BITCOIN this, bitcoin that buy BTC. Sound similar, does it sound like what everyone is talking about!? Well, get ready for something different warheads, cuz its time for Chico Crypto! BTCs all over the airwaves because it’s doing really well, shattering expectations over the past 2 months, rising basically nonstop from 10k to over 18k once again as of yesterday. An 80 percent increase, in just 60 days.
BTC is on literal fire. But there is data that says, hey maybe there’s bigger opportunities that lie somewhere else. So there is a nice little open-source tool, called btc-on-ethereum.com. It tracks bitcoin that is being moved over from the bitcoin chain to the ethereal chain.
And nearly 152,000 BTC have been moved to ethereal, and it been a blast-off since August of this year. Out of the total BTC supply, that will be ever made, 21 million, that is nearly .73 percent of the total supply, with most of that coming over the past 3 months.
But if you account for the lost coins, it’s actually estimated to be over 1 percent of the total supply. Ethereums DeFi is swallowing up BTC, faster than anyone could have anticipated. Now here is a very interesting figure, which makes me oh so bullish on ETH.
So, what if a 1 percent move of the total supply of BTC, moves to the Ethereum chain, per year from 2020 and beyond? By 2025, 5 percent of the total BTC will be locked and by 2030 10 percent of all BTC will be locked. And 1 percent might be a low estimate. BITCOIN UTXO, bitcoin unspent transaction output, its what wallets have left after doing a bitcoin transaction, and it’s the part of the transaction which keep the ledger balanced.
It says this wallet has this much left, unspent with each and every BTC transaction. Thus you can use UTXO, to see BTC that’s just sitting there, not moving. AKA, it’s being held, not used. So here is the BTC UTXO age distribution chart, it shows the percentage of BTC, and how long it’s been held in the last wallet.
As we can see over 22 percent of the BTC has been held over 5 years, 3-5 years, 14 percent, 2-3 years 12 percent, 1.5 years to 2 years 10 percent, and 1 year to 1.5 years, is over 11 percent. So adding that all up, nearly 70 percent of all BTC hasn’t moved in 1 year, or over.
So, some of you are like hey, isn’t this bullish for BTC?? Yes, it is, holding an asset for a long time and not adding it to the trading supply, is a bullish sign, just based on supply and demand. But that means, 30 percent of the BTC has been moved in under a year. And 1 percent of that move in the last year, with the bulk of it in the last 3 months was to Ethereum.
So here is where things get interesting, those BTC, moving to Ethereum, are usually going to be there for some time, to earn interest, and stay..So eventually a large bulk will turn into 1+ year, UTXO transaction age, That will look good for BTC, in the charts, but in reality, it’s, not at all unless BTC embraces ETH as a layer 2 but in my opinion that’s not happening.
So why’s it bad? Well, based on its proof of work algorithm, you have to keep the miners happy. The BITCOINs inflation rate is currently about 1.8 percent, after the next halving in 4 years, it will be less than 1 percent per year.
Remember I said, Ethereum may be taking 1 percent of the BTC per year, so by 2024, 4 percent will already be there, and now it’s taking more than the inflation rate too and the miner’s rewards? That’s not good, especially as time goes on, 2030 issuance on BTC will be under half a percent and upwards of 10 percent of the supply could be on Ethereum.
And the longer time goes on, more Ethereum could be moved, while issuance gets closer to zero and the miners rely more on on-chain activity, and transaction fees. Well, guess what? The activity might not be happening on Bitcoin, it might be happening on Ethereum, and that bitcoin will be locked, not moving.
Like I said that’s not good as time goes on. So obviously, if this trend continues, who do you think would be the better long term bet? Ethereum BITCOIN on Ethereum, a hot topic which leads me right into the sponsored segment of today’s video, supported by the DAO, decentralized autonomous organization, PIEDAO and like always the full details of the agreement can be found in the description.
Now, I’m excited about this sponsorship, #1 I’ve covered PIEDAO and their DAO’s products before, back in April, specifically something to do with Bitcoin on Ethereum, called Bitcoin ++ which we will get into again and #2 this sponsorship is a product of decentralized governance and DAOs.
So, PieDAO is the a top Aragon based DAO, and actually a top DAO in this sector, they have the second most assets under management according to DAO tracking site, deepdao. But look at membership, compared with others around them like mstable or airlab, they have over 2100 to members, compared with their 8 & 11. Much more robust, and puts much more of the decentralized in decentralized autonomous organization. So this DAO, they actually voted on doing this sponsorship. As we can see, here is the proposal in the Aragon client voting dashboard, digging into it, we can see the payment for the sponsorship, was voted on by the DAO members, and I needed to hit metrics for it to succeed, over 60 percent relative support, and hit the 10 percent minimum approval threshold…Did I do it? Did I win support? Well, obviously, checking it out, I hit the metrics and the proposal passed. And the beauty of this, discussions happen during the voting periods on the forums, tagged to my proposal, so people can say, ya lets do it, or no Chico sucks.
And why. PieDAO exemplifies the beauty and future of distributed organizations, and how funds are dispersed from them, live and progressing in Action. So lets now get into the PIEDAO, DeFi products, what are they offering to the DeFi space. Well BTC++ are a piece of the pie, so what is that?? Well, bringing over your BITCOIN to ethereal, it’s risky.
There is the potential for hacks or rug pulls with centralized entities getting centralized wallets emptied and with decentralized entities, you have the potential for hacks through smart contract exploits, defi exploits like flash loan attacks & more.
