Bitcoin is not one of them.
This, coupled with the fact there are a limited number of Bitcoin, means that it will be an asset for the elite. Those who acquire Bitcoin are the ones who have the means to purchase it. This falls right into the sweet spot for those with money.
Of course, anyone who is holding Bitcoin now is likely in excellent position to benefit going forward. Eventually, the price will be run up by Wall Street.
Jon Najarian basically confirmed this idea in a podcast. He is a typical Wall Street trader as well as being a commentator on CNBC. He runs a fund where he manages money for people. For a number of years, he traded digital assets, mostly Bitcoin. That said, he is not the only one to take notice of what is happening.
According to Jon Najarian, big investors from Wall Street are quietly accumulating BTC without revealing this fact to prevent the price going up since they want to thoroughly expand their BTC position.
This should come as no surprise to anyone. We knew that Wall Street was lurking and would spring when the time is right. While this will help prices, it is vital to note that it carries a much different mindset than those who were the forerunners in crypto.
As per him, the crypto industry has only started to develop and is way behind gold and stocks in this respect.
Wall Street is not interested in solving problems. Instead, it focuses exclusively on ROI. The above quite epitomizes how it thinks about things. Comparing Bitcoin to gold and stocks shows how it is viewed simply as an asset that will move up in value. Nothing is said about it being a currency and used for transactions. Certainly, people do not buy stocks with the intention of using that as a means to transfer value. The same is true for gold.
It is speculation, pure and simple. This is what Wall Street excels at and what Bitcoin will end up being. For years I felt that Bitcoin could replace gold as the store of value yet found the positioning of it as a big part of the Web 3.0 transition a bit much. Most of the development on Bitcoin is with the intention of making it a more effective value transfer system. In my mind, this is not forging the path into Web 3.0.
People such as Jack Dorsey tell the entire story. While he proclaims that Bitcoin will be Internet money, he is buying $10,000 a day worth of BTC. Over the course of a year, that one individual is accumulating roughly 350 Bitcoin. At the same time, according to reports, GBTC is acquiring more Bitcoin on a monthly basis than is mined. What is going to happen once other funds are approved by the SEC?
My point is how is any of this going to get in the hands of individuals? Ultimately, scarcity will drive the price up, putting it further out of reach of the average person. Sure, just like gold, the man or woman on Main Street might be able to afford a few hundred satoshi here and there. However, like Wall Street, those people will be looking for it to go up in value.
To me, this eliminates the view that it will end up being used as money. Just like gold, a market I feel Bitcoin will eclipse in size, is held as opposed to used for value exchange, BTC will fall under the same spell.
In other words, the fact that it is viewed as financial in nature means it will remain there.
Contrast that with a blockchain like Hive. Ultimately, it is my view, the value of HIVE will come from the utility it presents. This means the ability to interact on the blockchain (Resource Credits) and being the pair for all the other tokens created on the platform (H-E and hopefully SMTs). For massive appreciation, it will come down to the number of users and the network effect. The likelihood of big money players such as those on Wall Street amassing a ton of HIVE is almost nil.
This means that HIVE's value is going to depend upon the development and businesses built. The fact there is a distribution mechanism, not only for HIVE but other tokens created on here, means that it is accessible to anyone with an Internet connection. Over time, if large numbers of users are interacting on the different Hive-based applications, it will be harder to acquire HIVE. That said, the fact that many applications have their own tokens keeps the process going. As those platforms grow, the value attributed to those tokens should increase.
As we move towards greater decentralization, especially in the digital realm, the idea of a single currency makes even less sense. Couple that with the idea of scarcity and things simply do not align. The virtual economies that are going to be created are basically unlimited. This is going to require a similar attribute for currency.
For a number of years I wrote about the fact that I foresee a future with tens of millions of cryptocurrencies. They will be hidden in every nook in the virtual world. Transfer of value will occur all over the place, using tokens native to that community. Many might see only a few users while others could see hundreds of millions.
The key is to get value in people's hands. It is a process where accumulation of tokens generates wealth. Naturally, we all want to see overnight "mooning" yet the more stable path is consistent growth in the number of tokens held. Many will end up being nothing but a handful will find large use cases.
People are in a much different position if they are being rewarded in 25-50 different tokens on a monthly basis. We Web 3.0 rolls out, we should see the number of applications rewarding people expand. This should really take off when the process is automated and people are rewarded for data that is automatically generated by their devices.
In the end, money is a tool for collaboration. When Wall Street enters the picture, the collaboration ends and the scarcity is leveraged to increase the return. This is how it maintains control.
As we move towards greater technological need and development, I believe crypto will be the tool to fund it. There is simply going to be too much money required to keep moving us up the technological chain.
And this is how average people will get involved in the opportunities that present themselves.
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