April 19, 2022
The exchange trend is pairing USDT to NEWTOKEN and, due to its tenure BTC has become the easiest onramp into the cryptoverse.
There are a lot of crypto gurus claiming predictions based on market fears and such of where BTC is going, however I see no one commenting on the expansion of tokenization as the root cause. Allow me to lay my logic on the line in public forum to explain the new economic impact of tokenization in the moment:
More tokens are coming out faster than ever before and older ones are issuing new tokens or adding to their supplies in IEO’s. These typically bring 500 to 50,000 people to the exchanges to pick up and speculate on these new token issues and this attracts new people to the token side of decentralized finance.
Bitcoin is the oldest tenure and the number one spot on coinmarketcap.com, but is falling behind in the 24hr trade volume compared to USDT, #3 in capitalization. This is a macro indicator as to the movement happening in and between exchanges.
Tracking the competition between transfer networks such as ERC20, TRC20 and Bep20, as indicated by their pricing driven by gas fees, one could easily extrapolate that BTC is the easiest onramp currency as sold and traded prolifically versus the new tokens with limited visibility and low trading awareness, comparatively. I believe many are coming into the market for the first time in WAVE 2 of mass tokenization / DeFI / Decentralization movement and the obvious currency is BTC, often on-ramping newbies to with debit cards now, then transferring into USDT.
There is the lower price in BTC explained, basically. It is the scattering or spreading of function from contribution supply versus new token acquisition.
Now couple that with institutional movement and ignorance-based fear trading and voila, a recipe for lower pricing is born. We may have to accept the reality that BTC is more of an indicator to people on-ramping, much like Internet America and America Online offered people during the earlier mass internet entre’, an era that email was inferior to fax machines.
Much like pre-google internet, BTC is a barometer of onramp and as the price deflates gradually, more people are coming into the tokenization side from novice teens to institutional investors. All are seeking the next giants that emerged from superior organization and transfer protocols in speed, convenience, and autonomy.
The important thing to understand is that we are using basic technology that once allowed all of us to pirate music, movies and books at a time when sharing was physical and lucky. Most importantly when we all started sharing our music files peer to peer, we had the unpredicted effect of slowing down the internet dramatically. Yes: dropping down entire networks to slow crawls due to clogging the interweb lines with massive transfers.
This is the effect we are now seeing in the tokenization world side of the universe regarding BTC.
From Black Dragon 6,
Black Dracos Editorial Desk