Thread by @real_vijay

1/ What is the difference between monetization and market cornering? I wanted to explain this in more detail because so many people misunderstood what I wrote.

https://twitter.com/real_vijay/status/987766992386965504

2/ The process of monetization is the increasing distribution of the supply of a monetary good amongst a population. What matters is not the number of people who become owners per se, but how fully the supply itself is distributed.

3/ For example, if a monetary good is owned by a million people, but 99% of the supply is in the hands of a single person, it is less distributed than a monetary good owned by a thousand people where no single person owns more than 1% of the supply.

4/ Bitcoin still has a fairly low distribution - it is likely that just a few thousand people still own the majority of the supply - but it is improving. As the price rises, long term HODLers will begin to diversify and the distribution of supply will increase.

5/ Consider, on the other hand, BCash, which piggybacked on the ownership distribution of Bitcoin when it forked away from the original network. The distribution of BCash is actually shrinking. The process of monetization is reversing.

6/ There was a massive and short-lived spike in BCash in early November, 2017 from less than 0.1BTC to almost 0.4BTC. This can only be explained by a large whale transferring their BTC to BCH. It's pretty obvious this was @rogerkver (and perhaps also @jihanWu)

7/ In making this massive transfer, Ver increased the ownership concentration of BCH while decreasing it for BTC. He was increasing the monetization of Bitcoin while cornering BCash.

8/ Eventually the dominant owners (aka "bag holders") in a market that is cornered resort to desperate tactics to offload the supply they have accumulated to prop up the price. Misleading marketing and supply destruction are examples.

9/ Roger has repeatedly attempted to defraud unsuspecting buyers into believing that BCash is Bitcoin. Eventually this will lead to lawsuits.

https://twitter.com/ArminVanBitcoin/status/988510664955256832

10/ The marketing used by the BCash community is also atrocious. Only perennial bachelors like Ver and @CalvinAyre, who don't have wives or daughters, could possibly think that plastering "BCH PLS" (bitch please) on a bunch of hired women was a good idea.

11/ Beyond the marketing, Jihan Wu is also destroying BCash supply in a desperate attempt to rescue BCH from falling below the credibility line of 0.1 BTC.

https://twitter.com/crypto/status/988499835040030724

12/ But these tactics cannot work. The process of monetization must be organic to succeed, as the Hunt brothers learned to their chagrin after manipulating the price of silver during the late 70s.

13/ There is only one cryptocurrency that is firmly on the road to full monetization and that is Bitcoin #BTC:

https://twitter.com/real_vijay/status/969591986662424576