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