After dogcoin, Shibcoin, turtle coin and other “animal coins” dominated the media headlines and search lists day after day, sucking up a lot of attention and money, the old cryptocurrency community is angry.
Since the official birth of Bitcoin in 2009, some of the earliest people who were concerned about digital currencies have been following the ups and downs of this circle for more than ten years. What they didn’t expect was that digital currencies, which they had painstakingly researched and promoted for many years but always hovered on the edge of the mainstream, would burst into the limelight in 2021 because of a group of strange and bizarre cottage coins.
The “boom” didn’t make many old cryptocurrency people happy, because in their eyes, this is not the right path, but a divergent path.
A day in the cryptocurrency world is a lifetime on earth. While many ordinary people still do not understand what digital currency is, the war of division within the circle has been quietly drawn: on one side are “old coiners” who hold a lot of mainstream coins such as bitcoin and ethereum and insist on holding coins rationally, while on the other side are “new coiners” who wander around various popular concept coins and play the game of drumming. “New cryptocurrency people”.
The new cryptocurrency people shouted, “All the leeks in the world unite, let’s defeat the digital currency in the old world together and create a new world belonging to the “people”. Old cryptocurrency people, on the other hand, stand hand in hand to form a line of defense, firmly wanting to defend the “dignity” of digital currencies, and make a big push to crusade.
The two sides are fighting from the social media “war of words” all the way to the trading market “real war”, for a time, the sword and shadow of fire, the scene is lively.
The Two Camps: “Bitcoin Faction” and “Dogcoin Faction”
Nowadays, when you browse the topics about digital currencies in major social media platforms, you will find that netizens have been divided into two camps, one camp upholds “faith investment” and supports cottage coins represented by dogcoin, while the other advocates “value investment” and supports cottage coins represented by bitcoin. Both groups have now found a spiritual leader in Elon Musk and Barry Silbert.
Who is Barry Silbert? He is the founder of Grayscale Fund, the world’s largest cryptocurrency investment fund. Grayscale’s investments are all primarily focused on mainstream coins such as Bitcoin, Ether, and Litecoin, and currently has nine single-class asset trusts on mainstream coins and one portfolio investment fund on large-cap coins.
Among them, Bitcoin Trust (GBTC) is the largest and longest-standing fund under Grayscale. Since the fund’s inception in 2013, Grayscale’s bitcoin position has been increasing every year, and as of May 11 this year, Grayscale held 653,100 bitcoins with a market cap of over $30 billion. Of course, cryptocurrencies like dogcoin and shibcoin are not on top of Grayscale’s investment list, so naturally, Grayscale has become the “representative” of many old cryptocurrency community people who believe in mainstream coins.
So many people may ask, “Didn’t Tesla also invest heavily in Bitcoin, so why is Musk now the spiritual leader of cottage coins?
The Silicon Star people believe that Musk’s intention at the beginning was perhaps not to antagonize Bitcoin. Bitcoin is an investment for Musk, but dogcoin is a game, but I didn’t expect the game to become a movement as it was played. Because many ordinary people have gained a lot of real money from Musk’s “shouting” for dogcoin, Musk has unwittingly become the core leader of the dogcoin faction, whether he meant to or not.
Moreover, in the previous sensational Game Stop war, Musk chose the side of retail investors between institutions and retail investors, and this time, among bitcoin and dogcoin, Musk chose dogcoin as his “son”, what can be more provocative than such a “rebellion What could be more provocative than such a “rebellion”? And once he was vaulted onto the altar of “For the people”, Musk couldn’t get off for a while.
A star can start a fire. Having found the core of Musk, a new retailer force began to gather quickly on the digital currency field. With the rapid rise in popularity of various cottage coins represented by dogcoin, the bullish momentum just ushered in by mainstream coins such as bitcoin began to go out, and even some old cryptocurrency people began to abandon mainstream coins for the embrace of more exciting cottage coins.
The two sides began to dislike each other on social media platforms. The old coin people angrily denounced the new coin people as ignorant and gamblers, while the new coin people disliked the old coin people as outdated and self-interested.
The two sides are “fighting” and the situation is escalating
Recently, the confrontation between the two factions has escalated from a “war of words”.
In early May, Bitcoin bigwig and founder of cryptocurrency merchant bank Galaxy Digital, Mike Novogratz, said in an interview that buying dogcoin was an act of pure ignorance and advised investors not to buy dogcoin and to sell it if they had it. Shitcoin,” a detailed comparison of dogecoin and bitcoin, pointing out that the investment value of the two is completely different: one is a worthless “terrier” and the other is a veritable “digital gold”.
