Sentiment Flippening: Why This Bitcoin Expert Doesn’t Own Ethereum
We at Bitcoinist covered the lack of decentralization of the Binance Smart Chain. And, at the moment, the BSC is Ethereum’s main competition. That sparks a question, inquiring minds want to know: how decentralized is Ethereum? Not enough, according to author, investor, YouTube star, and Bitcoin expert Preston Pysh. In a recent Twitter thread explaining […]
We at Bitcoinist covered the lack of decentralization of the Binance Smart Chain. And, at the moment, the BSC is Ethereum’s main competition. That sparks a question, inquiring minds want to know: how decentralized is Ethereum? Not enough, according to author, investor, YouTube star, and Bitcoin expert Preston Pysh.
In a recent Twitter thread explaining why he doesn’t own ETH, Pysh started with: “First, I don’t trust the decentralization of the ETH protocol.” It’s no secret that Ethereum’s creator Vitálik Buterin and a few key developers have almost complete control over the project, but, is that the only thing that makes Ethereum a semi-centralized affair? Not according to Pysh.
The author says that the process for running an Ethereum node is “not straightforward,” and that the project’s community often says that a “full node is a “spectrum,” of decentralization.” And then proceeds to describe how in November of last year the node operator Infura went down and exchanges had to temporarily stop processing Ethereum-related transactions.
Then, Pysh goes for the jugular. According to him, the Proof-of-Stake consensus mechanism that Ethereum 2.0 is planning to use, “is just like the existing fiat system.” He explains this further, “If you have a bunch of money, you stake those positions and then you have more influence over the incentives of the overall protocol.”
That’s the main argument against all the newer blockchains that reject the Proof-of-Work model that Bitcoin uses. The system they came up with, PoS, clearly favors the rich and powerful and creates “gatekeepers and kingmakers.”
Preston do you own any ETH? No. Here’s why. A Thread.
First, I don’t trust the decentralization of the ETH protocol. In the past, ETH has been governed by the direction of a few key influencers. If you haven’t discovered yet, the essence of this entire movement is removing 1/
You can say whatever you want about Decentralized Finance (DeFi) and the NFT craze, but the fact of the matter is that most of those experiments are happening on the Ethereum blockchain. And experimentation is good for the crypto ecosystem. It keeps it exciting and it can spark the next big thing.
What does Pysh say about this? That DeFi is also happening on the Bitcoin blockchain. As an example, he uses, “Hodl-Hodl is a platform that enables P2P lending & borrowing and it doesn’t have a native token.”
This might be Pysh’s weakest point, but he brings reinforcement by quoting Lyn Alden’s “An Economic Analysis of Ethereum” essay. In that piece, she’s brutal. She qualifies the whole Ethereum DeFi space as:
A big operating system powered by crypto tokens, for the purpose of moving around… crypto tokens.
A healthy banking system in the real world would consist of people depositing money, and the banks making various loans for mortgages and for business financing, to generate real-world utility.
Plus, the competition in the smart contracts space is tremendous. To illustrate that, Pysh lets “one of the greatest investors of all time” speak:
“It’s going to be very hard to unseat #bitcoin as a store of value asset,” says Stanley Druckenmiller #btc. “Yahoo invented the search engine … We all know what happened with Google versus Yahoo.” pic.twitter.com/IwnlEp9wpw
Yeah, but, what about the rise in Ethereum’s price?
The facts are the facts: Ethereum’s bull run continues and Bitcoin’s price has been consolidating for months now. To explain this, Pysh recommends to, “go back and look at what happened during the summer of 2017. This was analogous in the previous Bitcoin bull market to what we are seeing right now.”
At that time also, during Bitcoin’s consolidation period, “ETH aggressively outperformed BTC.” And he means it. The relationship between Ether and Bitcoin has never been so skewed towards the former, not even now. In fact, as the charts show, it’s not even close.
Will it happen again, like last cycle? I have no clue. Here’s what the chart looks like over the last 2 cycles (ETH measured in BTC). But, having lived that previous cycle as a BTC investor, it sure feels the same (alts pumping while BTC went sideways at the mid-cycle). 15/ pic.twitter.com/wOgRrulGyL
The author admits he’s biased towards Bitcoin, and that he can’t see the future and wouldn’t know what it holds for Ethereum. Regardless, Pysh thinks that Bitcoin is a better solution for the problem at hand, “Sound, censorship-resistant money, w/ timeless decentralization.” And that with a, “100 trillion + bond market that’s already priced to collapse,” a massive influx of money is coming to Bitcoin. It’s not coming to Ethereum, because it’s “controlled by tech gatekeepers.”
