Something strange is happening with Bitcoin 🤔

All about Bitcoin, Aptos and Aidrops

Author

Build in Bear
October 24, 2022

GM, this is Web3 Seems Legit, your weekly (healthy) dosage of crypto hopium and FUD 💊. 

In this issue, we're exploring these latest web3 stories: 

  • Is Bitcoin mining in trouble? Bitcoin is down 70% and cost of energy is up, but yet, there are more miners than ever. Seems a bit odd.

  • Why don't people like this new VC-backed chain? Aptos, a new VC-funded layer 1 blockchain had a rocky launch week filled with criticism about its tokenomics.

  • How can you take advantage of airdrop season? In this bear market, people have been making thousands of $$$ off recent airdrops. How can you get in on it?

Is Bitcoin mining in trouble?

The rumor mill in crypto is always hard at work 💪. What's not a secret is that, Bitcoin is down 70% and energy prices are up. What's strange, however, is that Bitcoin's hash rate is also up at all-time highs 🤔.

Here's a quick hash rate 101 lesson:👨‍💻 Bitcoin is mined through a network of computers 'competing' to crack a code.🔌 Hash rate is the amount of computational power it requires to solve it. 📈 Hash rate = 📈 More miners competing = 📈 More difficult/costly to win

With BTC prices down and energy costs up, the profitability of mining should be down, but yet, there are more miners than ever competing. A bit fishy 🤔. 

Well, the rumor is that large corporate mining operations are trying to push out small, unprofitable miners.

The question is, who are these large entities taking advantage of this opportunity and should we be worried 🤔?

Others are warning that we should prepare for prices to dip even lower. This has happened before and ended with a bunch of bankrupt miners selling their BTC.  

On the flip side, if BTC miners are bullish right now, this could also be a good signal 👀. We can never be certain about what will happen, but if you were thinking of accumulating more BTC, now could be a good time to bag some more 💰. 

Why don't people like this new VC-backed chain?

It was 4 years in the making, but last week, we finally saw the launch of the new VC-backed layer 1 blockchain, Aptos 🚀.

Claiming to be the "safest and most scalable" L1 chain, people had high hopes, with some even calling it the potential "Solana Killer". Too bad the launch wasn't all smooth sailing 🌊.

Upon launch, Aptos received tons of criticism for failing to post their tokenomics right away. This matters because tokenomics provide transparency about the project value. But when you have major VC funding, you can get away with almost anything 🤷‍♀️.

Even after posting an overview of their tokenomics, people still weren't satisfied, particularly with the token distribution. 

That's the tradeoff with VC-funded projects. You have a project with great resources, but poor incentives for the community. Despite all that, tons of early-stage stage projects are beginning to build on the Aptos chain 👇.

Will Aptos actually take over Solana? We're not sure yet, but there is also a third contender in the space, SUI. Between Solana, Aptos and SUI, we think only one can survive. May the best chain win 🤝.

How can you take advantage of airdrop season?

Even with all the criticism around Aptos, the launch has also sparked momentum around airdrops. Especially during a bear market, airdrops are a great opportunity to make money 💸.

Airdrops are meant to draw attention to new projects by rewarding early users with free tokens for participating. People made thousands off the Aptos airdrop and there are tons of upcoming airdrop opportunities to look out for 👇.

Time to stack up for the holidays 💪! 

In other news 🗞️

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