On May 8, Grayscale also entered the fray in high profile, with Barry Silbert tweeting several times in a row that he would start shorting dogcoin significantly, and that he would donate all the proceeds he made to financial education and bitcoin-related causes. He tweeted, “Okay, dogcoin guys, welcome to the crypto world! But now it’s time to convert your dogcoins to bitcoins.” Barry’s statement was also seen as a “declaration of war” from the old cryptocurrency man to the new cryptocurrency people.
After that, Dogcoin plummeted by more than 70% in two days. In previous media reports, it was said that the plunge was due to Musk calling Dogcoin a “hustle” on Saturday Night Live, but in fact the real reason behind it was related to the shorting of Greyscale.
In fact, when you watch the whole show, you will understand that Musk is not deliberately suppressing dogcoin, and the so-called hustle is just a kind of flirtation in a funny context. The grey shorting of dogcoin has even pushed Musk to the “dogcoin insurgency” team.
The company’s main focus is on the development of a new product that will be available to the public.
For example, he tweeted on the 11th asking netizens if Tesla should start accepting dogcoin as a payment method. He followed that up with a tweet expressing concern about the rapidly increasing use of fossil fuels in bitcoin mining and trading, announcing that Tesla would suspend the use of bitcoin to pay for cars and saying, “We’re also looking for other cryptocurrencies that consume less than 1% of bitcoin’s energy. ” Even in response to comments from users, it was once vague enough to signal that Tesla had sold its bitcoin holdings.
Under this series of serial operations, the price of bitcoin plunged in response, dropping more than 20% in a few days and touching a 3-month low. Although Musk soon came out to dispel the rumors, saying that Tesla is not selling any bitcoin, in the eyes of many dogcoin followers, Musk has undoubtedly helped them to avenge the shorting of dogcoin by Greyscale.
The netizens have flocked to the accounts of Greyscale and Galaxy Fund to sneer at the idea of shorting dogcoin, but save your breath, you out-of-date old money.
Bitcoin and dogcoin movements over the past week, image screened from robinhood
Old Coiners vs New Coiners: What is the Value of Digital Currencies?
The main reason why the war in the cryptocurrency world is still raging is because digital currency itself is still a controversial concept.
In the eyes of rationalists, determining whether a digital currency has investment value depends on what the basis for its creation is. For example, some people will judge it based on PoW (Proof of Work). Bitcoin mining uses the PoW mechanism, which simply means that energy is exchanged for coins, which has a cost. Some will also be judged based on PoS (Proof Of Stake), the more you hold, the longer you hold the more revenue you get, just like the equity and dividends in the stock market, which also has value.
But these bulls and snakes coins that pop up in the market today are some so-called air coins in their eyes, completely speculative and money oriented, without any physical support, so why not short them and keep them for the New Year?
A netizen who claims to be a veteran of the cryptocurrency world has loudly denounced on Twitter, “This is a ridiculous game being played by a group of ignorant speculators who don’t know what digital currency is or what value investment is, and they are the stumbling block in the great development of digital currency. .” But it was quickly overwhelmed by a mountain of backlash comments and emojis.
New cryptocurrency people questioned to what is the value of digital currency? The value of everything comes from people’s consensus. For example, how valuable can a diamond be by itself? It’s not because people give it an external expectation, forming a long-standing buying and selling relationship, it becomes a highly valuable thing.
When bitcoin and ethereum started to catch fire, weren’t they similar to today’s “dog coins” in the eyes of people in other traditional financial markets? We do not talk about the second brother, your yesterday is our today, your today is our tomorrow, the wheel of history always rolls forward.
Image from a 2018 New York Times story, copyright © 2018
Some people stressed that maybe dogcoin started out as a joke, but then it became something very real and many people are using it to do wonderful things and provide help for fun and good causes, so why shouldn’t the market embrace it. A true digital currency should belong to the people, not to the few.
In their eyes, the reason why there is such a big backlash from the old cryptocurrency people is simply because ordinary people have moved their cake. For example, take Grayscale as an example, who are its investors? Institutional investors, family offices, and rich people, with institutional investors accounting for more than 87% in 2020, arguably the Old Money portfolio of the digital currency scene.
And the retail investors are thinking that instead of letting these rich people slice and dice wave after wave, they should all come together to spread the money and go on a spree. There was a highly liked message under Barry Silbert’s tweet, “We are real people and investors too, you take our bread to fill your table, we are antagonistic.”
So essentially, the split in the cryptocurrency world today is similar to the Game Stop incident in that they both reflect a split in the class, and both Game Stop and Dogcoin are the subject of a challenge by retail investors to the powerful class, an Internet game in which all people participate one after another.
The institutional share of investors in grayscale funds will be nearly 90% in 2020, the image is screened from the grayscale public report
One is an old giant in the monster circle, and the other is a new beast that has been mutated by radiation.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/cryptocurrency-civil-war-launched-bitcoin-vs-dogcoin-who-will-have-the-last-laugh/
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