WHERE DOES BITCOIN GO FROM HERE?

[Anonymous No.28240333]

None of this is investment advice. Do your own research.

Once again the Bitcoin bull market is in full swing, with institutional buy-ins, daily financial news coverage and a pervasive narrative that Bitcoin is the world’s hot new reserve asset. It’s a narrative geared towards Wall Street and the global financial industry as a whole. Meanwhile, many of us retail traders have moved up the risk curve into utility tokens and DeFi projects, seeking higher rates of returns in an even faster growing crypto sector. When assessing your portfolio allocations, the question top of mind for anyone holding crypto assets should be: “How much market cap can the reserve asset narrative capture for Bitcoin and how will Bitcoin interface with the CeFi and DeFi ecosystem?”

Bitcoin is currently king in CeFi with multiple debit/credit card services, custodial lending and collateralized loan services available. This is what has and will continue to attract financial institutions, corporations and hordes of normies. Whoever dominates CeFi will serve as the on-ramp for traditional finance into the crypto asset space.

In the DeFi space, Bitcoin has remained a very isolated asset, with no native access to the token through any utility protocol. Currently, Ethereum has the largest DeFi ecosystem surrounding it, with the largest market cap of any utility token. Yet, decentralized methods of interfacing with the BTC token have proven difficult or economically infeasible. However, Ethereum is currently a victim of its own success. With increased network congestion, high gas fees and an uncertain future of governance, investment has spilled out into many other utility protocols. Throughout 2020 and 2021, we have seen the rise of DOT, ADA, BNB and others as serious contenders to steal market and developer share from Ethereum. None of these projects incorporate BTC into the core of their vision.

[Anonymous No.28240401]

As institutional investment grows, the Bitcoin market cap sits like an untapped neutron star surrounded by insubordinate planets fighting the pull of its gravity. Eventually, all of that pent up capital will need to be put to use, and if it can’t be done through Bitcoin, investors will seek other store-of-value networks that enable its native token to be put to use (see CKB for a potential hedge against this). It’s clear that Bitcoin needs native DeFi support if it wishes to maintain its reserve status, or else it risks losing its CeFi dominance and on-ramp status.

Now, what exactly has been going on in the Bitcoin space lately? From just browsing threads here, it wouldn’t be unreasonable to assume nothing new. On /biz/, the hype in DeFi is running at full steam and Bitcoin has been sliced out of the narrative. Instead you are faced with Ethereum ecosystem traders and “Other”. Other being a loose coalition who are betting against potential and existing pain points around the Ethereum ecosystem and anticipating a new utility token to take its place, which has fueled the rise of alternative utility tokens. Bitcoin stands as the elephant in the room, seen as either an overextended dinosaur or gate kept by rigid funadmentalist zealotry.

[Anonymous No.28240496]

If you fall into either of these camps, I ask that you suspend your disbelief and consider the following emerging narrative, as you may find it to reveal an oversight in your portfolio allocations.

The Bitcoin adjacent project space has been organically running in a relative stealth mode compared to the broader crypto market. Most have heard of Lightning Network as a layer-2 scaling solution in the past, with not much news since. Lightning Network is very much alive and well, and it’s usage will continue to solidify Bitcoin’s dominance in the CeFi ecosystem. Projects like Strike (https://beta.strike.me/)) use LN and Bitcoin as a settlement network, enabling international cross-currency payments for free to all users. The *final* settlement for these transactions takes microseconds, whereas traditional payment rails can take days or weeks, with institutions taking on credit risk in the meantime.

That’s all well and good, but what about DeFi projects? CeFi services might be expanding under LN, but DeFi solutions seem limited. To get exposure to LN growth, your only option is to buy Bitcoin, and once again you are left out of a DeFi position.

This is where we talk about truly native Smart Contracts and DeFi on top of Bitcoin.

[Anonymous No.28240603]

With most investors focused on Ethereum and competing ecosystems, a massively funded Bitcoin DeFi project (through Union Square Ventures NYC, see: ALGO) has been cruising in stealth with its nose to the grindstone working on it’s new layer-1 Bitcoin sidechain, known as Stacks 2.0 (STX).