He finishes with well-wishes and an invitation, “I highly encourage you to think for yourself and invest YOUR money the way YOU see fit. Happy investing.”
DGB Technical Analysis: Support Levels of $0.0489, $0.0468, and $0.0441 Will be Tested
DGB price has tested and fallen below the 23.6% FIB retracement level of $0.0503. It may soon fall below the FIB retracement level of $0.488. Thereafter, we have to wait and watch if the price retests and breaks out of these levels.
DigiByte is an open-source blockchain creation platform. It was started in 2014 on the nodes of bitcoin. It was originally built to improve security, capacity, and transaction speed than blockchain. Also, DGB uses five separate algorithms to maintain privacy and prevent miners from getting too much power. The following DBG technical analysis will predict the price trends for the next few days:
On June 12, 2021, DGB opened at $0.06. On June 18, 2021, DGB closed at $0.05. Thus, in the past week, the DGB price has decreased by approximately 16.28%. In the last 24 hours, DGB has traded between $0.483 – $0.548.
The MACD and signal lines are in the negative zone. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, the DGB price may decline further.
Currently, the RSI indicator is at 34%. It faced rejection at 52.84% and has fallen straight to this level. Thus, it indicates that the selling pressure is high in the market. We have to wait and watch if buying pressures become strong enough to bring about a bearish trend reversal.
The OBV indicator is downward sloping. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the DGB price.
In short, when we look at all three oscillators, we can say that the price may continue to fall. However, we cannot rule out the possibility of a trend reversal.
Currently, the price is below the second Fibonacci pivot point of $0.0503. If the bears remain strong till day end, then the price is likely to fall below the first, second, and third support levels of $0.0489, $0.0468, and $0.0441, respectively.
The price has tested and fallen below the 23.6% FIB retracement level of $0.0503. It may soon fall below the FIB retracement level of $0.488. Thereafter, we have to wait and watch if the price retests and breaks out of these levels.
People in the UK are more interested in Bitcoin and crypto today than in any other year, including 2017, when the digital asset boom was at its peak.
According to a UK’s Financial Conduct Authority survey, about 78% of adults have now heard of cryptocurrencies, and more than 2.3 million people in the UK hold or have owned cryptocurrencies at some point.
Crypto is a Serious Investment
The way British people think about crypto has changed dramatically. The FCA mentions that investors no longer see cryptocurrencies as a gamble but rather a serious investment or alternative to traditional investments. The gambling option dropped 9% to 38% in popularity.
Also, people are more aware of fluctuations. The number of investors who check their balances daily increased to 29% – more than double from 13% in 2020.
The British are long-term bullish. The survey revealed that about half of cryptocurrency hodlers plan to increase their exposure trusting that “they’ll make money at some point.” However, in the face of all the new options to invest, the FCA warns that the “overall understanding of cryptocurrency has declined.”
This figure represents an increase in the number of hodlers compared to 1.9 million last year. The FCA data is also consistent with an apparent rise in searches for information related to cryptocurrencies in the country.
Although interest in the keyword “Cryptocurrency” has dropped considerably over the past two weeks, searches for this term reached an all-time high in May, and interest is well above that of 2020 and previous years.
The FCA also found an increase in the average investment, which went from £260 to £300 in one year. That is, in theory, about $1 trillion is in the portfolios of small retail investors in Britain – leaving aside institutional investors.
One thing that remains the same is the typical profile of the cryptocurrency investor: Almost 70% of the respondants were male millennials of around 35 years old.
Bitcoin is Still The King
Bitcoin remains the favorite cryptocurrency investment for Brits, up 3% from last year. Some 66% of respondents said they held Bitcoin, compared to 35% for Ethereum, 21% for Litecoin, 18% for XRP, and 15% for Bitcoin Cash.
The FCA has been closely following the topic of cryptocurrencies for several years now. In the study, the FCA concludes that this increased interest in digital assets has been strongly influenced by the price volatility and the bullish behavior of Bitcoin over the years. Something that the rest of the cryptocurrencies tend to replicate.
