Jimmy Song Killing the Hopes and Dreams of Shitcoin Bagholders
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“As this bear market has shown, you’re going to get rekt much harder on an altcoin because, one, it doesn’t have the liquidity that Bitcoin has and, two, it doesn’t have the value prop or usage.”
SHOW DESCRIPTION
Location: Austin
Date: Friday, 23rd Nov
Project: Jimmy Song Consulting
Role: Bitcoin Educator, Developer and Entrepreneur
Bitcoiners regularly criticise altcoins; so much so that the term “shitcoin” has become synonymous with anything which isn’t Bitcoin. From the centralised nature of these projects to premines, often Bitcoiner will identify altcoins as a poor investment with some going as far as calling everything that isn’t Bitcoin a scam.
Why are these projects still able to raise $millions in funding and why are investors so divided in their opinions? Are Bitcoiners right that Bitcoin is the only use for a blockchain or are they just toxic and close-minded? Are multicoiners right that this is a new wave in decentralised technology or holding a bias due to their bag holding?
How are inexperienced investors meant to navigate this minefield?
There are nearly 5000 cryptocurrencies with many claiming to have the superior-tech to Bitcoin; whether that’s faster block times or cheaper transactions, Turing complete smart-contracts or environmentally friendly consensus mechanisms. But at what cost? The key trade-off with blockchain technology is decentralisation, where Bitcoin outperforms every other cryptocurrency in the market on almost every measure.
So if decentralisation is key and Bitcoin is king, why do altcoins continue to attract investors despite apparent risks? Is it all down to marketing and the centralised foundations, creators and businesses and are they all doomed to fail?
In this interview, I talk to Jimmy Song; Bitcoin educator, developer and author. Following his recent article “On Altcoin Valuation”, we discuss why altcoins are a poor investment, the misuse of blockchain and why shitcoins rely on marketing to grow.
TIMESTAMPS
00:05:24: Introductions
00:06:04: Why some alt coins succeed
00:13:11: Bet with Joe Lubin
00:15:36: Privacy coins
00:18:18: Why has Litecoin succeeded
00:21:41: Has Bitcoin benefited from marketing?
00:22:46: Early stages of Ethereum
00:27:32: Ethereum’s limitations
00:31:22: Importance of decentralization
00:37:18: Bitcoin is a perfect store of value
00:41:05: Zcash and the coins’ governance
00:46:08: Dai
00:52:36: Why Dai won’t be adopted by the masses
00:55:57: Ethereum’s centralizastion
00:58:35: Tribalism in alt coins
01:08:31: Jimmy’s books
01:12:39: Final comments
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