STX (based on the original Blockstack project) uses a new consensus mechanism called Proof of Transfer (PoX) which uses the bitcoin blockchain as a validation layer for the STX blockchain. Essentially, a STX "miner" will commit BTC to be burned in a transaction which, if selected, will serve as the validator of the next STX block and mint new STX as a reward. On the other end, STX stakers have a chance to receive the burned BTC as a reward for staking. This symbiotic consensus mechanism is a first of its kind, and creates a potent incentive for bootstrapping a new layer-1 blockchain. PoX enables STX to leverage Bitcoin chain security while also using it as a settlement layer. It's the first project to enable the possibility of decentralized wrapped BTC assets that are fundamentally backed by the Bitcoin chain itself. For the first time, we have a utility token protocol secured by the Bitcoin blockchain, while also offering full visibility into the Bitcoin chain state with its Clarity smart contract language.

https://blog.blockstack.org/realizing-web-3-proof-of-transfer-mining-with-bitcoin/#:~:text=Proof%2Dof%2DTransfer%20is%20a,commit%20computational%20or%20financial%20resources.

Let me make this as clear as possible. With STX, you EARN NATIVE BTC by participating in consensus.

[Anonymous No.28240687]

The stacks ecosystem provides a complete Web 3.0 API that handles decentralized identity, authentication and data storage. This rapidly speeds up development of Dapps while also providing users a single decentralized identity that can be used with cross-dapp compatibility. Instead of logging in with your Google or Facebook account, you’ll use your decentralized stacks account, which is integrated with the wallet of your choice. This enables app developers to integrate any future DEX, lending protocol, NFT standard (think ERC-20 equivalent) etc straight into their apps seamlessly. All secured by the Bitcoin blockchain.

The existence of Stacks changes the meta behind the DeFi space, and it’s broad lack of exposure holds opportunity and also risk to investors in the space. With all eyes on Ethereum and its competitors, Stacks presents an extraordinarily asymmetric opportunity, with only 300MM in market cap and absolutely no competitors in it’s potential market. The risk of remaining ignorant to an emerging Bitcoin DeFi protocol could be devastating to investors who are over extended in Ethereum and other ecosystems. Not having partial exposure to this emerging DeFi space is a glaring hole in an all-weather DeFi portfolio.

With DeFi being a nascent space, having a winner takes all mentality can slaughter you. If you are investing in DeFi, failing to account for STX exposure in your portfolio is negligent. If you are a BTC maximalist, you are ignoring emerging uses cases in your backyard with your head in the sand.

Native access to nearly $1 trillion in programmable assets necessitates an inevitable storm of growth. Don’t catch yourself unexposed.

[Anonymous No.28240936]

>>28240333
>WHERE DOES BITCOIN GO FROM HERE?
It's easy. We dump and dab on Elon now.

[Anonymous No.28241632]

Whats stopping ethereum from implementing defi with bitcoin

[Anonymous No.28242093]

>>28241632
For using Bitcoin state on Ethereum, you'll need to implement Bitcoin SPV proofs. It's entirely possible but fairly complicated to do that given (a) Ethereum is a separate network that can fork independently from Bitcoin (Clarity contracts on Stacks fork with Bitcoin), and (b) Eth miners have no native visibility into Bitcoin state (Stacks miners have full visibility into Bitcoin state). It's possible but usually cost prohibited as gas fees outweigh the value captured. Further, any asset generation and transfers etc on such ERC20 asset would have nothing to do with Bitcoin vs on Stacks all asset generation and transfers etc settle on Bitcoin and are secured by the Bitcoin main blockchain.

[Anonymous No.28242173]

>>28241632
cost prohibitive

[Anonymous No.28242761]

God dammit not yet OP. I've been accumulating since US trading launched last month. I need more time.

[Anonymous No.28242792]

I am trying to accumulate 0.1 before end of Q1
will I ever see 6 figure?

[Anonymous No.28243159]

>>28242792
Yes.

[Anonymous No.28243436]

So buy STX?

[Anonymous No.28243840]

>>28243436
Yes anon, buy STX

[Anonymous No.28243854]

>>28243436
To add, will STX be a good investment if you haven't invested anything into BTC yet?

[Anonymous No.28244126]

>>28243854
It depends on your risk tolerance. However, if you ultimately want BTC exposure, holding STX is less riskier than holding other utility tokens, as you can stake it for BTC yield while also getting exposure to BTC's price action given that the two chains are economically tied through consensus.

[Anonymous No.28244206]

>>28244126
And how much of a stack of STX would I need to make staking it feasible? Because I do like the sound of that.

[Anonymous No.28244340]

>>28244206
OKCoin offers 15% yield with a minimum stake of 100 STX which is around $50-60 currently.