BTC++ was made to spread out that risk of BITCOIN on Ethereum. Itis balanced pools of top ethereal based bitcoin assets, 4 right now, wrapped into 1 token. So you don’t put all your eggs into one smart contract basket but multiple. Spreading out risk.
Now BTC++ was just their first product, they have launched more portfolios wrapped inside of a single token, and this can be found at the app dashboard, pools.piedao.org, and of course the link for this is in the description. The new pies include DeFi+L, Large Cap exposure to top DeFis top projects like compound, save, link, yearn & more.
DeFi +S, smaller-cap exposure to projects like UMA, REN, Loopring, Balancer and more. Then they also have a 50-50 weighted pie, of those two pies, called DeFi++, and they also got out, their risk-adjusted stablecoin out, called USD++, which contains UDSC, TUSD, DAI and SUSD again spreading out stablecoin risk. Now, I’m sure some of you are like hey, this sounds pretty similar to the set protocol, and their token index..and you are correct.
The two kind of spun out of each other…with the launch of the Index Coop in October, someone asked why not PIEDAO? And Felix Feng, CEO of set protocol said, Haven’t really looked into PieDAO. Seems like they have a similar vision/thesis. Always good for customers if the market has multiple vendors.
Which is true, but the Alexintosh came in and said We spoke on October 2019 during the concept phase of PieDAO, again on June, you know we did a test net on SetProtocol (GitHub check) In June, you informed us rebalancing multiples assets was not possible yet and still far away + you had to whitelist the assets.
A little crypto index token drama? Well, competition is a good thing but if Set Protocol and DeFi pulse got their ideas from PieDAO, give credit where credit is due. Although, PIEDAO indices are currently performing better than INDEXs DPI, and others, depending on which one you choose.
Here is a comparison, the DEFI+L is the best performing, over 77 percent returns, then synthetics left index, sDeFi at over 65 percent, then pedals DeFi++, at nearly 62 percent, then the DPI at just over 58 percent, and finally the DeFI+S at just over 24 percent.
And the beauty about PIEDAOs pies versus others, they are fully governed already, by the DAO with their governance token dough, which gives you access to participating in the governance votes and proposing votes of their own.net bad slice of pie, wouldn’t you say! Now besides tokenized indices, what else within ethereal am I bullish on?? Well, I’m bullish on Deep DeFi integrations, and this one actually leads us to a new token.
So Kleros, I’ve brought them up, and am a holder of their token, bullish on their decentralized dispute resolution layer. Well, Kleros just brought on a big player, Jimmy Ragosa, former product lead and manager at Conseynsys.
And now he is lead of product integrations with Kleros, from the wide Ethereum net of consensus to product integrations at Kleros? I think big plans and Jimmy he some of their current integrations, including Uniswap, Omen, Gnosis & more, including a picture of the cross deep integrations, kleros plays in but also he said Among many others (integrations) now and tomorrow that I will detail in dedicated threads soon. Tomorrow as in future product integrations and others. Well, I know of one, its OctoFi, the decentralized finance tentacles.
They tweeted this 2 weeks ago Thanks to Kleros_Io and our inclusion in klerosT2CR, the listing process on OctoFi will be completely decentralized. And $OCTO holders will have listing fees directly distributed to them. The future of #DeFi is more decentralized than you think.
Then in an October blog post, they said something that might reveal something that’s bullish for both, Kleros and OctoFi they said this Now you can stay up to date with the octopus directly from coinage. Just one of many integrations made possible by our recent inclusion with Kleros. Which isn’t false, you can view Octo on Coinbase, but of course its not supported.
But this is possible only by Kleros? Is Coinbase using Kleros tech for their asset exploration lists? How was that made possible by Kleros?? But back to Octo remember I, Deep DeFi integrations are a good thing. Kleros is one, but they have many more.
The aquafarm app is deep it’s a dashboard and tool that aggregates the thousands of DeFi opportunities, track them, allows you to invest, swap and govern with them, and shows you your performance, all in one place! So OctoFi, its DAO governed too they are currently using Snapshot, to run the voting, which is from Aragon and Balancer.
Although going to their wiki, Octo 101, they do say the team is anonymous…but give their reasons, but scrolling up in 101, it says its rug pull-proof. How? Well, going back to their October blog post, about Kleros below it says this OctoFi has been rug-pull proofed.
We locked approximately $2.3 million with our friends at Team Finance following their audit: 200,000 OCTO from Project Reserve locked for 1 year, with 25,000 streamed back in real-time to the project over 6 months.
Approx $300,000 OCTO-USDC and OCTO-ETH Uniswap liquidity locked for 1 year. So this is a good sign, they are locking up the team’s tokens and integrating with DeFi to eventually pay the team. 25k Octo are being streamed back to the team, in real-time to the project over 6 months.
Streambacked? What does that mean? Well, its a solid DeFi tool DeFi Dad on Twitter said he was thinking about moving his team payments from zapper fi, to Sablier. And OctoFi replied We use Sablier quite a bit. Fantastic tool. So the tool?
I’ve covered it a few times It allows payments to securely be streamed, on set schedules, even by the second. So this leads weight to their vision, and long term stays, but just like any anonymous team or protocol this is not an endorsement, I’m investing an extremely small amount, not going all in and nor should anyone else. Cheers Ill see you next time!.