Notes of Satoshi Mamoto | Chris Burniske: BTC goes to gold, ETH goes to currency
Today's content includes:
Today's content includes:
1 Chris Burniske: BTC will go to gold, ETH will go to currency
2 Every Bitcoin Bull Market Started With Miner Capitulation
3 The Story of Binance’s Explosive Rise
4 The massive growth of the derivatives market and its implications for the future of Bitcoin
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Chris Burniske: BTC will go to gold, ETH will go to currency
Chris Burniske's tweet about his views on Bitcoin and Ethereum and Defi. His point of view, in fact, recognizes the marketing term "ETH is Money", and by the way, DCR.
In the long run, I expect assets that target stores of value (eg, $BTC , $DCR , $ETH ) to be widely used as collateral, rather than as a medium of exchange.
Most of the world's population is living with hyperinflation; these inflationary assets are the ones that people want to use as a medium of exchange. People want to hold assets that are resistant to inflation or deflation because the promise from these supply curves is that they are good stores of value.
I'm familiar with @MustStopMurad's Bitcoin development curve, eventually BTC becoming a medium of exchange, or @saifedean's hope of becoming the base of the global economy, but the data does not support these stories.
Coinbase conducted a survey in 2016, and people used BTC more and more as SoV (store of value), and less and less as a medium of exchange.
My point is: BTC should learn like Ethereum. The "mortgage economy" brought about by the emerging DeFi allows Ethereum to expand its utility scope with ETH as SoV, far beyond its use as a pure medium of exchange. Widely available collateral may also reduce its volatility.
Perhaps one day BTC's PoW-based SoV will be considered "off-chain" collateral (external collateral) to the world. At the same time, ETH, as a PoS-based SoV, will become the Internet's "on-chain" collateral (endogenously secure).
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Every Bitcoin Bull Market Starts With Miner Capitulation
Mining difficulty may be an indicator to predict BTC price. According to PlanB, a cryptocurrency research organization, the three major bull markets in Bitcoin's history all started after the mining difficulty reached a trough.
Whenever mining difficulty hits an all-time high, the price of Bitcoin drops dramatically, and keeps dropping until a large percentage of miners are unprofitable.
Over the past decade, every time Bitcoin mining difficulty reached its lowest point, there has been a major bull run. Lowest points were reached in early 2012, in the second quarter of 2015 and at the end of 2019.
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The Story of Binance’s Explosive Rise
This article mainly tells the story of the rise of Binance. You can read Leek, other exchanges, and entrepreneurs in the currency circle. The length of the article is very large, so many scattered points have been extracted, which may make the context and background messy.
I found the world's largest cryptocurrency exchange to be more of a rebel than a legitimate company, a repudiation of the traditional financial system.
Binance is strategically building something bigger than a cryptocurrency exchange: they are building the future of finance. ——Tushar Jain (Multicoin)
One night in August 2013 would fundamentally change Changpeng Zhao's life. He was playing poker in Shanghai with two friends, BTCC bitcoin exchange founder Bobby Lee and Ron Cao, who was a partner at Lightspeed Ventures at the time. Ron Cao has been talking about Bitcoin, and this is the first time Changpeng Zhao has heard of it.
Changpeng Zhao was very interested. Not long after, he sold his house for $1 million and put it all in Bitcoin. Changpeng Zhao bought it at US$600, even though it fell to US$200, Changpeng Zhao did not cut the meat, and has been holding it for a long time.
On June 14, 2017, Zhao was dining with a hall of famer of the Asian crypto community, including Neo founder Da Hongfei and Monaco (now Crypto.com) founder Kris Marszalek in Chengdu, China. The discussion touches on initial coin offerings — startups getting funding for nothing more than a great idea, a white paper, and issuing their own tokens. “With your help, Binance will build a world-class cryptocurrency exchange, powering the future of cryptocurrency finance,” the white paper promises. All it needs is its own token.
Investors who bought Binance Coin thought it would earn a 5-10x return. Instead, it quickly lost 20% of its value when it launched on July 25, 2017.
He Yi was the one who convinced Zhao Changpeng to become the CTO of Okcoin. On the day He Yi took over as the Binance coin, the price of BNB woke up and surged 1800% in just two weeks, from $0.13 to $2.45.
Binance has had its hands full over the past 12 months. Every day there are new announcements: first leveraged trading, then margin trading. Now, provide lending services, earn rewards and peer-to-peer transactions. Because of the exhaustion, Binance perfectly adapted to the distributed office, Binance is no longer just an exchange, but also is becoming more than a company.
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The Massive Growth of the Derivatives Market and Its Implications for Bitcoin's Future
We are seeing a thriving derivatives market showing that Bitcoin’s liquidity is healthier than ever. This article examines recent developments in Bitcoin transaction behavior and its many benefits to the ecosystem.
In early 2019, Bitwise discovered that 95% of Bitcoin volume reported on CoinMarketCap.com was fake. Alameda Research reports that while many exchanges do generate fake volume data, the actual amount of actual volume is significantly higher than what Bitwise found.
Spot market volumes (the value of unleveraged physical bitcoins bought and sold for fiat currencies) have not surpassed the peak of the 2017/18 bubble. However, since the beginning of 2018, a new dynamic has developed - the massive use of Bitcoin derivatives.
The rapid growth in the use of derivatives has been surprising, with the combined volume of Bitcoin spot and derivatives trading now at levels comparable to the 2017/18 peak.
Globally, the face value of fiat currency derivatives contracts is approximately $1 trillion. This is 6,250 times larger than Bitcoin's market capitalization. Bitcoin has a lot of room to grow.
The increased number is a step towards greater adoption of Bitcoin. It provides greater access to Bitcoin. Greater liquidity makes it easier for larger financial institutions to enter the Bitcoin market because:
– Market prices can be trusted better
– Easier to enter and exit the market with larger funds without major price slippage
Summarize
Summarize
– Bitcoin is more liquid than ever
– This liquidity provides greater Bitcoin flow for institutions
– Derivatives provide Bitcoin miners with more certainty of income and thus can commit to the Bitcoin network in the long term.
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Skale: Introducing BLS-ROLLUP
The BLS-ROLLUP scheme written by Layer2 project Skale, they worked out the BLS-ROLLUP scheme and announced their decision to incorporate BLS-ROLLUP into the SKALE production network. Every SKALE validator will participate in BLS-ROLLUP and earn from BLS-ROLLUP fees. Skale's plan is written in great detail, and the internal strength is too long, so I only give a brief introduction. You can read the full text for the specific design and implementation.
ROLLUP is a type of Layer 2 scheme that is very popular on Ethereum this year. The BLS-ROLLUP scheme is an effective and safe way to use the SKALE network to accelerate transactions and smart contracts on the Ethereum mainnet while retaining layer 1 security. ensure.
BLS-ROLLUP：
– Instantly safe and cheap
– No waiting time required
– No need for computationally heavy zkSNARKS/STARKS
BLS-ROLLUP will be divided into two phases:
– In phase 1, we will use the SKALE network to help make the ETH mainnet a bit faster. This allows us to do around 50 ERC-20 token transfer transactions per second.
– In phase 2, we will further help the mainnet with the SKALE network, which allows us to do about 350 transactions per second.
– The long-term goal, along with heavy software development in Phase 3, will enable over 1000 transactions per second, matching or exceeding the aggregate speed of the upcoming ETH 2.0 network.
