Advertisement
AD

Main navigation

Bitcoin Mining Veteran Jiang Zhuoer: Permanent Bulls Don't Have the Most Basic Common Sense

Advertisement
Fri, 4/03/2022 - 12:17
Bitcoin Mining Veteran Jiang Zhuoer: Permanent Bulls Don't Have the Most Basic Common Sense
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Advertisement

Jiang Zhuoer, CEO and co-founder of top-tier Bitcoin (BTC) mining pool BTC.TOP (now defunct), explains how DeFi can help in the epoch of unstoppable deflation—and why being a "permanent bull" is dangerous.

How DeFis allow users to stop worrying about asset dynamics

In his detailed Medium post, Mr. Jiang Zhuoer assured that, as no deep bear market is expected to come, passive holding might be the most profitable tactic in the mid-term perspective.

Also, with the rapid progress of DeFi protocol adoption, it might be a smart bet to borrow coins against collateral and never sell it. Particularly, it becomes useful in the context of decreased value of fiat currencies:

Advertisement

Will fiat debt become zero (compared to fiat standards) within a few years as coin prices rise and you are worried about small fiat loans that need to be repaid?

As such, the borrower can only pay interest, which is far more profitable than trying to "buy low, sell high" when the markets will show unlikely prolonged bear trends.

However, to avoid being liquidated, Mr. Jiang Zhuoer recommends borrowing coins with low LTV, e.g., in an amount equal to 10% of the collateral's value.

What's wrong with permabulls?

However, he avoid calling himself a "permanent bull." Mr. Jiang Zhuoer recalled that, although prolonged bear markets are not in the cards anymore, market laws still work.

As such, his words should not be interpreted as a prediction of a constant price upsurge for all major cryptocurrencies. Such bias can also be dangerous:

For those who advocate perpetual bulls, they do not have the most basic common sense of economy and finance.

As covered by U.Today previously, in mid-February 2022, Mr. Jiang Zhuoer made headlines with his statement about macro bear markets in crypto.

Related

Seasoned crypto entrepreneur attributed this trend to growing maturation of Bitcoin (BTC) as an asset.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD