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Today I was looking at Twitter and couldn't believe when I read what comes next:
"The only way to stop the entire market from being manipulated is to unhinge Alts from bitcoin. The pairings need to be in fiat. The whales can control bitcoin and thus control the entire ebb and flow of the market. When bitcoin drops in USD any alt paired to bitcoin will also drop on USD. Thus people freak out... since they don't understand the dynamics behind the pairing they dump their alts at a lower satoshi price. Which becomes a double negative for the alt"
First of all I must say that in no way, I am not trying to ridicule whoever wrote this text or anyone who might feel there is some truth in it. It's just that I felt compelled to bring up why this is so wrong after checking out on the same platform how many people seem to agree with this.
I want to address a couple of missconceptions here that lead to a failed conclusion.
Firstly, "The whales can control bitcoin" is a very popular myth and there are two main reasons why people believe this even when it's not truth. By checking the blockchain history you can see how a few public keys/addresses seem to handle the biggest amount of bitcoin in circulation. However, people seems to forget that most of these addresses belong to the biggest exchanges in volume, so actually these bitcoin don't belong to just a handful of people but to the millions of users of those exchanges. Definitely of course, there are some "whales" in this world but we also have some very rich people in fiat that have much more money than the rest of us. But this"whales" are not moving their bitcoin around, if they had, they wouldn't be "whales" anymore.
Secondly, "Thus people freak out... since they don't understand the dynamics behind the pairing they dump their alts at a lower satoshi price". Well, of course there are people who do this, we can't deny that. But I don't think you can say that most of altcoins investors act this way. Once you use your BTC to buy some altcoin for the first time you must know why you do it. Is it to gain more BTC or are you interested in buying the altcoin because you think it will help you earn more fiat currency than simply holding your BTC?
If you belong to the first group then you obviously always look at the BTC price, which lives you out of that group of people. If you belong to the second group then, even when you probably look at the USD price, by now you must know the dynamics of this market and understand that if bitcoin's USD price falls, your alt's USD price most probably will fall too and all you have to do is wait for it to go up again. If you don't know that, then you're a victim of your own ignorance.We must not adapt the market to your ignorance, we must try to educate you so you don't hurt your own pockets (and ours either).
Finally, I must address directly this text's conclusive point. "The pairings need to be in fiat". This misses the whole point of what cryptocurrencies were created for, and basically says "we can't let whales manipulate the market, we should just let the FED do it".
What do you think?