Cointime

Download App
iOS & Android

Why, Not Bitcoin: A Couple More Reasons

Validated Individual Expert

I found more reasons why, in my eyes, Bitcoin is such an unattractive asset. Previously, in Bitcoin Is Finished, I laid out a conclusion — a list of pros and cons — someone should expect if they decided to buy Bitcoin.

In that article, my tone ended somewhat neutral, despite the controversial title. However, at this point, I have to say goodbye to that neutrality. Bitcoin is crap. Let’s say, nowadays I found the cons outweigh the pros by a lot. And when there are simply other good crypto assets to pick, why shall we settle for less?

Problematic assets owned by problematic entities

The year 2023 started with another unsightly crypto drama. The Winklevoss twin delivered an open letter through Twitter for DCG’s Barry Silbert.

The letter accuses Barry, who is in control of a large quantity of BTC through the GBTC trust, of ghosting the Winklevoss twin. Barry’s company apparently owed Geminie earn a whopping 900 million and hasn’t planned anything to pay the debt back.

After what the space went through in 2022, I feel like I’m fed up with another happenstance of grown freaking ass men (but a manchild cryptobros) bickering with each other and embarrassing the industry further.

This drama raises a red flag for Bitcoin.

Both Winklevoss are large bitcoin holders. Winklevoss is the OG of OGs, owning somewhere around 70k BTC they acquired long ago. Barry’s company, DCG, controls a large quantity of BTC through the GBTC trust, their BTC derivative products. They are the largest owner of BTC just after Satoshi Nakamoto. However, the nature behind their asset management is quite sus.

For one, Barry refused to share the wallet addresses when GBTC Bitcoin is held. Even with the proof of reserve pressure major custodians dealt post-FTX crash, DCG is quiet on their stance. Not to mention Genesis, DCG’s trading arm, is currently considering bankruptcy.

Again, god knows what’s the condition of their Bitcoin right now. I am talking not just about whether the asset exists or not, but about which financial debauchery the asset got tied to due to its large holders leveraging the heck of it. How much debt euroboros both parties involved in intermingling their assets.

Do you know who are the other problematic large holders of BTC? Saylor. The one who uses his company shares as collateral on their seeming always bad-timed BTC purchase? The unhinged Bitcoin leader, already a reputational problem I mentioned in my previous article, is another time-ticking bomb for Bitcoin.

This is why, if I want to buy Bitcoin, I want it only after when the DCG drama is over — they’re bankrupt for real and the whereabouts of their Bitcoin, and liabilities, are known. Maybe also after Saylor liquidated, and freaking mtGOX finally delivered. Ah, I forgot about mtGOX.

At this point I’d argue that Solana is in a much better state, having its toxic holders like 3AC and FTX completely wiped out.

I think my one major disinterest in BTC is this. Being totally left in the dark. I have a huge suspicion regarding the current BTC rally. You can’t tell me with a straight face these pumps are organic. There were no fundamental reasons for such a rally, and practically there was no major market maker after FTX was gone, leaving Barry’s trading arm as the sole ‘pumper’.

In fact, the upcoming news we expect is nothing but unfavorable (The fate of DCG, Genesis — their bankruptcy and SEC investigation, Winklevossess’ Earn customers, and the market in general ahead of another rate hike next month.)

What if it was Barry using the last of his might is pumping the market one last time? Seeking that exit liquidity. One of my suspicions is how Bitcoin dominates the rally, instead of being evenly widespread among coins like typically when Alameda/FTX was still market making. It raises the suspicion that whoever pumping, they only have funds for BTC but no other. Which why my suspicion goes to the distressed DCG.

If you have been in the crypto space for so long, you’d know Barry Silbert is not the one to trust. Having such a person in control of the 3% Bitcoin circulation is a net negative to the asset itself.

The number of active wallets has been unchanged since 2021

Unrelated to the current drama, but something that I am very surprised with as a found out.

Not only did the Bitcoin price peak in 2021, but apparently, so is the number of its active addresses.

This is why I am surprised. When other blockchains enjoy the wild increase of active wallets, Bitcoin has, as quoting Delphi Digital, gained nothing and lost nothing,

Active wallet peaked during Q1 2022 and has never reached another ATH again since.

Compare that to Ethereum which, starting at the same point enjoyed multiple growths over the course of one full market cycle. Even as activities flatten over the course of 2022, there were some days when activities went through the roof Ethereum created a new all-time high on active addresses.

As much as I’d like to have a good reason to buy BTC, every time I always find something discouraging. Not to mention that lately, with BTC maxis, a lot of the “advocates”( inFlueNcer) have turned into something weirder. Talk about being nonsensical CEXs fudder or covid deniers and other radical right-wing advocacy. They’re typically strange like that, but lately, it’s like they’re on steroids. Seriously it was hilarious how these people pivot their brands. All that makes normal people (they’d call NPC) uninterested to be a part of such an unhinged community.

https://medium.com/crypto-24-7/why-not-bitcoin-a-couple-more-reasons-95a6dc3a2277

Comments

All Comments

Recommended for you

  • A Total of 37,212.18 DMD Permanently Burned Over the Past 7 Days

    July 9, 2026 — According to the latest on-chain data released by DMDAO, a total of 37,212.18 DMD has been permanently burned over the past seven calendar days through the protocol's predefined trading and wealth management burn mechanisms.

