Me, Simba and Satoshi
Dear inhabitants of the crypto planet! I greet you all with respect and love!
As someone who doesn’t like adjectives and too fancy words, I want to introduce myself to you. I do not think that my name and surname are important. Any name-surname combination can belong to me in a world with a population of approximately 8 billion. Actually, this doesn’t matter in the least. Moreover, privacy is our red line, and disclosing privacy is an act against our anarchist spirit. — From Satoshi Teachings -
I love coffee and beer. I live with my cat Simba. I don’t know whether he belongs to me or I belong to him… Maybe that’s the major reason why I love him: He doesn’t obey! He has distinct and strict rules and none of his needs allows him to reveal a weakness to me. My noble son!
I’ve been playing aeo2 for years. I can say that I am a pro aeo2 player. I think building a huge army with scarce resources and strategizing according to the opponent and the map is what attracts me the most. I’m pretty sure that I will play this game until the day I die.
I got acquainted with Bitcoin in 2013. And then I met Ethereum. I’ve done mining for both coins. There’s nothing I haven’t tried, or no adventure I haven’t experienced in the crypto market. Countless battles, endless strategies. Sometimes we experienced rekts, sometimes rug-pulls. Yes, just like you, I too invested in ICOs that saved the world in 2017. I guess I’ve experienced everything that one can go through. However, I have grown to maturity for the last 2 years. I think the impact of the bear market, which started in 2018, is huge. As I had the BTC-USD portfolio throughout the bear market, I had the opportunity to consume coffee and beer a little more calmly. Of course, in the meantime, I went deep into the philosophy of the industry. I briefly told you about myself, something of no importance. Now it’s time to talk about my ideas on some topics.
Since I think I am addressing a community familiar with the crypto market, I assume you already know some of the terms, so I will go through them quickly and not explain every one of them in detail. However, there are some details that are worth remembering even if you know them very well. The most important of these is that the reason for the existence of the crypto market is Bitcoin; and Bitcoin’s “purpose for being” is the inevitable need for a financial revolution.
The inevitability of revolution stems from the degeneration in the current system. While the money to be printed was indexed/based on Gold until 1971, this was cancelled with Bretton Woods. Since then, the dollar is unrequited. Yes, it is created unrequitedly. Ink, paper and verdict are all we need. And of course, a strong army that will maintain all this order.
With these processing errors that started in 1971, it was possible to come only until 2008. However, things came to such a point that there occurred a great financial crisis in 2008. Think of creating money as doping, in other words, steroids. The more you are exposed to it, the more you need it. It’s a vicious cycle. Creating more money caused inflation and income inequality. As money was created, there was no choice but to create more of it. Although the FED tried to raise the interest rates from time to time, this time, the illiquidity in the markets created a different problem. This vicious cycle continued and still continues. And the last big printing was due to COVID. Going back a little, in September 2008, the system suffered a major crisis. And bingo! In October 2008, Bitcoin Whitepaper was published by Satoshi Nakamoto. What a coincidence!
In fact, Satoshi wanted to say the following in summary:
1- The current order has become too old to be sustained.
2- Printing money should not be a power in the hands of a particular family, government or individual.
3- The printing of money should take place in a decentralized structure and anyone who wishes should be able to get involved in this mechanism.
4- Mathematics should be trusted, not people or institutions. Algorithms are fairer than human beings.
What do cryptocurrencies exist?
Actually, the answer depends on which cryptocurrencies we ask this question for. Let’s talk for Bitcoin. In terms of the purpose of creation, Bitcoin is not for trading purposes. It is there to be used. According to Satoshi’s vision, the new unit of value is Bitcoin, the highest-quality money. You will buy it, keep it and wait. You will not sell it unless you need to do so. And the day the world is ready for this, you will transfer value with Bitcoin. Actually, the vision is that simple, but people’s greed and ambition to earn more have created the concept of “crypto trading”. In a way, this is inevitable and necessary, by human nature. All in all, the recognition of Bitcoin has increased in parallel with the price increase.
Bitcoin demands loyalty!
After cryptocurrencies and tokens became tradable, thousands of new projects emerged. Some projects were reset and some project teams ran away. Even the websites of the majority of the old projects are giving the error “404”. You are lucky if you’ve had this experience. Because such bad experiences can bring you one step closer to what the “actual” thing is.
Here’s what Satoshi meant: In total, 21 million Bitcoins will be mined, and Bitcoin mining will continue until 2140. Growth of the world population and increase in fiat money created will in any case be higher than the growth rate of Bitcoin production. In other words, the amount of Bitcoin will become scarce over time. If you know its value, it will protect you against inflation and make you wealthy. If you do not know its value, you can open an exchange account with the reference link of any Twitter influencer and start trading. Especially if you are making leveraged transactions, it won’t take long to completely lose your money and accuse Satoshi of being a scammer.
Is DeFi the future?
I don’t know because I did not come from the future. However, my experience tells me to look at it from several different angles. First of all, in order to examine the DeFi concept, it is necessary to master the concept of classical finance in general. You don’t need to be an economist to do this, but if you ever got a loan from a bank, your experience may shed light on you. There are many subtitles within the concept of DeFi: Staking, Farming, Lending & Borrowing, etc.
Let’s take a look at the concept of staking. Of course, it is a logical approach that the coins/tokens you hold generate a passive income rather than just sitting in your wallet. However, I identify this with an extremely capitalist order. A system where those with more money earn more. The operation of staking systems for tokens, on the other hand, is unreasonable in my personal opinion. That is to say, you pay money for and buy the tokens that developers create very cheaply after a few clicks. In return for locking this, you are given these tokens created free of charge. That’s good as a passive income, but price falls in a locked staking system can put you at a loss, even if the number of tokens you have will increase. If marketing, team tokens, etc. also become involved, the situation may blossom into some other dimension.
Let’s take Lending & Borrowing. You went to the bank or asked a friend for a loan of money. The bank offers you a repayment schedule and gets it approved. In the first place, the bank tries to understand whether you are capable of repaying the debt and for what purpose you will use this money. While lending money, it is aimed that the money to be lent will go into production, employment, that is, the real economy and create value. Even though a business cannot be established and employment created with the borrowed money, the products to be purchased with this money can also contribute to the real economy. When we look at it from the DeFi perspective, this is not the case. At least for now.
None of the alternative systems is perfect. Speaking for DeFi, this rebellion was a necessity. “This XX project is experimental”, a warning sentence that we see in most of the DeFi projects, is exactly about this. For now, it’s just a simulation. We’ll see where child prodigy Vitalik and ecosystem will take this.
Conclusion: Support DeFi — Vitalik & HODL Satoshi
See you in our next article: Behind the scenes of the Dogecoin incident — Elon vs. Bitcoin — Institutions