ADA Whale Unveils 10 Key Insights on Cryptocurrency’s Role and Potential
On 3 December 2023, the pseudonymous Cardano influencer “ADA Whale” shared a detailed post on social media platform X, outlining their personal belief system about cryptocurrency in ten succinct points.
1. The Essence of Crypto as Currency: ADA Whale begins by stating that cryptocurrency was always about creating digital coins, which gain real value based on popular adoption and the economy established around them. They emphasize that cryptocurrencies should be viewed as digital forms of currency, distinct from stocks or other financial instruments, due to the lack of shareholder rights or legal recourse.
2. Importance of Fair Launches and Price Action: The influencer highlights the significance of fair launches and brutal price action in the early stages of cryptocurrencies like Bitcoin, Ethereum, and Cardano. They note that post-2018 coins, which often had over 80% insider ownership and tightly controlled price ranges, are unlikely to achieve long-term success due to their skewed distribution models.
3. Evaluating Currency Valuation: ADA Whale suggests that cryptocurrencies should be judged like fiat currencies, focusing on factors like monetary policy, security, stability, and economic sustainability. They draw a parallel between preferring stable and secure fiat currencies in the real world and choosing robust cryptocurrencies in the digital realm.
4. The Concept of Digital Economies: The post discusses how digital economies form around base currencies like ADA, allowing individuals to become part of a network state and engage in various financial activities. This concept underscores the importance of a functional governance system and a vibrant digital community.
5. Technology as Infrastructure: ADA Whale views technology as the essential infrastructure for a thriving digital economy. They compare the scalability of a crypto network to a country’s transportation system, suggesting that inefficiencies can lead to users seeking alternatives.
6. Scalability’s Dual Nature: The influencer argues that scalability is overhyped in the short term but underestimated in the long term. They believe that current settlement speeds in cryptocurrencies are adequate for most financial use cases and that Layer 2 solutions like Hydra or Lightning are suitable for specific applications like gaming or payments.
7. The Drawbacks of Hyperfinancialisation: ADA Whale criticizes the excessive focus on DeFi in the crypto space, likening it to hyperfinancialised economies that primarily engage in token trading. They advocate for a balanced digital economy with diverse sectors, as seen in Cardano’s ecosystem.
8. Focusing on the Future Over the Past: The influencer encourages looking beyond the controversial aspects of crypto’s history and focusing on the current state and potential of different protocols.
9. Crypto as a Gold Rush: They describe the crypto space as a gold rush, where maximalism and self-interest dominate. ADA Whale predicts that a handful of digital economies will eventually lead the space, emerging in parallel.
10. The Role of Community: Finally, ADA Whale stresses the importance of community in building and sustaining the crypto ecosystem. They view community involvement as crucial for the success and enrichment of the digital economy beyond mere speculation.
In concluding their extensive discourse, ADA Whale clarifies that the points shared are not to be taken as absolute facts, but rather as personal conclusions drawn from a logical assessment of facts and events in the cryptocurrency space over the last 5 to 10 years. They acknowledge that individual experiences and interpretations may vary (YMMV – Your Mileage May Vary) and encourage readers to adopt a similar critical approach.
ADA Whale advocates for more people in the crypto community to develop and express their own conclusions based on logical reasoning and an objective evaluation of facts. They believe that such an approach, which is open to challenge and scrutiny, would significantly enhance the quality of discourse and understanding within the cryptocurrency space.
Sunday rant. My personal belief system around crypto summarised in 10 points. I probably missed some but this is how I think about things:
1. Crypto was always about money printing. Groups or individuals created digital coins and after that, depending on popular adoption and the…
— ADA whale (@cardano_whale) December 3, 2023
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