Since 2020, interest in cryptoassets has reached beyond retail consumers, as institutional investors and traditional financial services firms have shown an increased appetite for engaging in the market. (…) This rise is reflected in other cryptoassets. We think this recent momentum influenced consumer responses to our research questions.
But the interest of the FCA goes beyond retail investors. The agency is also studying many aspects related to the impact and potential of CBDCs. It is also involved in the supervision of endeavors oriented to prevent and combat money laundering and terrorism and is also one of the most important public agencies involved in providing guidance to small and institutional investors that get involved with crypto.
SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
The Canadian Elite Basketball League(CEBL) is hopping on the crypto train. In a recent announcement, the league has revealed that going forward its players will have the option to be paid in Bitcoin. The decision will make CEBL the first North American professional sports league to adopt Bitcoin for salary payments.
Canadian Elite Basketball League Partners With Bitbuy to Offer Bitcoin Salaries
The latest decision from the league follows reports of its partnership with Bitbuy, one of Canada’s leading crypto trading platforms. With assistance from Bitbuy, the league will have the facility to compensate a portion of its player salaries in Bitcoin.
While CEBL is a relatively smaller league with only six teams competing in the upcoming third season, the importance of its decision cannot be undermined. Players opting for the offer will be paid a part of their salary in Bitcoin using Bitbuy to convert the amount from Canadian dollars.
Charlie Aikenhead, vice president at Bitbuy, indicated that his company is excited about the relationship with CEBL and said “We’re proud to support homegrown Canadian sports, and to partner with the league on this first to the market initiative.” Aikenhead also highlighted that Bitbuy wants to enable athletes to secure their long-term investments through cryptocurrencies.
Meanwhile, the CEO and Commissioner of CEBL, Mike Morreale stated that “Our partnership with Bitbuy speaks to our commitment to players, and also to our forward-thinking approach to how we go about our business.” He also claimed that the league is home to some of the best players who chose CEBL over NBA for its player-first approach.
More Professional Athletes Want to Be Compensated in BTC
For its part, the CEBL credits its players for adopting crypto payments for salaries. And the league’s members aren’t the only athletes asking to be paid in BTC. The sports world has seen an increased number of professionals demanding a portion, or their entire salaries in Bitcoin. For instance, Russell Okung, a professional NFL player made headlines when he became the first North American Sports personality to receive half of his contract salary in the primary cryptocurrency.
Kimbal Mackenzie, a point guard in CEBL’s Guelph Nighthawks and winner of the 2020 Sportsmanship Award, is enthusiastic about the league’s decision and is set to participate in the first group of players opting for the BTC program. “The ability to have part of my salary go directly into an investment that I believe will appreciate greatly over the next 10-30 years is a no-brainer,” he remarked.
KSM Technical Analysis: Expect Price to Fall Below the First Fibonacci Pivot Support Level of $259.69
KSM price has tested and fallen below 23.6% FIB retracement level of $325.13. If the price falls below the FIB extension level of $259.69 in some time, this implies that the price downtrend is strong. In that case, the price downswing is likely to continue tomorrow as well.
Kusama (KSM) offers an interoperable and scalable platform to blockchain developers. Developers use Kusama, to design and develop blockchain applications. Kusama is designed to provide a testbed to the developers trying to innovate with blockchain technology. The KSM technical analysis is as follows:
On June 12, 2021, KSM started trading at $416. As of June 18, 2021, the closing price of KSM was $313.34. Thus, in the past week, the KSM price has decreased by roughly 24%. In the last 24 hours, KSM has traded between $300 – $341.
The MACD and signal lines are negative. Plus, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish, and we can expect a price pullback.
The OBV indicator is gradually falling. Thus, selling volumes are higher than buying volumes. Hence, we can expect the KSM price to decrease.
The RSI indicator is at 39%. It has just fallen from the 60% mark. Thus, selling pressure is slowly mounting. Hence, we can expect the price to fall again for a few hours.
In short, when we look at all three oscillators, we can say that the price may continue to fall. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch to see if an intermittent price fall is a correction or the beginning of a downtrend trend.
The price has fallen below the Fibonacci pivot point of $325.13. As some of the oscillators have shown bearish signals, we can expect the price to fall below the first Fibonacci pivot support level of $259.69 soon.
The price has tested and fallen below the 23.6% FIB retracement level of $325.13. If the price falls below the FIB extension level of $259.69 in some time, this implies that the price downtrend is strong. In that case, the price downswing is likely to continue tomorrow as well.