[Anonymous No.28245176]

Isn't it just more likely that ethereum will be used fir dapos and defi since it was first bd btc will just be a store of value

[Anonymous No.28245191]

Good evening to all fellow stackers

[Anonymous No.28245385]

gawd i wished he just said buy stx, sirs

[Anonymous No.28245406]

>>28245176
You still want to be able to put your SoV assets to work. There's no proper way to participate in Ethereum DeFi with BTC. wBTC is a centralized solution with a middleman, meaning there is counterparty risk.

[Anonymous No.28245474]

>>28244340
what? how does that work?
shill a retard like me, op

[Anonymous No.28245526]

ok im sold where the fuck can i buy myself a bag of stacks

[Anonymous No.28245691]

Tesla buying is a huge boost but the huge gains Bitcoin is having is pushing it into great filter territory. There is a very good chance that the feds try to regulate it to death before it becomes an independent and competitive pillar to the existing financial system.

[Anonymous No.28245756]

>>28240333
>Where does bitcoin go from here
Unironically to the moon
On a SpaceX rocket.

[Anonymous No.28246088]

>>28245474
Miners of STX don't contribute computational power to the network, instead they bid on validating the next block with Bitcoin. They do this by sacrificing or "burning" some Bitcoin with a transaction on the BTC chain, which gives them the opportunity to validate the next block. If they win, they are rewarded with newly minted STX.

On the flipside, if you own STX you can stake those STX for a chance to earn the burned BTC that STX miners sacrificed. The current payout for staking STX is sitting ~15%.

>>28245526
If in USA, OKCoin. Elsewhere, Binance.

[Anonymous No.28246176]

>>28245406
So sell bitcoin for ether

[Anonymous No.28246446]

>>28246176
That's one way to play it, but you risk blowing up your portfolio if the narrative shifts to Bitcoin DeFi. There's no sense on going all into one particular narrative this early, especially since Ethereum has it's own issues.

One other thing I would warn of is to not be fooled by the Ethereum developer ecosystem. While it is absolutely the largest, that's not saying much in the terms of total potential developer manpower. Most software developers haven't entered the space, and there's enough to go around for all of these emerging ecosystems.

[Anonymous No.28247103]

>>28245406
Doesn't REN solve this?

[Anonymous No.28247565]

>>28247103
RenVM only has access to HTLC state, not native BTC chain state.

[Anonymous No.28247707]

>>28247565
not to mention insane gas fees for minting. Imagine having to pay an onchain BTC fee to initiate the HTLC and then pay gas fees for minting. insane

[Anonymous No.28247847]

>>28247565
Right, but it allows btc to participate in DeFi. I know that BTC is currently the most secure network in existence, but i can also see a future where it gets migrated to a more efficient and sustainable network.

[Anonymous No.28248084]

>>28240333
>>28240401
>>28240496
>>28240603
>>28240687
High effort shill post, have a bump and talk sweet STX to me baby

[Anonymous No.28248170]

>>28245385
What, you like the low effort shill posts? Garbage tier anon

[Anonymous No.28248411]

The problem with Bitcoin is that the only reason to by this asset is because you expect the price to raise, but this isn't sustainable. A crypto that only serve as "store of value" is deprecated once people move to the actually useful coins (with features that are required in the real world), The whole concept of digital gold will be flipped: what's gold when everything is gold? Proof of scarcity is already the standard of crypto! In my opinion, Bitcoin will stay strong as long as fiat is alive, but once the influx of new DeFi newcommers is over, this bridge won't be needed anymore. The coins with the most thriving financial systems will win the first mcap place. (Don't think btc will ever leave top10 (unless it doesn't evolve to PoS), but I don't think it will stay in top1 either).

[Anonymous No.28248418]

>>28240333
To around 20% market dominance, because finaly everybody knows that this shitcoin has zero utility and is ponzi.

[Anonymous No.28248720]

>>28248411
In 2017 you were right. But today you can can earn 60% APY with a BTC/ETH UNI LP for nearly no risk because both assets move very similar and have no impermanent loss.

So yeah. You are talking BS.

[Anonymous No.28248763]

>>28247847
>Right, but it allows btc to participate in DeFi.
Cost, feasibility and ease of access are the most important issues here.

PoW is in the process of completely changing the way energy markets work. It only needs to exist on a single chain, bitocin, while next layer chains validate themselves by validating blocks on it.

[Anonymous No.28248932]

>>28248720
>give % APY to all users
>now supply increase by %
>market price decrease and wallet value stay the same
>you r BS! :3
okaay anon whatever makes you feel happy

[Anonymous No.28249020]

>>28248763
hahaha - see your Ponzi at 20% dominance brainwashed loser.

