During the last few days, I heard many discussions from people who do not mind what happened around them. Bitcoin is dead again. Altcoins will rule the market cap, and DeFi is the best to invest.
And as we have seen today, they believe this was a mistake. As usual, the whole market crashed.
Why? Because people do not understand how the markets work! That’s simple.
You believe Bitcoin Dominance is around 50% because Coinmarket Cap says? The truth is that absolute dominance is if you recalculate without stable coins and tokens who bind bitcoins for their perspectives. This irrational aggregator for DeFi markets and lendings, for example. Because lending is not the nature of Bitcoin, it is self-responsible in making advantages without debt. That’s the truth.
The market dominance of Bitcoin is in real around 75%
And if you see the graphs below, you understand Altcoin season is just a margin tip during the change if Bitcoin is going up and down in volatility. After a short time, the market accumulates and follows Bitcoin directly. And here we see the results. Everything is down because Bitcoin is the measure of success in asset management. Every investor holds Bitcoin, not Altcoins. They use Altcoins as collateral for short-term corrections.
Taxes and Miner shutdown led to a distrust of Institutional investments. And those investors sell-of very fast because they do not understand the markets. Lack of knowledge again is the problem.
Tax in the US – a Bitcoin killer?
The world of Biden is a non-commercial view of a different system. It means everyone has to share, but it is only given back at a 25% stage. John McAffe long ago named why the IRC said it had lost $1 Trillion of taxes and the gifts presented to Microsoft, Google, and other companies. On the one hand, it worked well for the US because the debt system was overflowing in the pandemic, and real hope relied on Biden to mark a new politic of change.
Meanwhile, the world has seen how a going to old statutes about thinking collectibles from capital gains of people own more than $1Million in revenue by taxing them with 43% of capital gain control tax. Mean less to say it will kill the flow of money and will be replaced by governmental control. The markets were acting heavenly during the pandemic after this news.
The fault in this opinion is disregarding Europeans who wanted to invent a capital gain tax for the rich in Europe. It led to situation companies left the countries and heading to off-shore solutions.
But since no one understands the game of money: If you go this way, cutting half the winnings for state interest, you will break down the money system, and of course, Bitcoin holders will never again move to exchange and cash their Bitcoins privately.
The winnings of companies are tomorrow’s debts because the money supply doesn’t change without inflation and printing money. Money always stays the same. Bitcoin and Cryptoassets were creating a value that was powered to be an own economy. Still, more debts are necessary to print more fiat to support the rules that say you have to cover every asset on the deal with fiat through the exchange. Both old school models and the pandemic itself will create during the presidential time of Biden one of the most significant recessions to the US of all times. Many prominent economists predict this as a boomerang effect fighting a crisis with debts in a broken system and filling it up with new assets instead of using a new economic platform.
The fear of institutional investors is big. But Biden’s assumption is only a wish today. It could easily take away from the table as congress is going into a new age of democracy and monetization.
Actually, in the US, everything in crypto is a taxable event. If you leave your asset one year, a new 15% interest will be taken if the winnings are less than $400,000. If you earn more, the claim will increase. Holding a million in assets is the first capitalist rule since Warren Buffet. Biden is killing the idea and makes a dangerous mistake.
As long it is only a talk, and the miners will come back to work for Bitcoin soon. Recovering is only a matter of one week. And Biden has a problem. Most Americans do not support the politic in capital gain control for rich people. This could become an exciting conflict with democrats. It will take a long time to get a majority forcing the capital gain renewal.
Written by : Prof. (Dr.) h. c. Joerg Molt