The cryptomarket has been drawing for several weeks in a row and that made some people saying very biased and ridiculous, to some extent, public statements that there is no future for all cryptoprojects and Ethereum in particular. Tone Vays, a bitcoin maximalist, and a Nobel economist Nouriel Roubini recently have taken a responsibility to claim that altcoins are shit, and the first person keeps on saying that Bitcoin only will remain as the king coin. Why are these statements a bunch of bullshit and why does it irritate me personally? I will explain in this video.
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This is an experimental rubric where I’m going to give my personal opinion to a major events and news in the crypto market happening during a week. There is no title for this rubric yet, so if you have a good name for it, leave your variant in the comments. My name is Roman Gorbunov aka Boogieman and today I want to give my opinion why Tone Vays’ and other economists’ opinion about altcoins is bullshit. You are watching What Da Hack show, let’s hack it up.
First of all let’s break down bitcoin maximalist mantra that Bitcoin will be the only coin in the market and see what is a possible scenario to let this happen. Bitcoin maximalists blindly believe in Bitcoin as the only cryptocurrency to remain in the market in the end of a day. They claim that Bitcoin tech, actually blockchain technology implemented through Bitcoin as a digital currency, which was invented 9 years ago and hardly being updated recently, by the way, will be enough to serve all possible use cases where blockchain can apply. Let’s do not criticize it for now, but accept it for granted just to play out the possible scenario.
Bitcoin blockchain, now I mean the distributed database, the tech, may serve as the premium layer, a common ledger which other technologies and applications will communicate to write down information about transactions into its blocks. Like internet connects our computers to let us communicate, send information to each other by typing characters or send commands to applications by clicking buttons, other words, to transact, Bitcoin blockchain will connect us, people, to let communicate between each other and use other applications and will store all these transactions. In such case Bitcoin blockchain will present a global super database storing all data about its users and nodes activity, hence transactions, preserving privacy and security, and I do not mention here anonymity.
So, in that way Bitcoin looks like a monopoly. As we know from economics, monopoly is bad for progress, first. And secondly, current specification of Bitcoin blockchain does not allow to perform such power and the current design covers only 0.01% of all possible use cases provided by blockchain as a decentralized and cryptographic technology.
Meanwhile, there are projects already existing in the market or being developed which outperform Bitcoin in its technical specification and power to cover the rest of 99.99% of use cases. And Ethereum is one of those. I do not want to promote any projects in this show and give any defencing arguments towards Ethereum in particular, we do objective fundamental analysis of digital assets in the another show, so you check our channel on Youtube, but I mention Ethereum as Tone Vays and nobel economist Nouriel Roubini went with attack on it specifically, as it is the second largest network accordingly to its capitalization and one of the most popular in the market. The nobel economist claims that 75% of applications build on top of Ethereum technology are ponzi schemes with no solid use cases and the rest 25% have no active user base. Along with that Tone Vayz claims that Ethereum will go close to zero in soon future.
So I’m honestly 100% sure that such statements are a total bullshit. I have personally spent over 1000 hours on researching and analyzing digital assets including Ethereum and projects build on top of Ethereum, which led me to design a unique methodology Z-method, applicable to objectively evaluate new digital assets such as cryptocurrencies, tokens and DAO (decentralized autonomous organizations). You can check more information about Z-Method on zet.fund/z-method.
One of the metrics included into Z-method covers such aspect as cryptonomics or a set economic rules and incentives of a network that drives value of a network and its native currency. I know it is hard to understand this concept with a few information given, especially if it is your first to time when you heard the word “cryptonomics”, so for better understanding I would recommend to compare it to a business model of a company or economic model of a company (read “network”) that is applied to generate revenue (read “gain value”). Initially Ethereum was designed as a decentralized supercomputer providing computing power on demand. The very basic use case for such computer is high fidelity graphics rendering in computer games. With such a powerful supercomputer gamers will no longer need to buy and keep large boxes with video cards and coolers, but they will be likely to have just a computer with connection to internet to rent computing power at a much lower cost.
So renting computing power is an already existing business model, but with blockchain technology, it will go even more popular as it will become cheaper and more affordable.
“Altcoins are done!” is another loud statement by Tone Vays. And I remind you, that Tone is a bitcoin maximalist and a fan of funny caps.
And here I have one word for him and it is “tokenization’. I will not go in details now with its tremendous concept, just would give a short review. Tokenization is about giving everything value, no matter if it is a commodity, product or even a human being. Everything can be tokenized, well, I roughly presume, everything. A very interesting example of tokenization is a unique token of an artist, singer or band. If you are from CIS region, you might have heard about Buzcoin, a project launched by a pop singer Olga Buzova, or you are better familiar with Akon who is building his Akoin. Consider a personal token of an artist as personal shares. Once a company goes public it issues shares and offers it for public trading, that’s IPO. With tokenization any human can issue tokens and go ICO, initial coin offering, or ITO, if you want, Initial token offering, in such case a token stands for a sort of credit that can be bought from this artist expecting this token monetary value will remain the same or will grow with time. Fascinating?! Me too.
So now I believe Tone Vayz and the Nobel economist are done. Altcoins are not.
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