I'm just going to come out and say it: due to my research I have come to the rather obvious, in hindsight, conclusion that Marketcap and by extension cryptocurrency exchanges are perpetuating a massive fraud on the entire space. This fraud began years ago during the rise of the first exchanges and was most likely deliberate. To save you time, the solution is to switch to using fair value instead. By using fair value, all of the issues listed go away.
I have written a couple times about it, and you can read that if you like here. I'm not the only one, others have also seen through the mirage. In short, the data you see on CMC is manipulated and wrong. There are four major issues that come from relying on exchanges and their pricing data to evaluate the market.
- Exchanges price the entire market in BTC
- Exchange data/CMC does not take into account the difference between the supplies of various coins
- Average prices come from very low-liquidity exchanges, which makes the average easy to 'move' by artificial volume
- Exchanges don't make their trades on chain unless sending or receiving. So all your trades are just ledger entries like a bank.
Why is this such a problem? It doesn't seem like it would be until you realize that they are using the same manufactured events to justify artificially lowering the price and keep it down. Example, on Nov. 15, CSW began carrying out his promise to destroy all POW chains. What a bold promise. How could something be accomplished? All the chains have different algos (except BTC and BCH, ETH and ETC, Dash its forks like PIVX etc.) so how could such a feat be possible?
Clearly he was mad and we laughed it off. Until you realize that his little 'hash war' was just the excuse used to remove tens of billions of dollars from Crypto valuations. Since the fiat-crypto exchange rate is set by these valuations, he was basically telling you he is connected to those who have the desire and power to destroy cryptos.
What am I talking about? We can see from bitcoin's fair value, currently $8,069.58 compared to an exchange price of $3,608.78, that the market has seemingly 'lost investment'. But in fact, since Nov 15 the amount of investment into BTC has skyrocketed! BTC's fair value and price last crossed (indicating that speculation had been removed according to the theory) on Nov 14th, then the price went south and the fair value went north! People have been buying and hodling BTC AND NOBODY EVEN KNEW IT!
How? Because Coinmarketcap.com and exchanges are perpetuating a massive fraud on the economy. It would be like doing your taxes and saying your gold bars worth $100k were actually only wroth $10 k. You could provide 'reports' to this effect. But any real assaying will show the true amount, and thus value, of your gold hodlings.
Fair value is a 'true assaying' of the cryptocurrency economy. Coinmarketcap and average exchange price allows whales, i.e. govts and subversive, destructive elements, like Calvin Ayre and CSW, the ability to artificially control the price and affect sentiment. So even though fair value theory dictates that once speculation is removed price and fair value should match, if they manage to artificially control sentiment, they can indirectly lower the fair value over time and destroy the new, free economy!
Again, looking at bitcoin's chart, you can clearly see that the second run up of 2017 WAS FAKE! You can also see that the slow bleed downward for 2018 was also fake! Malicious whales are manipulating the price to control sentiment and make you think cryptos are less popular than they are.
This is most likely how Charlie Lee knew when to sell.
If you're connected to these whales, you will obviously know when their movements are going to be made before everyone else. This is possible due to 'price' being a simple average in a very low liquidity market. This causes you to undervalue good projects, and overvalue bad ones. Dash's current price is only $79, but its fair value has been over $200 for months now!
BCH has a fair value of $392.16 with a mere price of $122.35. This is possible because, again, exchanges and cmc are not giving you accurate information deliberately. Fair value uses on-chain metrics in order to price coins, so you are getting the actual barter-value that people are trading at with it. Price is, again, easy to manipulate. We've seen over 1 year of solid price manipulation now. The longer we ignore it, the more likely they will use fabricated events like this one to destroy cryptocurrencies!
It's all fun and games to suggest BTC core should lower the blocksize, until you realize that all cryptos are priced in BTC so any bad price action there will decimate the whole valuation of the entire market! This is designed to appear accidental, but it is in fact by design and an attack. The only way it would be good to goad BTC core on like that, would be if we were using independent valuation metrics for each coin, s.t. the price of BTC was independent from the price of BCH, Dash, ZEC etc. But its not! So just like the Nov 15th hashwar, such a move would artificially lower the valuation of the entire market!! TREAD CAREFULLY!!!
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