TD₿: On Altcoin Valuation by Jimmy Song
TL;DR Given the very skewed incentives, the only reasonable thing to do is to treat every altcoin as a scam until proven otherwise.
Hey Bitcoiners,
As I’ve been warning about for months, the Luna/UST algorithmic “stablecoin” has imploded.
This debacle, as well as the broader macro environment, has dragged down the price of Bitcoin along with it.
On bloody days like today, it’s best to take a deep breath and understand that in the long run, this is good for Bitcoin.
The risk of this stablecoin blowing up will soon be behind us, and Bitcoin will remain the same as it ever was…a highly antifragile system that provides digital sound money.
As Luna blows up, it’s important to note that all these other cryptocurrencies are no better. They too will fall one by one because they lack Bitcoin’s decentralization and security.
Jimmy Song wrote a great post called “On Altcoin Valuation” that looks into these altcoin scams (11/14/2019).
In the end, this Luna/UST debacle will be a blip in Bitcoin’s history.
For bitcoiners — this only represents an amazing opportunity to stack sats at cheap prices.
Tick tock next block,
Cory Klippsten
PS - I got a chance to go on Coindesk.tv to talk about Luna/UST. Watch it here.
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