Donations Are A Price Suppression Force
In the last few months, we've seen a spat of bitcoin donations and digital asset donations, Canadian Truckers, and The Ukraine War has seen an outpour of generosity but it's not only alturism. It's seen as free advertising for bitcoin and cryptocurrencies, the social capital these projects earn through these donation runs is priceless to many.
It has become somewhat of an arms race to see who will donate the most and get the most publicity for it. Now I will admit I fell for the hype of the Canadian Truckers, I liked what they stood for and I supported them.
Donations can be an attack vector
Only for the operation to not be anti-fragile, instead of having an anonymous operation the bitcoin donators did it publicly and in doing so made themselves vulnerable to attack and attacked they were so the whole drive was essentially pointless as the funds were blacklisted.
If you're not willing to go to jail and be attacked for your operation, why do it publicly? I think it was poor planning or disbelief that governments would come after these funds, a sort of arrogance by the organizers.
Giving no coiners free coins
The truth is giving people free money doesn't get them any further down the adoption curve or get them to value it, anything that humans get for free they will take for granted. If you're sending no-coiners donations, they have no idea why bitcoin is valuable and have no need to value it.
They want fiat or they want goods and services and when you donate millions in bitcoin to people who are value and price agnostic, they are price incentive to dumping. They don't have a cost basis for acquisition so dumping at spot and destroying a thin order book doesn't phase them one bit.
The more people dumping their donations, the more of a price suppression you will have and holders now have to provide the floor for the dumping.
Nothing against donating
Now I have nothing against donating, everyone should be free to do what they want with their money and support whatever cause they like, all I am saying is that the larger the donations, it means you have a price dump waiting to happen.
Personally, I don't mind this since picking up cheaper bitcoin is always on my agenda.
If anything, it could be a good idea to keep donation drives on your calender and setting limit orders in the weeks after if you're keen to pick up cheaper coins.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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Though I often struggle to comprehend the world of crypto (fortunately my husband has a head for it) I will say that I am also not opposed to the dumping in order to grab some cheaper BC.
I actually saw your name in a post by a crazy person, world pro something, haha, poor little guy went bonkers with a dash of temper tantrum. Anyway, thought I would check out some of the satanists. Boy, evil to your core I see XD
LOL its simple, crypto is just online gambling, the rest is all complexity theatre, apart from bitcoin everything else is execution, regulation, centralization and immutability risk all day long
Oh yes lol im the big boogyman from South Africa, born and raised catholic, but if you downvote someone apparently you're a baby eating satanist
Dear @chekohler , From my point of view, you certainly have a different argument than Americans, Europeans, and Australians.
They claim that Bitcoin will advance the world for the better. However, as a non-Western person like me, you have a unique perspective.
I am still trying to understand the world of cryptocurrency, but it is difficult.
You seem to have similar sensibility and intelligence to Asians like me!
I don't like to simply accept what people tell me, I like to go down the path myself even if I am wrong I want to learn by myself
I think that a lot of bitcoin content and commentary comes with a sense of wanting people to buy it, I personally don't care if anyone buys it, I am not here to promote my bags to try and make money I am here to help people understand what they own
I agree with you!
The Americans, Europeans, and Australians I've met so far on Hive also encouraged me to buy crypto.
However, I still do not buy it because I do not know about the relationship, concept, and interest between cryptocurrency and blockchain.
I felt that cryptocurrencies are similar to stocks or foreign currency speculation.
I would never tell you what to do with your money that's your choice, you do as you please, I used to fall for all this token nonsense, but it didn't work out for me, so I got rid of all of them and focus only on bitcoin
I understand! I'm just curious about the relationship between cryptocurrency and blockchain and how they make a profit.
From my point of view, you seem to argue that Bitcoin is the most stable of all cryptocurrencies.
Bitcoin isn't a cryptocurrency, cryptos are all centralised services run by tech companies
If you want to check out my bitcoin content you can find it here - https://thebitcoinmanual.com/
Thank you for your help!😄