You can love it or hate it, but some of the biggest Bitcoin-Forks still have a market capitalization of hundreds of millions or even billions. Data represent this Trend well:
Bitcoin to Cash has a market capitalization of $ 4.45 billion.Bitcoin Satoshi Vision has a market capitalization of 3.38 billion dollars.Litecoin has a market capitalization of $3.05 trillion.
And many more…
Although the proponents of these projects argue that the Coins are worth, expected to be a Top Investor in the space, that the value will flow from these Chains in two markets: Bitcoin and decentralized financing, short-DeFi.
Bitcoin and DeFi could benefit from the Fork to Die
Jason Choi, an Investor in Crypto Venture and Hedge funds, The Spartan Group, currently the most Bitcoin Forks, no reason to invest in the long term:
“I can find no reasonable Hypothesis for most of the $BTC-Forks (LTC, BCH, BSV) in the long run.”
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In his opinion, the value will be siphoned off in these Chains in the course of time, slowly to DeFi and Bitcoin. Choi attributes this to the “emergence of the toll Token in the DeFi”, the non-productive assets, to promote the be converted in the these tokens to produce income.
Ethereum advocates have only drawn up recently, similar statements.
Eric Conner, part of the team at Gnosis and a prominent Ethereum-Podcaster/commentator, published on the 19. July following Tweet.
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He does not mention what he means by “spirits-L1-Chains”, but notes that the cumulative market capitalization amounts to $ 30 billion, and it is thus almost an order of magnitude greater than all the DeFi-brands.
Spencer Noon, Manager of DTC’s Capital, has joined this remark.
He believes that Ethereum and its DeFi-protocols/Coins suction values from all the corners of the crypto-currency industry, as soon as the yields are attractive:
“Cryptographic assets from the Blockchain, where there is a lack of expressive power (e.g., Bitcoin), or healthy Ecosystems (e.g., mental chains), are sucked into the output vacuum of Ethereum #DeFi. Not enough people talk about how in the long term, this could threaten the security models of these block chains…“
It is not clear how such inflows of other Chains could affect the price of Ethereum and DeFi – Coins. But when you consider the size of the market for “ghosts” and unproductive Coins, in relation to ETH and tokens, could be the cause of the movement of big waves in the market.
The traditional financial sector could be involved
Some commentators have gone even further than the above-mentioned investors, and argue that the money could be found from the traditional financial sector finally made its way into DeFi (and maybe Bitcoin), if the wider crypto-space is developed.
Max Bronstein, as part of the Institutional and Ventures Team at Coinbase, commented that in a world in which 15 trillion dollars in debt with negative yields stuck, “DeFi will grow exponentially” as long as there is a relatively high rate of return opportunities.
Su Zhu, CIO of Three Arrows Capital, adding that the banks now that you can crypto to hold, can actually achieve returns in DeFi, in order to increase your revenue.
Whether and how this happens is not yet clear. But when you consider that the banks at lower interest rates under pressure to generate income, it does not entirely unlikely.