Theta Vs BTC? Data Vs Money?
This post sparked a well thought out reply in the Uncommon community…
I posted:
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As Michael Saylor said -
“If you own Amazon and Apple, don’t diversify into other .com projects who are going to disappear.”
He thinks there is nothing beyond BTC… I disagree.
There is Theta.
ETH is behind Theta in terms of cost, speed, patents, big industry support, strategic partners etc.
Yes ETH is great for “open source” projects but I see money and marketing behind Theta playing a key role in its success before it becomes more decentralised. (The centralisation is a benefit for mainstream adoption.)
Staking gives security and rewards on your cash.
I will never tell you to do anything with your money.
I’m simply sharing where I’m putting attention.
My goal is to have 1,000 millionaire friends. And some who reach 3 comma wealth.
If that happens, my life will be good regardless of my own accounts.
Give value… create value… help people to see a better future for themselves…
Big Moves Coming in the months ahead.
Reply from Taylor…
I feel that Mr. Saylor’s point has been missed by many people.
Buying BTC is not investing in a project, it is buying digital property. BTC is already operating perfectly and serving its intended purpose.
Buying other cryptocurrencies is more like investing in a company. Most of these (arguably all) are not complying with SEC regulations.
I do not know what THETA’s fate will be when the SEC clamps down, but I hope they are ready to comply with all regulations imposed upon publicly traded companies.
That being said, I’m more than sure several projects funded through alt-coin sales will change the world and make many millionaires in the process. I’m mentally, emotionally, and monetarily invested in several of these projects myself.
My point is this, no other cryptocurrency is comparable to BTC and I feel drawing comparisons will only turn people away from your message .
This encouraged me to go deeper on a scenario where Theta is as important as Bitcoin and even more mainstream.
And that sparked this article…
In writing this, I can see there is huge risk connecting / comparing Theta and Bitcoin’s dual potential money options. Some people will refuse the possibility on face value.
It could be misleading and confusing. I’ve invested an hour or two writing this today to make clearer why I didn’t loosely conflate BTC with “Alt coins.”
This is my current understanding based on my learning journey so far and being challenged is where growth comes from. This is not my identity but it is my understanding.
Keep in mind that 2 years ago I was just learning what hard money is and the difference between money and currency. I didn’t know what a blockchain was and only had a few coins off a tip from an Uber driver (who’s now confirmed as a multi-millionaire.)
I have given BTC and Theta deep thought.
I’m not telling anyone what to do.
I’m painting a picture and asking you to have a look and tell me what do you see.
Let me explain where I’m coming from and why Theta could be better “money” than BTC, even as a layer 2 solution.
Before we get to that “Why Theta” and not one of the other 10,000+ projects?
How could this be possible when big-time YouTubers rarely mention Theta?
Understand that I’m coming from “Seeking the Uncommon” as a core value. If everyone agrees it’s probably wrong. The guy getting abused or ignored for having a different opinion is who I’m most interested in hearing and sometimes being.
PART 1. BITCOIN MATTERS
It is so important we understand that BTC is a layer 1 solution!
Michael Saylor with Tucker Carlson… https://youtu.be/st3KJN_DzCg
Saylor and many others see it as THE platform for the world’s money.
Others think it will become obsolete because of layer 2 solutions…
“When will ETH pass BTC in market-cap?” is a question that’s being thrown around…
Still others see government finding a way to convince or use violence against society so that their currencies remain dominant. Central Bank Digital Currencies have been “coming soon” for a while. They won’t be released without weight behind them political or financial.
Bitcoin is a first layer solution. It doesn’t do anything other than be pure unchangeable money secured by the network effect.
It is a new and unique invention that maximalists say will change every aspect of society.
Bitcoin doesn’t do anything other than BE MONEY… Bitcoin is not like other projects.
Potential weaknesses of Bitcoin:
- Although it is like the bitcoin forks. Could one of the forks (BSV, BCH…) may take over more/ most of the network effect? Some say yes.
- Bitcoin having 1,000,000 (out of 18,000,000 in circulation) parked tokens owned by “Satoshi” gives another degree of uncertainty/ centralisation to BTC. There is a potential sleeping giant who can own 1/20th of the world somewhere! Probably a cool guy, girl or group from what I gather but still!
