Is Bitcoin an accomplice of the US dollar in harvesting the world? What is the prospect of the re-pledge track?

Source: Daoshuo Blockchain

1. Some people say that after the Bitcoin ETF was passed, it was officially incorporated by the Federal Reserve, and Bitcoin will become an accomplice of the US dollar in harvesting the world.

The view that "Bitcoin was incorporated by the Federal Reserve" sounds like a conspiracy theory. It seems that the series of operations on Bitcoin by the Federal Reserve or the US government are premeditated.

I am generally cautious about such views.

I prefer to regard this series of actions as the policy that the US government has always followed in the process of the birth and development of new things: let the bullets fly first, walk and see, but once you enter my jurisdiction and enter my range, I must use my rules to restrain you and control you.

In this process, the actions of many other stakeholders are also the same.

The most typical one is the traditional capital of Wall Street.

They disdained Bitcoin at the beginning, but later quickly turned to embrace Bitcoin and desperately lobbied regulators and relevant congressmen. This was not a premeditated plan, but in the process, they quickly smelled the "bloody smell" in it, and in order to get the most benefits from it and dominate this emerging asset, they immediately changed their attitude and actively promoted the subsequent actions.

We can see that in this process, the power of the US government is not unilaterally dominated, but the result of the interweaving, entanglement and compromise of the interests of all parties.

The final result of the compromise and balance of all parties objectively made the US dollar and the United States the dominant force in crypto assets.

As for the view that "Bitcoin is the accomplice of the US dollar to harvest the world" and "there are forces behind the scenes manipulating the price of Bitcoin, and then letting the whole world take over", I do not agree with this kind of view.

Because this sounds like it has praised those big capitals and big institutions to the sky, and thinks that they are omnipotent and can control the world.

Old readers who have read my articles know my consistent attitude: what big capitals and big institutions, in my opinion, most of them are just retail investors with a lot of money.

In the 2008 financial crisis, were the big winners Goldman Sachs, Morgan, Citigroup and other giants? It was the unknown Paulson.

Not to mention big capital, even the US government has made a lot of stupid moves and exposed a lot of failures in history.

How did the collapse of the Bretton Woods system trigger? It was Charles de Gaulle who saw that the US government could not redeem gold and forced it to submit.

Back to the crypto market, you might as well recall the operations of the so-called big capital that broke out during the last round of bull-to-bear period---they were so bad that they were not as good as many retail investors.

In the above examples, why did those big institutions have problems? Why did the US government reveal itself? Why did those big capitals perform so badly?

It's not because their opponents are so magical, but because their opponents dare to look through the flashy appearance and use the simplest and most straightforward rules to examine.

So in the financial market, who harvests whom and who can laugh last, often look at the most basic principles and the simplest truth, rather than the superficial flowery shelf.

In the face of market rules, no person or institution is an omnipotent force that can control everything.

Follow the most basic principles, formulate our strategies, control our human nature, and strictly operate our operations. We don’t know whether the United States can harvest others, but it certainly can’t harvest us.

2. About the re-pledge track

Readers often ask questions about the re-pledge track.

In fact, there are only a few popular projects in this track: EtherFi, Swell, Renzo, Kelp, Puffer, plus the most core EigenLayer.

Among these projects, EtherFi has currently issued coins, and the response to the token issuance is currently very good. Therefore, more funds have begun to flow into other projects that have not yet issued coins.

I remember that I wrote an article a few months ago, which specifically analyzed EigenLayer from a technical perspective and the risks they may have.

These risks still exist today, and I read a worrying data these two days:

Currently, the utilization rate of Ethereum pledged to EigenLayer is only about 10%, which means that only 10% of Ethereum is used to provide "security".

From the perspective of income, we can say that only 10% of Ethereum in EigenLayer actually has pledge income, and the other 90% is idle.

Obviously, this situation cannot provide long-term and stable income for the entire EigenLayer ecosystem. But even so, there is still a steady influx of funds.

Why?

Because everyone is rushing to issue coins.

So for this track, my advice is very simple: you must only use the funds you can afford to lose to pledge, and choose one or several well-known large projects to participate. There is no need to delve too deeply into the others.