I guess everyone's strategy in the crypto space is put everything you have on bitcoin and hope it goes up.
It's a really good strategy, when it works.
It's a really good strategy, when it works.
This is definitely not "everyone's strategy"; plenty of us bitcoiners have been warning against this sort of irresponsible activity for a long time.
"Not your wallet not your coin", or whatever they like saying, is just is just deflection from valid criticism that crypto is very easy to exploit without recourse.
People are learning to use better passwords, and people learned long ago to keep their paper money in a wallet. The same will happen with crypto.
It depends on a lot of factors; like how important it might become for people to avoid using fiat or government controlled digital currencies, or how deeply integrated it could become in daily life.
What’s the motivation for this to happen?
Blockchains like Ethereum are not (and aren't meant to be) alternatives to fiat. In fact, the best thing for ETH would be low price, since it's mostly used as gas. Altcoins are almost entirely vaporware until ETH tech matures and consumer services become feasible. Until then, any high valuation of either ETH or Altcoin is 100% Tulip Mania. I have no idea about any blockchains outside of Bitcoin or Ethereum.
Which ironically, is why more of them keep (and will keep) falling. It'll be a cascade of withdrawals across the ecosystem, and all these weak platforms will rightly go under. Looking forward to it.
Where there any crypto investment Funds that invested in actual companies (aka not coins or derivates)?
These folks bought GBTC, traded GBTC and staked it with others, exchanged it for USDC staked that and then used the money to buy more BTC.
No one offers 3% to 20% APY just holding BTC. They are trading that coin to everyone else in a shadow banking / speculation scheme and hoping for the best.
I think you're underselling the difficulty of this problem by the adverbial just.
I think the shoeshine boy moment might be here with bitcoin and crypto, thanks to things like the Super Bowl ads, so that strategy you stated is much riskier than it was in the past, and potential returns lower. Pumping doesn't work well when the flow of new investors ebbs.
Eventually a lot of the "investors" may need to take out money out of bitcoin into fiat to pay for necessities, especially if a recession hits.
The issue is that people don't need or want to buy crypto except for speculation(other than some temporary crypto purchases for ransomware, drugs, money laundering etc.) to flip it.
I'm not putting much skin in this game, but I'd be a fool not to hedge my bets and stake some versus blind myself on principle and sit on the sidelines. Betting what you don't mind losing is always a winning strategy; things can only go up with that outlook.
No serious crypto person will tell you to use CeFi.
"Not your keys, not your coins" is the first rule of crypto.
Nobody used the term CeFi before this crash. It’s just a No True Scotsman excuse for crypto scamming.
A scam would be you buying a phone from Amazon and getting a brick. BTC is exactly what it describes, nothing more, nothing less.
If you got greedy enough to dump your BTC onto a centralized service for 3% yield, that's on you. As is the decision to buy BTC.
And that is what exactly - A store of value, a 10^n investment, a medium of exchange, a ledger, etc?
Think of it like poker. People lose money playing poker too. Is poker a scam? Nope. You might call it unethical or gambling, but unless a player is cheating, its not a scam. And any participant willingly agreed to the rules before playing.
Same with BTC. If you bought BTC, you willingly agreed to the rules. If you didn’t “win”, that’s on you, not the “game” itself.