[Anonymous No.28249360]

>>28247847
>BTC is currently the most secure network
Uhm... sorry to burst the bubble, but PoW is a joke.
https://arxiv.org/pdf/1311.0243.pdf

Being centralized is unironically one of the reason it gets so much free advertisement, but here is the thing, if this centralization is "fixed", money won't flow into marketing anymore. Bitcoin is effectively a ponzi scam.

[Anonymous No.28249626]

>STX up 11% since this thread was posted

Holy fuck OP

[Anonymous No.28249668]

>>28248763
>it only needs to exist on a single chain
why does PoW need to exist at all?

[Anonymous No.28249903]

>>28249668
It's already dead.
Look how all the other POW shitcoins are performing against POS .
POW holders are poor creatures whooo misse tech progress completly .

[Anonymous No.28249945]

>>28249668
https://www.youtube.com/watch?v=gySDnQEAwUQ

[Anonymous No.28250761]

>>28249945
This explains a solution to one of the problems PoW presents, it doesn't justify why PoW should exist. I don't care about ruining a nice waterfall with hydroelectric plan to mine btc. I don't see this as a good thing.

[Anonymous No.28250939]

>>28250761
PoW exists simply because there isn't a better alternative. PoS fails in it's game theory. The guy's at OG Rand corp would be ashamed.

[Anonymous No.28251628]

>>28250939
humanitarianism aside (I think the democratization of energy is a rich and debatable subject)
Why is PoW better? how does PoS fail?

[Anonymous No.28251675]

Bless them father, they know not what they do

[Anonymous No.28252409]

>>28245191
reporting in with a 10k STX suicide bag

[Anonymous No.28252439]

>>28240333
>None of this is investment advice. Do your own research.
why do people keep saying this
SEC isn't gonna hunt you down for a 4chan shitpost

[Anonymous No.28252487]

>>28250939
PoS is provably secure. Many cryptos have demonstrated possible ways to make it work, without being vulnerable to the "nothing at stake" issue.
>>28251628
PoW isn't better and is inherently centralized, since blocks rewards are unevenly distributed to the most competitive miners allowing reinvestment of gains into exponential advantages. Also, a few stake pools hacked or tampered can lead to a double spent. There is nothing trustless about it. See pic >>28249360

[Anonymous No.28252611]

>>28252439
I guess, people are saying this to remind you everything you read is biased. Don't be hyped because you finally found someone confirming your belief system.

[Anonymous No.28252805]

>>28252487
>stake pools
I mean, mining pools.

[Anonymous No.28253171]

>>28252439
eat a fucking faggot your fucking faggot the sec is doint its best

[Anonymous No.28253364]

>>28248411
>actually useful coins
Just so you know this tone/opinion of yours is purely subjective nonsense, and a common newfag fallacy that "hurrrr durrr bitcoin isn't used". Holding something as a SOV digital gold is a use case, it is bitcoin being used ignoring some people's semantically foolish insistence that only what they mean by "use" qualifies. And there is next to zero chance another crypto really challenges bitcoin for that use case if you understand the network efect and economics.

The other anon was right to reply to you that what you are saying is basically a washed up 2017 narrative that never panned out, mumbled by ethies who then expected muh flippening to be imminent.

[Anonymous No.28253387]

[Anonymous No.28253461]

>>28246088
anon describing a ponzi with other words lol

[Anonymous No.28253955]

>>28242792
I'm still sitting at 0.022 after almost a year of acoomolating. Feels bad being a poor third worlder.

[Anonymous No.28254221]

>>28253461
How else would you validate a sidechain's blocks?

PoX has an incentive mechanism through stacking to bootstrap network participation, but staking is slowly phased out 12 years until the consensus algorithm is fully Proof of Burn (PoB), meaning that all BTC committed to mine STX is permanently burnt.

[Anonymous No.28254986]

Is .3 btc good for a poorfag?, will I make it this decade?

[Anonymous No.28255568]

>>28254986
Six figures this decade.

If you convert some to STX you can stake it for 15% APY BTC interest for extra gains.

[Anonymous No.28256151]

Bitcoin has no intrinsic value. It's a dead coin

[Anonymous No.28256359]

>>28253955
Nigger you saw btc at 5k and after a year you only have 0.022? That was like $100 back then, even a cambodian could buy more

[Anonymous No.28256608]

>>28246446
Thank you for sharing your thoughts, anon

[Anonymous No.28257006]

>>28246088
thank you.
oppa gangnam style.

[Anonymous No.28257083]

>>28252439
Do you want to feel responsible for the monetary loss of others?

