Bitcoin and DeFi could benefit from fork dying
Jason Choi, investor in Crypto Venture and the hedge fund The Spartan Group, currently sees no reason to invest long-term with most Bitcoin forks:
“I can’t find an acceptable thesis for most $ BTC forks (LTC, BCH, BSV) in the long run.”
In his opinion, the value in these chains will slowly be skimmed off to DeFi and Bitcoin over time. Choi attributes this to the “emergence of fee-based tokens in DeFi” that promote unproductive assets that are converted into these tokens to generate income. Ethereum advocates have recently made similar claims. Eric Conner, part of the Gnosis team and prominent Ethereum podcaster / commentator, released the following tweet on July 19.
Ghost L1 Chains
He doesn’t mention what he means by “ghost L1 chains,” but notes that the cumulative market cap is $ 30 billion, almost an order of magnitude larger than all DeFi brands. Spencer Noon, chief of DTC Capital, has endorsed this remark. He believes Ethereum and its DeFi protocols / coins will suck up values from all corners of the cryptocurrency industry as soon as returns become attractive:
“Cryptoassets from blockchain that lack expressiveness (e.g. Bitcoin) or healthy ecosystems (e.g. ghost chains) are sucked into the yield vacuum of Ethereum #DeFi. Not enough people are talking about how long-term this could threaten the security models of these blockchains … “