Sweet Lord I am going to do my best not to insult anybody in this article.
But seriously, why are retail investors so careless sometimes?
Let me say this now, so in case you're new to crypto and you stumble onto this post, maybe I can save you some headache down the road.
If you get your news from Barron's, Squakbox, or Business Insider, leave crypto immediately.
I would say I don't mean to sound mean, or offensive, but I do, and am.
Why? because if you're relying on these media outlets as your sources of making "informed" decisions, personally, I don't want your money or influence being apart of the crypto-verse.
I was speaking to someone in an Uber the day other, and they were talking about how they got burned when they tried to send crypto. I asked, if they could clarify, and they replied "oh I hit send, and it's been days since, and I lost it. oh well, I'm never touching it again."
Turns out, after I dug into the matter to help them, the initiated as TX on eth network with a gas fee of 64 gwei, and network fees tripled since. Then they tried to do the same TX 3 times over, and finally, they tried to speed up the 3rd TX. This created a nonce count of 4. So obviously, until the first TX goes through, you can't speed up the last one..... but this did not stop said person from FUDing all over social media about how crypto screwed them over.
So, before I go into what happened with crypto this week, for the love of Gd, if you do not understand crypto, steer clear of on chain transactions and just buy and sell the fucking things on your playful exchanges.
Now, while everybody was busy pointing fingers over the past couple of days about what drove down the value of cryptos, did a single person look into the hashrate for BTC mining difficulty?
For the uninitiated, the hashrate is the total computing power it takes to mint new blocks and thus, be rewarded new BTC. Or simply put, the mining difficulty. And for the even more uninitiated into tech period, when we talk about traditional internet services companies like google or amazon or facebook, we are talking about thousands upon thousands of computers in an underground warehouse somewhere, generating, collecting, and probably selling DATA. That's all the internet is, data moving across various clusters of computers underground somewhere. Well, the only difference between the blockchain, and regular internet servers are physical locations. The blockchain lives among many individual servers or clusters of clusters of computers all over the world. That is why miners turn on their computers and support the network. To get rewarded in BTC for supplying the computational power to keep the network up and running.
Now, I've heard that China was the one who banned BTC? When you realize that Ant miners and AntMain pool (world's largest producers of ASCI miners) have the most hash power, and the most mining computers on the planet (please read my previous articles about decentralization being a myth thanks to big tech and institutional money flowing into cryptos), and then you simply pull up a chart of Bitcoin mining difficulty over the last few days. it should tell you everything there is to know.
In all honesty, whoever based their decision on Chinese retail not being able to trade is in my opinion, a full blown mentally handicapped individual. And I'm putting this lightly...
Just like how google, apple, amazon, all have electricity bills to pay for having servers and data centers, so do miners. Even at very low rates, or even free, the equipment is not. The labor is not. We are talking millions up millions if not billions in infrastructure, building, labor, etc to set up a good mining operation that is barely profitable only when BTC appreciates in value, otherwise you're operating at a loss. Why THE FUCK, would the mining rate stay constant or near constant if the biggest miners (who also happen to be Chinese) on the planet believed BTC is going to drop?
Do you hear that logic?! It's insane.
here is the yearly hasrate difficulty chart
And here is the hashrate difficulty for May
The yearly charts shows a 71% increase in mining difficulty over the past year.
The monthly charts shows a ~12% decrease in the mining difficulty for the beginning on May 2021. 12%. and if you look at the end, now its even harder to mine bitcoin.
So, if people are abandoning bitcoin, "institutional money" is done with crypto, retail is done, why are these miners running even more machines to mine more bitcoin? This is especially true of our dearly beloved Chinese miners, who won't be able to sell the bitcoin they mined to pay the bills?
Something is off. And it's not some Chinese official[s] farting in the wind about what COULD happen.
I'm not going to theorize about what I believe really happened, but what I do know beyond a reasonable doubt is panic kicked in. Retail investors got burnt to a crisp. Those who didn't know nature of cryptos and sold, lost their chance of ever actually owning anything remotely of value in the future.
And we can only guess who bought the dip.
Ladies and gentlemen, I am pleading with my fellow cryptonauts to soon to be crypto owners to use your brains. Do not become a maximalist of any protocol or project. Do not allow some billionaire, who does or doesn't tweet, about their views sway your decisions. Think for yourselves, what is value? is providing data of value? is moving data of value? Is the speed of the data the value? I mean the bare bones of what drives value, and make your choices accordingly.
But reading articles titled "Insania, the pied pipers of cryptocurrency are leading investors to their doom" (it hit my news feed this morning) and actually giving that tool-bag of an author the time of day, that's what you're going to regret.
Learn crypto, use crypto, screw up crypto, research crypto, then make your choice. But leave governments, corporations, retail investors, and hack job reporters out of your equation when you're deciding on selling or buying. Do it because you, either love the project, or hate it. Ie- I loathe ETH. Networks fees suck, community? sucks. Protocol? really sucks? Privacy? sucks major. There is not one thing I like about eth, even if its price keeps climbing. And I'd bet my bottom dollar if EIP-1559 to ETH 2.0 doesn't bring down network fees to the realm of retail, ETH's days are numbered. But i digress. You get my point.
To really hammer this point into my reader's minds, and maybe some old school traditional investors or professionals with financial backgrounds, let me bring up one of their heros. Warren Buffet. When they covered his decision as to why he invested in Apple, he said "well I don't really understand apple, but then one day I went to the dinner, and all my children and grandchildren were on their iphones. The family in the next booth ,were also on their iphones, the waitress, and even the chef was peeking at their iphones. When we drove home, our driver was checking his iphone during his break, as I looked around, I started to realize if I could find anyone who DID NOT have a iphone, and that's when I realized, Apple was a good buy."
This is one of YOUR (traditional finance) people saying the same thing I'm saying. The tech speaks for itself. Good tech leads to adoption, bad tech fades away (anybody remember Microsoft Zune? or Amazon Fire phones?) So the next time you sell your hard earned sats to some suit in an office laughing cause he tricked you into selling at a discount, ask yourself, who doesn't have some crypto right now?
you're tool writing author,
O.G.F.
As always : THIS IS NOT INVESTING ADVICE. DO YOUR OWN DUE DILIGENCE AND RESEARCH. THIS IS JUST ME SHARING MY STORIES AND views / news updates.
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Alphanova.crypto
Above is the .crypto address for anyone who wants to shoot me some cheddar for my thoughts. Please no BTC or ETH. Network fees are killer. Stick to LTC, XRP, ADA, or TRX. The last 3 are almost free in terms of network fees.
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