[Vitalij No.28257198]

Did you see a new binary exchange BAEX ( #baex)? Looks like this is not so bad with all these tools, fiat currencies, BTC, ETH, stock indices. They also offer algorithmic profitability with a self-balanced pool, so passive income is also available, as I see

[Anonymous No.28257334]

>>28256151

Honestly this. Its functionality is fucking terrible. Only a matter of time b4 it becomes obsolete and ppl trash it like they did Dial Up.

[Anonymous No.28257769]

>>28253955
invest in projects that are still ahead of a 100x, new defi stuff. You have too little money to invest in BTC,even if it did a 10x you wouldnt be too far ahead

[Anonymous No.28258851]

>>28242093
wbtc is 16th in marketcap. btc is very much in defi and ethereum it’s just not trustless

[Anonymous No.28259316]

>>28240333
Good write-up my friend.
You raise a good point regarding CeFi having some merits that DeFi doesn't. With all the hype that has been building these past few years, we've become blind to the possibilty the DeFi might not work out at all, at least in this decade.
In terms of legislation it's a complete unkown what the fuck will happen to any of these projects, boomers writing laws can barely keep up with the idea of crypto or a blockchain, is it wise to expect them to come up with legislative answers to complicated things like staking, delegating, decentralized governance, etc. Shit is a legal mess, a knot that won't be unwound for many years. That is what gives bitcoin it's merit, despite being completely obsolete at this point, its simplicity turned out to be its strength. It is something that can be analogous to a real life asset, it already has legislative foundation, and most importantly it doesn't push for decentralized finance as much as new gen DLTs do.

People should think twice before dumping their investments in all the hype. Sure all the new projects coming up will find success in the short term, but when time for adoption arrives, that's when there will be a very high risk of DeFi shitting the bed.
Nothing in this scene is a safe bet, but for now Bitcoin looks to be the safest.

[Anonymous No.28259850]

>>28242792
Here I am trying to get to 0;01 and I think I will never get there, hope one dya one day, that's all I need.

[Anonymous No.28260237]

>>28248084
This. I hate shills but this was done nicely.

[Anonymous No.28261683]

>>28240333
the moon

[Anonymous No.28262785]

>>28258851
Yeah let's onramp ~900B of wealth to defi through custodians. That's a genius solution.

[Anonymous No.28263673]

>>28259850
You got this anon

[Anonymous No.28264373]

DeFI will not see widespread adoption until there are zero gas fees and normies can buy shitcoins on Uniswap with their credit cards sadly.

[Anonymous No.28264660]

>>28240333
OP this thread is way too high IQ for 4chan. What are you doing?

[Anonymous No.28266158]

>>28264373
Or, Ethereum is replaced

[Anonymous No.28266484]

>>28240401
>>28240333
I'm not reading any more of this because it's obvious whoever wrote this doesn't understand medium of exchange versus store of value, and that a currency doesn't have to do both.

[Anonymous No.28267202]

>>28266484
I think you should finish reading it.

[Anonymous No.28267772]

>1.32 billion STX tokens premined and distributed to "developers" and "investors"
>infinite supply
ya, thanks but I'll pass

[Anonymous No.28268117]

>>28267772
>he doesnt understand asymptotic curves

[Anonymous No.28268294]

>>28268117
smells like curry in here

[Anonymous No.28268384]

>>28267772
The "premine" was the ICO token sale that literally anyone could have bought from. (except Americans who were cucked by SEC)

[Anonymous No.28269966]

>>28240687
Defi sucks. If you do it right, meaning it is actually decentralized, then it will be expensive and immutable. I would rather loan my bitcoin through a few different centralized platforms instead, it will be cheaper and I have someone to sue if they get blown out with margin calls or something. What happened with mkr/dai back in March is enough for me to never use defi for getting yield, smart contracts are just not trustworthy and it will be too difficult to be made whole again if there is a black swan.
I only need immutability and decentralization for the base asset itself, keep the rest of that defi bullshit off chain and get your yield with reliable centralized institutions with traditional insurance, etc

[Anonymous No.28270115]

>>28262785
Custodians are literally the only way that blockchains scale. They don't scale worth a shit, you have to centralize in some way in order to scale.
You should only use them for what they are good at, which is protecting the base unit itself. Everything else needs to happen off chain or layer 2

[Anonymous No.28270669]

>>28266158
whatever comes first, DeFi is great in concept but gas fees rape you without the decency to use lube. The moment that shit disappears and can see widespread adoption among normies

[Anonymous No.28270880]

I'm not reading this shit.