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Crypto Research

The thesis against Crypto Exchanges



Crypto is digital money, and it supposes to serve you automatically. Why you need a third party to guard your money? 

The question is, what makes crypto exchange services appealing to you?

The ChatGPT answered:

A crypto exchange is necessary for individuals and institutions to buy and sell cryptocurrencies. Without a crypto exchange, it would be difficult for people to find a buyer or seller for their digital assets and the process would be less efficient. Exchanges also provide a platform for trading and speculation, and often offer additional services such as wallets for storing cryptocurrencies. Additionally, exchanges can also offer trading pairs for fiat currencies, allowing individuals to buy cryptocurrencies using traditional currencies. Overall, crypto exchanges play a crucial role in the ecosystem of digital assets by providing liquidity and facilitating the buying and selling of cryptocurrencies.

Let’s explore the reasoning.

Crypto exchange helps you to buy and sell cryptocurrencies. The service they provide is a place to exchange cryptocurrencies with fiat currencies so that you can purchase from them. 

Unlike central banks who are an fiat currency issuer, crypto exchange is not an issuer but a facilitator to offer services to customers. 

The problem of none issuer of the currency is that you have a counterparty risk that you rely on their judgment of price and services they offer, or you have not other choice but to choose from them.

This is bad because cryptocurrency is about choice and freedom. Crypto exchange offers you a choice and freedom they choose for you.

There aren’t many choices for you to purchase cryptocurrencies from besides those exchanges which makes it even worse for the entire industry.

Those crypto exchanges are monopolies who can decide on what services they want to offer. 

Crypto is already risky to own, but those crypto exchanges make your assets more risky than you thought.

So why crypto exchange then?!

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Crypto Research

Why Ethereum killers are killing themselves



Ethereum killers are killing themselves!

ChatGPT described the Ethereum killer as:

Ethereum killers refer to other blockchain projects that aim to surpass Ethereum in terms of features and adoption. While there have been many projects that have attempted to do so, Ethereum remains one of the most widely used and well-established blockchain platforms. Additionally, Ethereum is continuously evolving and implementing new upgrades to its network, making it difficult for other projects to truly “kill” it. However, it is important to note that the crypto and blockchain space is highly competitive and constantly evolving, so it’s possible for new projects to gain traction and potentially challenge Ethereum’s dominance in the future.

But they missed several points.

When those killers market themselves are better choices, they forget the on-dock experience that allows developers to transit from one blockchain to another.

There is no way you can ask developers to abandon their existing projects and choose your blockchain with no reason simply it is faster, cheaper, and low fees.

Of course, multi-chain is one way to connect with other blockchains, but it still needs to have security without the chain to be hacked.

It is simply to risky to transfer from one chain to another.

Another factor is scalability.

It is too overrated. With the faster scalability, you are likely to die fast too.

There is no way to build a community with speed and hope people will stay there to root for you.

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Crypto Research

Bitcoin is not efficient



Bitcoin is not efficient as we thought before.

ChatGPT said that

Bitcoin is considered to be efficient in terms of its ability to facilitate fast and secure transactions without the need for intermediaries. Transactions on the Bitcoin network are verified by a decentralized network of users called “miners,” which eliminates the need for banks or other financial institutions to act as intermediaries. Additionally, the use of blockchain technology, which is the underlying technology of Bitcoin, ensures that transactions are recorded immutably and transparently.

The problem is when Bitcoin becomes hype, and miners increase their energy usage to mine out of Bitcoin, potentially diminishing the return of input energy.

That is likely to make the Bitcoin price plateau and no longer can function as it intends to be.

It is unlikely that when supply is limited, the value of Bitcoin will go infinity. Instead, Bitcoin price will plateau until the mining exhausts out, and transaction fees will increase until people can no longer afford it.

Bitcoin is not a money instrument but to measure opportunities.

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Crypto Research

Crypto whales are secretly dumping



The bullish trend is up and continuing? No so fast!

ChatGPT defined crypto whale is:

A crypto whale is a term used to describe a person or entity that holds a large amount of cryptocurrency. These individuals or entities can have a significant impact on the market due to their ability to buy or sell large amounts of coins at once. They are also known to have the ability to manipulate the market in their favor.

The market sentiment is too optimistic about the bullish trend, indicating that investors are trying to recover 2022 losses as much as possible before it is too late.

Since institutional investors are hoarding more cashes to prepare the worst, crypto seems work at the best. 

However, whales are more cautious and unlikely to enter large positions until the economic indicators are clear.

The problem is that the market needs to include a critical point that the Fed still needs to do their increasing of the interest rate and dollar weakening is a short-term play.

The market will deteriorate faster than we expect to be. As a result, retail investors have to be very careful in managing their positions in crypto.

Whales are taking profits and patiently wait for another correction to come.

It will get worst before it gets better.

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