- Government. Is Bitcoin competition to banks and government? CBDC’s (central bank digital currencies) are another conversation that relates directly to Bitcoin in my mind.
- Media. Ask 10 people in the street what’s the first thing that comes to mind when they hear Bitcoin. I would expect most people to reply; confusing, criminal, environmentally damaging, risky.
People talk about the power going out, internet stopping and using too much energy but these concerns don’t make sense to me.
If electricity and internet are finished we’re either back in the stone age or they’re going to be back online quickly. The energy side… doing more research about the cost of fiat currencies and the costs of other networks and products make this one seem ridiculous to me.
After saying all this what’s clear is that BTC has stood the test of over a decade of attacks from every angle. Not only has it stood the test and got to 1:1 ratio with the USD. It’s since gone to 1:$60,000.
Bitcoin is winning and people are waking up to what real money is.
But could the network effect of Bitcoin be challenged?
If so by who?
Let’s step back for second and consider that:
- More than 99% of the world’s money is not in BTC yet
- More than 90% of the population doesn’t own much including most old world rich people.
My point is that this game is yet to be played. Bitcoin has a massive first mover advantage but monetarily it looks like we’re 2 minutes into a 90 minute game.
PART 2. Introducing Godzilla (Theta is Godzilla…)
Could another company emerge that creates a stronger more positive network effect?
Would mainstream media’s acceptance of a blockchain project impact it’s adoption?
Do most people like Gaming, Netflix, YouTube and Sports more than learning about economic theory?
Do academics or celebrities have more influence over mass adoption?
What is Theta?
I think of Theta as being “like” a tech company. Their primary purpose is to solve the bandwidth issue that’s holding back the internet. Streaming, the metaverse and global access to high quality gaming and video in all corners of the world can only happen with new technology for data distribution.
Theta’s network for this service is up and running and paying rewards to those who are facilitating the network.
Netflix, YouTube, Apple and other data giants currently use CDN’s (Central Distribution Networks) to send data around the world.
Theta can provide a better service cheaper but has to prove itself to very high standards for the giant companies to move their money (and data) to Theta.
Decentralised data has huge implications.
Things to know about Theta:
It didn’t ICO and has partnered with massive enterprise.
It’s run by people in the mainstream tech world.
It’s based in the Silicon Valley area.
They have multiple US patents.
All this makes it one of the least “alternative” projects in the top 30 crypto space.
It looks like the “goody two shoes” of the crypto world.
They are one of the few projects that are well positioned for the regulators crackdown that many are predicting to come soon.
Beyond the data…
Increased token price and more people running edge nodes will accelerate the growth of Theta.
For this to happen more people need to know and understand the potential of Theta.
According to their latest white-paper NFT’s are a key strategy to expand awareness about Theta.
ThetaDrop is the official Theta marketplace.
ThetaDrop allows people to buy directly from USD. Partnerships with World Poker Tour, One (MMA) and some Crypto influencers have done ok so far. Katy Perry is coming to ThetaDrop this month.
The biggest play so far seems to be Secret Pineapple Society. It’s done more than $10 million in volume and has had a dozen purchases over $30k. Theta’s entertainment industry connections are what give it the most explosive potential in the short term.
The other major developments in that have been:
- The Hackathon projects and getting developers building on Theta
- Cross-bridge compatibility with Etherium.
- DeFi cross-bridging to other networks.
Watching this project for the last 16 months it has developed from something without clear real-world utility, to a project that could bring mainstream adoption to crypto currencies.
The possible scenario where Theta becomes the mothership of the (trillion dollar) last mile solution is becoming more likely.
Is cutting CDN costs is the new oil economy in a world where data is king?
If Theta cuts emissions and costs for big tech as planned Theta could be service on the scale of Apple / Amazon etc. The key difference is that lower income individuals can participate and MAKE MONEY with an edge node.
Also anyone with an internet connection can earn rewards for watching content(!)
Watch out for rewards for watching major entertainment platforms coming soon.
Apple excludes most of the world’s population because of their prices. Amazon excludes them because of their purchasing power and distribution networks (no amazon in Montenegro).
Theta puts money in the pockets of the poor(!)
What about Bitcoin?
Well it’s great for storing wealth.
But most people don’t have significant wealth to store.
