That’s how it feels, doesn’t it? It felt like cryptos had found its bottom and slowly started to rise again, while at the same time we were secretly discovering the booming gambling market inside EOS! Well, WRONG! Go back to the cotton fields peasants! Also check out my artwork in the header. It’s worth propbably around 5000 EOS. I take bids if you want ownership of it. It’s made by the pretty famous Eosmastéring.
So what’s going on? Why are cryptos tanking, and why are the EOS dapps tanking?
To keep it simple, Bitcoin Cash is forking in about 5 hours and Craig Wright is threatening to kill Bitcoin with a fatal bug he claims to have found. Also, Bitcoin and Bitcoin cash and all other POW (proof of work) projects for that matter are or could be completely centralised. With Chinese mining pools controlling something like 70% of Bitcoin and 6-7 mining pools controls Bitcoin completely, people that has malicious incentives beyond economic ones could potentially start to mine empty blocks, double spend etc even without 51% hashing power. This on top of the huge electrical issue with Bitcoin, things are not looking to good it seems. There seems to be two big wars happening at the same time with a civil war in Bitcoin Cash at the same time fighting with Bitcoin Core.
Bitcoin Vs EOS
Now, EOS was and is probably still accused of being centralised. Most of the accusations were of course based on a lack of knowledge about how DPOS works. 4 mining pools make up 50% of Bitcoin mining pool and 3 pools make up 50% of Ethereum, whereas the 21 Block Producers that are significantly more than the number 4 and 3 as well has been accused of being centralised. I find that weird, because censorship resilience and decentralisation increases with the number of mining pools.
Still, that is not good enough for many. They continue with “but why would people care and take the time to look into each BP and vote for the right people?” It’s of course a valid question, but one mistake less intelligent people do is to assume that others has not thought about this. And of course this was solved pretty quickly with the use of trusted proxys. And we also see the ability of people to mobilise and vote once the situation calls for it, like we saw with the recent CPU issue. DPOS (delegated proof of stake) is also a much fairer system because anyone can vote in and out of a pool of BP’s. Many seem to misunderstand and believe that there are only 21 BP’s. Yes, there are 21 BP’s that produce blocks, but if they get voted out because they don’t do anything, or they don’t upgrade their hardware etc, other BP’s outside the top 21 will be voted in. So number 22 will hop in for number 21 and so on. And we’ve seen examples of the community voting out BP’s that did not spend some of the money they made on upgrading their Hardware, and when people raise concern they get their act together or they are voted out. So far this system of transparency and fairness seems to work much better than the chaos that rides the Bitcoin “community” if there is such a thing anymore. 3-4 BP’s with government subsidised electricity and a lot of capital in China controlling the network..hmmm..not exactly my idea of decentralisation.
So all this drama of course spreads to the entire crypto space. Everything is still “pegged” to Bitcoin and wherever Bitcoin goes, so goes everyone else. For now at least. Even the “bull market within a bear market” that we have been talking so much about lately with the gambling dapps seems to fall over one by one. Hacks, attacks and exit scams. And I think I’ve noticed a pattern..people rush to the next Betdice clone and immediately start to mine, then they wait for some of the megawhales to come and join, and then they nag about “when dividends” on Telegram in hope of getting some mad ROI. This has worked for me a couple of times, especially with EOSjacks. I was early and spent about 10 EOS mining it before Liketerryfox came which resulted in some crazy dividend payouts. I think I got 10 EOS the first payout, then 8, 7 but now it looks to be more like 0,3. Why? Because the whales stopped mining and left the project for dead. I feel that that is whats going on with all of these now ( I guess EOSmax is the current hype. I expect the same to happen here) It does however seem like the non-whales continue to gamble a little bit as it is the volume that has fallen greatly and not mainly the userbase. But I’m not sure how they measure users on Dappradar but I suspect the numbers are daily visitors and not betters. And the daily users could also mean mostly people checking their dividends or rather..lack of.
And the bottom line is really this, that you should be prepared, I’m not saying it WILL happen, for a prolonged bear marked and another 50% drop from these levels is not impossible. If we were to replicate 2014 we will continue down another 50% from here. And with this mess I think we might. The big whales are in control, no matter if it’s in the Bitcoin mining pools or on EOS gambling dapps. And it will continue to be volatile, and a lot of people will lose money, win money or even if they stay passive continuously see their crypto lose value. But then come 2019-2020 or even later, and it could all jump up 100x again. Who knows. One positive thing for sure is that the list over cryptos will not look the same after this. Shitty projects will be completely wiped out, and those who remain will have proven themselves to withstand the turbulence. So expect CMC to look very different in 6 months or a year. I think, at least.
If you liked this you can also check out some of my other articles!
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