The "meme" of Crypto HODL is complicated markets
Chris Burniske, a partner of Placeholder Ventures, an investment group focused on decentralization of wealth, data and power, recently took his well-followed Twitter page to express his views on the cryptocurrency market, particularly through the Bitcoin lens " HODL "meme.
As you probably know, since "HODL" appeared on BitcoinTalk as a "hold" error, the word skyrocketed in the legendary status in the cryptosphere, quickly becoming the battle cry for the irreducible of this sector all over the world . And while "HODL" produced good results, with BTC's first buyers raking up pasta, so to speak, Burniske claims it is actually damaging this nascent market.
More specifically, he noted that until there is the completeness of the market, a concept that states that betting on "future states of the world" should be frictionless, "hodlers will make the price of cryptographic resources more faithful than expected ". The former ARK Invest analyst noted that as he stands, cryptocurrencies have a "strong long-term prejudice" – friction. In particular, he drew attention to the short scene, noting that, except for BTC, in fact every other cryptographic market produces friction through a short circuit. As such, he wrote that:
The friction around the short is the biggest contribution to the lack of completeness of the market
#crypto, but this is a temporary condition.
He added that at this time, the lack of completeness of the market, combined with the strong hands of this sector, has produced an environment full of price stickiness, accentuated by volatility and other shortcomings of the budding sectors, in the initial phase. Burniske also added that he expects cryptocurrencies "to remain in an irrational state for a long time", which means that unnecessary, trivial and copy-cat digital resources will not fall to zero.
You could be left to ask: what does all this mean?
Well, since the venture capitalist pro-blockchain has noticed that if the completeness of the market "is not resolved" before the next, imminent race to the bull, "the 2017 bubble will seem curious". In fact, Burniske continued to note that manipulation could be widespread, as certain cryptocurrencies will begin to suffer "crazy price spikes" that can only be described as parabolic. In short, the partner Placeholder is afraid that the current irrationality of crypts can create a harmful market environment in the near future.
The Gravy Bitcoin train has brakes
Burniske, known for his long Twitter shootings, has posted a series of other social media threads in recent weeks that have accentuated relevant industry trends.
Two weeks ago, the Placeholder representative took his Twitter feed, which has a follow-up of over 113,000, to state that the traditional conscience "has almost completely forgotten Bitcoin again" – touching the sudden aversion of the public towards this budding industry.
While optimists beg for the difference, Burniske's comment is undoubtedly credible. Last year, the words "blockchain" and "crypto" occupied the computer monitors of all consumers all over the Earth. The mainstream media, such as CNN and in particular CNBC, have dealt with the theme unceasingly. And the encryption articles occupied the Bloomberg terminals of thousands of Wall Street hotshs. Yet, as Burniske went on to explain, this is not all negative and negative.
The author of Cryptoassets noted that there are now hundreds of thousands, if not millions of new "decision makers" who have gained knowledge of the crypto industry. Moreover, the irreducible, the developers, the investors and the forward-looking innovators still invest capital (both human and financial) in cryptocurrencies and related initiatives. Partner Placeholder, former member of the cryptographic arm of ARK Invest, wrote:
"And the technologists and financial operators who feed the bleeding continue to pay attention, invest or build, just as happened in 2015."
In another thread, the former ARK Invest executive noted that he expects important projects for product distribution in 2019, just as Ethereum launched in 2015. This interesting alignment with Kyle Samani's comments, Fred Wilson and Travis Scher.
Image courtesy of Marco Verch Via Flickr