Roger Ver never fails to stir up a storm within rival communities, this time riling up one of his favorite targets, the Bitcoin [BTC] community. Ver, who is also referred to as Bitcoin Jesus has continued his tirade against the top cryptocurrency since Bitcoin Cash [BCH] hardforked away from Bitcoin [BTC] in August 2017.
In his most recent tweet, Bitcoin Jesus stated that the BTC camp gets the concept of one of the most stable assets in the world, Gold, wrong. He stated that the metal has a “huge amount of industrial uses,” and it is because of these very uses that Gold is considered a “store of value.”
His tweet stated:
“It’s amazing how many BTC maximalists don’t even know that gold has a huge amount of industrial uses completely separate from just being a store of value. In fact, it’s those other uses that enable gold to be used as a store of value.”
Roger Ver failed to reference anything regarding the supply limitation of Gold, much like Bitcoin which is capped at 21 million. He claims that “those other uses,” give it the status of being a store of value.
The implication from this tweet could be, besides an obvious attack on Bitcoin, is that the top-cryptocurrency does not have any “industrial uses,” and hence is one of the reasons BTC cannot be a “store of value,” or a medium of exchange. However, this implication was not explicitly mentioned by Ver in his tweet.
Twitter users did not waste time and began lambasting Ver using the aforementioned supply cap argument.
Mike Dudas, the founder, and CEO of The Block Crypto did not mince his words. He commented:
“You and I both know that that is total horseshit — and I’m not a BTC maximalist, just someone with a normal amount of brain cells.”
jratcliff63367, a game developer and software engineer at Nvidia, a Graphics Processing Units [GPU] manufacturer which is used in Bitcoin mining equipment, stated:
“If gold were useful but also as plentiful as grains of sand, it would be nearly worthless. It’s not worth money because it’s ‘useful’, it’s worth money because it is scarce. BTW, Satoshi explained in detail how bitcoin mimics (and improves) upon the properties of gold.”
Dr. Bitcoin [ß] commented:
“No, it’s not. Silver and copper have many (more) industrial uses. That property is not what enables gold to be used as a store of value; its stock to flow ratio is. Regardless of how high demand is, amount of gold mined per year is predictably between 1-2% of total supply.”
As far as stability goes, Gold being precious and, more importantly, a tangible metal will allow it to have more features of an asset striving to be a “store of value.” However, in terms of transferability, cryptocurrencies are more widespread. jratcliff63367’s second comment succinctly puts forth this argument:
“It’s amazing that Roger doesn’t see the ‘industrial uses’ for bitcoin. The last time I tried to send an ounce of gold across the planet over the internet it didn’t work for me. Bitcoin does.”
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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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