As the Bitcoin Cash [BCH] hash war ensues, the Bitcoin [BTC] community is becoming increasingly known as being toxic. Known as the Bitcoin maximalists, these individuals are beginning to take over the safe space of many individuals in the cryptocurrency space, as mentioned by WhalePanda, a crypto-influencer.
Speaking on the Magical Crypto Friends show, he stated that a lot more criticism is being levied against the BTC community, along with more infighting. He further elaborated that people are beginning to “feel attacked” and that it was “not a safe space anymore” as they get criticized immediately.
He stated that it was “a bit toxic”, with even Vitalik Buterin speaking up about the issue. Bringing the question to his peers, namely Litecoin [LTC]’s Charlie Lee, Blockstream’s Samson Mow, and Riccardo Spagni, the handler of the Monero [XMR] codebase. Spagni was the first to respond, prefacing his opinion with a statement that he was a firm believer in Bitcoin and its success. He further stated:
“I think that there is too much brain power, research, adoption and money that has been poured into Bitcoin for it to fail. I truly believe that. Obviously there’s always a chance but I think that the chances a Bitcoin failing are at this point infinitesimally small I think the chances of every other altcoin failing are higher.”
However, after stating so, Spagni said that he believed that it was a rational belief. However, he broke away from one of the most basic beliefs of Bitcoin maximalists: that the coin was set to be the world currency. Spagni said that he did not believe in a world where “every human on the planet” would find a need for sound money in the form of Bitcoin. He stated:
“It’s like the entire world waking up and saying, ‘you know what sucks? Human government. You know what we’re going to do, we’re gonna have a new form of government that doesn’t involve humans. I mean it’s like that might happen but the chances are its not gonna happen because we’re dumb and we’re human and we’re imperfect.”
Spagni stated that humans are not going to globally adopt Bitcoin, and that they will always be pushed around by “the charlatans and snake oil salesman” of the world. He elaborated:
“You can promote Bitcoin as being sound money no problem but then you can also accept that there are going to be other projects along the way that might also survive. Just accept it and see what happens.”
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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
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