Tokenomics of Theta Token
Theta is hard money because…
Only 1 billion coins will ever be minted.
They are all in circulation.
It is the governance token of the Theta Network.
You need 1,000 of them to own a guardian node (which you can outsource and still get rewards for).
Could Theta be the most important and trusted decentralised data system in the world?
If it was… hold more value than Bitcoin?
If it’s more important and easier to understand than Bitcoin and it pays interest will people want it / trade it?
Is DATA distribution more important than money now?
Will it be in the metaverse?
If Theta is the data distribution solution of the future… will owning it mean more to millennials and future generations that Bitcoin?
Will branding as “Green” from the start make a difference?
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Is T-Fuel Money…
T-Fuel is not like Bitcoin.
It’s being minted and burned… it could in theory be inflated away like fiat currencies.
Since Theta Network is not a government of a nation state and people understand inflation of supply when it comes to crypto tokenomics, ridiculous printing is unlikely.
Supply may be manipulated to avoid the price getting too high.
T-Fuel is in effect loosely pegged to Theta by the staking rewards.
The incentive is to buy T-Fuel right now because it’s returning 8%, whereas Theta returns only approx 3%. Some say the NFT adoption will also drive up the price of T-Fuel.
As the token value increases, 3% becomes more important.
3% of 1,000 tokens valued at $8 is $240
3% of 1,000 tokens at $800 each is $24,000
… big difference.
The current skew of rewards drives the market towards T-Fuel, despite it not being hard money. It’s hard to see the two tokens ever going beyond 50:1 type price value.
We’ll see.
Theta token is the governance token that stabilises the whole network.
Big tech owns many of them.
Theta network owns plenty and at the moment everyday people can own plenty.
There are 1 billion tokens only.
They are all minted and are either staked or circulating.
As it is a governance token. Theta holders will have something like “shareholder rights” to vote on the direction of minor aspects of the project and distribution of earnings.
For now, Theta is a centralised project that will become increasingly decentralised in its governance as it matures…
Will Theta ever function as “hard money” AND like “shares”?
From my understanding, it has the characteristics of hard money.
The key question is: Could it gain the network effect of Bitcoin?
Theta v. Bitcoin
Public perception…
If Theta becomes the last mile solution, it will be one of the world’s most trusted and reliable networks.
Bitcoin has been slurred as a dark-web solution since day one and is ignored or used like a swear word in mainstream media.
Green…
Theta cuts CDN energy expense and carbon emissions as a corporate backed “green” entertainment solution,
Bitcoin has been repeatedly attacked for the energy it requires. Maybe it overcomes this bad name. Clearly it’s not justified but does this perception influence corporate and consumer decisions?
Status, millennials and beyond…
Theta has strong connections in entertainment and in sports.
Bitcoin is loved by those who got in early, some Austrian economists and computer engineers.
Banks, government and power…
Bitcoin seems to be challenging the fundamentals of the world’s power structure. Many hodlers are openly against the existing power structures.
Theta is well connected with corporate partnerships and has no tone of “overthrowing the system”.
it’s possible that it could become MORE socially acceptable and desirable to hold Theta than BTC.
Maybe big business will have to use BTC as money as Saylor is saying.
Maybe it eats the world’s assets.
Maybe they won’t.
Sovereign Individual is a good book to explore that scenario.
If big business doesn’t adopt BTC as the primary treasury…
It is very possible that those holding most of the money now do NOT adopt real hard money in the form of Bitcoin.
In the scenario where Theta is the monolith of new-tech by facilitating virtual reality (Metaverse), it is possible that Theta will be extremely valuable.
The hardness & liquidity of the tokens makes them similar but different to shares as we know them. These “shares” can be exchanged like money and move just like stable coins between people, even though price can fluctuate.
I’ve seen first hand that people would rather take Theta “shares” than BTC or Fiat because they have more potential (and risk.)
In conclusion, Theta and Bitcoin are not the same.
The odds are massively in favour of Bitcoin remaining the dominant crypto asset.
But could Theta have a stronger network effect?
And could it gain more mainstream acceptance?
Could flawless daily data delivery become the ultimate credibility?
We are a long, long way from what would need to happen for THETA to pass BTC for now let this be etched on the blockchain.
Is the future of data in Theta?
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