  • Whale Transfers 1,133 BTC to Coinbase Prime, Valued at $71.48 Million

    According to Onchain Lens monitoring, a whale transferred 1,133 BTC from Coinbase to Coinbase Prime through an intermediary wallet, valued at $71.48 million.

  • U.S. AI Chip Stocks Decline Before Market Open, Intel Falls Over 3%

    On July 7, U.S. AI chip stocks experienced widespread declines before the market opened. Intel dropped over 3%, while AMD, Qualcomm, and NXP fell more than 2%. TSMC, Broadcom, and Tesla decreased by over 1%, and NVIDIA declined by 0.7%.

  • China's Central Bank Increases Gold Reserves for the 20th Consecutive Month

    As of the end of June, China's gold reserves stood at 75.44 million ounces (approximately 2,346.446 tons), an increase of 480,000 ounces (about 14.93 tons) from the end of May, which reported 74.96 million ounces (approximately 2,331.52 tons). This marks the 20th consecutive month of gold accumulation.

  • China's Foreign Exchange Reserves in June at $341.6262 Billion

    On July 7, China's foreign exchange reserves for June stood at $341.6262 billion, a decrease of $26 billion from the end of May, representing a decline of 0.75%, with expectations set at $343.2 billion.

  • U.S. Storage Stocks Drop Pre-Market, SanDisk and Micron Down Over 4%

    On July 7, U.S. storage concept stocks collectively fell in pre-market trading. Western Digital dropped over 5%, SanDisk and Micron Technology fell over 4%, Seagate Technology declined over 3%, Rambus fell over 2%, and SMI fell over 1%.

  • U.S. Stocks in Optical Communication Sector Drop Pre-Market

    On July 7, stocks in the optical communication sector of the U.S. market collectively fell pre-market. Astera Labs dropped over 4%, while Marvell Technology, Credo Technology, and AXT Inc. fell more than 3%. Tower Semiconductor, MaxLinear, Corning, Applied Optoelectronics, GlobalFoundries, Lumentum, and Qorvo all declined by more than 2%. Coherent, Nokia, Amphenol, and Broadcom dropped over 1%.

  • Pre-market Decline in U.S. Storage Stocks

    In pre-market trading, U.S. storage concept stocks experienced a widespread decline, with Micron Technology falling by 4.8%, SanDisk dropping over 4%, Corning down more than 2%, and Intel decreasing by over 3%.

  • Two Departments: Support for Reinsurance Institutions to Increase Capital and Issue Supplementary Capital Tools

    On July 7, the National Financial Supervision and Administration Bureau and the Shanghai Municipal Government released several measures to accelerate the construction of the Shanghai International Reinsurance Center. Among these measures, they proposed to enhance the quality and efficiency of the reinsurance industry, support reinsurance institutions in increasing capital and expanding shares, and issuing supplementary capital tools to improve the capacity for internal capital accumulation and external capital supplementation, thereby strengthening the reinsurance industry's capabilities. The initiative aims to guide the insurance industry to focus on major national projects, strategic emerging industries, and livelihood security, consolidating insurance and reinsurance underwriting capabilities to enhance risk protection levels. It also supports reinsurance institutions in leveraging their professional technical advantages to assist the insurance industry in reducing risk.

  • Sources: Saudi Arabia Plans to Expand Oil Pipeline to Red Sea, Increasing Capacity by 2 Million Barrels Daily to Bypass Strait of Hormuz

    On July 7, five informed sources revealed that Saudi Arabia is considering expanding the crude oil pipeline capacity to its western coast on the Red Sea, allowing Saudi Arabia and its neighbors to transport more oil without passing through the Strait of Hormuz. This east-west pipeline, built in the early 1980s, has gained strategic importance since the outbreak of the Iran war in February and the disruption of shipping in the Strait of Hormuz. The pipeline can deliver up to 7 million barrels of crude oil per day to the Red Sea port. The CEO of Saudi Aramco stated in May that approximately 2 million barrels are supplied to west coast refineries, while about 5 million barrels are for export. Sources indicate that Saudi Arabia is in preliminary discussions with some neighboring countries regarding the pipeline expansion, aiming to add about 2 million barrels of pipeline capacity per day. It remains unclear whether Aramco's planned expansion involves upgrading existing infrastructure or constructing new pipelines. One source mentioned that the expansion plan also includes a smaller refined oil pipeline. Two sources indicated that the expansion scale could range from 1 million to 2 million barrels per day, with refined oil also being considered. Another source stated that the project would take several years and cost billions of dollars, requiring adjustments to Saudi crude pricing mechanisms.