Monday, November 9, 2020

The neutral corner

Silicon Valley & 'Smart Money' Behind This Bitcoin Rally, Data Suggests
When whales buy Bitcoin, they mostly facilitate the deals through the over-the-counter (OTC) market. Over time, spot and derivatives markets trail the OTC market as whales lead the upsurge. Woo said:
“Who has been buying this rally? It's smart money... High Net Worth Individuals. You can see the average transaction value between investors taking a big jump upwards. OTC desks are seeing this too. Bitcoin is still in it's stealth phase of its bull run.”

The trend of whales frontrunning retail investors is optimistic because it shows Bitcoin is still in its nascent bull phase. Large capital from new retail and mainstream investors is yet to enter the cryptocurrency market.

The great thing about the block chain, it is currency and insider neutral.  One can park any central bank currency there, in neutral position until the currency shock has happened. 

Brings back the debate, if this market is so useful, then why not keep it. The alternative is to shard the block chain and make short chain cash.  I think their is a middle, a real hot spot now that covid is done.  Shard Btc for closed resort economies. If you are going on a trip, buy a chunk of bitcoin shard for the resort, all their prices are in Btc shards.

Combine the shard concept with advertising and trip sales, the amount of agglomeration up the chain is not done, and this is a huge business, valuable service.  The company can keep a set of short chains for each resort economy, offer swaps between various shard chains. Gobal travel network, under the one app.

Resort owners, operators and their retail chain can price all goods in one currency that is neutral to any central bank. There inventory flow much smoother, like a special purpose euro for a vertical segment. What a better segment then travel networks.

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