Why Blockchain is a massive hype train that we’have never seen before ?

Why Even Ethereum is a shit coin !

There is tremendous amount of ‘Blockchain’ hype in the tech world today, every one from tech CEOs to global leaders routinely bash bitcoin and say the underlying technology ‘Blockchain’ will have tremendous use-cases in the future.

Every blockchain developer / Alt-coin promoters / investors believe in this hype ( including myself until recently), They all believe that blockchain and its dapps will change the world and want us to believe that they will make a lot of money to early investors.

If only you could invest in early Amazon of Blockchain

if only i was given 1 shit coin every time i heard from this from shitcoiners, i would be a bitcoin billionaire by now.

The missing point here is not every new technology / business model actually works in reality.

p.s any coin without long term fundamentals is considered a shitcoin !

The simple truth

However, building a sustainable business based on these dapps is an entirely different matter altogether.

One thing needs to be made clear, the valuation of blockchains like Ethereum / Matic / BSC essentially come from usage of dapps on them, i.e the idea is the tokens act as fuel/transfer fee to run the dapps over them.

These blockchain tokens are not supposed to Store-of-value like Bitcoin is.

Some blockchains BSC / EOS agree to the fact bitcoin is the store of value, and their tokens are simply fuel to run blockchain economy. However recently, ethereum is shifting its narrative to store-of-value as they are no longer able to compete with other chains on pure blockchain utility anymore due to the insane transfer costs.

Blockchain world vs Real world

In Blockchain world, all you need a shiny new blockchain dapp and development team to build a MVP and you can raise millions / billions.

Customer traction ?? we will worry about later.

Moat, Network effects ?? Too many questions already :)

The Moving Chain curse

Case in point : USDT and Aave

USDT stable coin by Tether is by the far the most popular / powerful dapp / token built on ethereum which arguably runs most crypto exchanges , many exchanges run only because of USDT. However this success became a curse for ethereum ( which they conveniently ignore and never talk in public ) , as soon the transfer fees shot-up , Tether decided to mint these tokens on cheaper chains too like Tron / Algorand /EOS etc.

Slowly but surely people started using Tron based USDT for low volume transactions intially and now even the high value ones ( coz no one wants to waste money duh ), so much so that the volume on TRON /USDT is now more than Eth/USDT.

Aave is a popular DeFi and Decentralised exchange which started its life ethereum and recently moved to matic ( as matic is compatible with ethereum ) due to low fees on matic chain.

This is the inevitable destiny of all blockchains, whenever a dapp gets reasonably popular and users rush to use it, fees shoot up forcing dapp developers to clone it to a cheaper chain, not to mention most of popular dapps like Aave are only catered to traders who do high risk margin trading / coin swapping are not used by average users who are much more loyal to a brand than traders.

Ever changing Narratives

Every one wants to build something shiny to get a bunch of scammy VCs to buy into and dump these tokens on average investors.

There is always only talk of fantastic world changing Use-cases.

There is no discussion about business plan in any of these white papers , Ever

None of these dapps / blockchains ever talk about addressable market or profit margins and always leave it to the imagination of investors.

These also conviently ignore competitve risks from other blockchains which is the existential reality.

PUMP&DUMP Rinse and Repeat

In a traditional stock-market market-place 99.9% of tokens will never get a chance to be listed owing to their utter immaturity in their business journey.

In the brave new world of decentralized money championed by Bitcoin, money flows freely from bitcoin to alt-coins without any regulation fueling massive pumps like Doge Coin ( which went up 100x in 2021 ).

This super power given by sathoshi to control your own money is a double edged sword which in the hands of greedy will be used in gambling / pump & dump scams unfortunately.

With Great Power comes great misuse

Public market funding/ IPO which is generally only available to thorough vetted and regulated companies is now available to every blockchain developer in any country.

This as you can expect opened up a can of worms with 100s of large whales ( blockchains VCs) dedicated to pumping and then dumping shit-coins on general public.

what about quick 10x returns ??

Newbies are not happy to get simple returns with long term holding of bitcoin, they want 10x returning alt-coins and 100x leverage which can wipe their entire savings in one shot.

Coz human nature is greey and predictable, there is massive market / exchanges / casinos build to cater to this exact weakness.

Market winner vs Market Wannabe

All the other alt-coins aim to create decentralised versions of uber / twitter / github / whatever never worrying about real world customer traction. For this reason these can only be classified as market wannabes.

So the main point to note is by shifting your pedal from Bitcoin to Any other alt-coin you are taking on 100 times more risk unknowingly to the point that alt-coin investment can only be considered gambling.



BItcoin enthusiast

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