Why BitTorrent X Seems to Be a Big Waste of Time

The BitTorrent (CCC:BTT-USD) news release from Oct. 22, 2020, held so much promise.

A concept image of the BitTorrent (BTT) token.
Source: Shutterstock

“BitTorrent Announces DLive Acquisition and New BitTorrent X Ecosystem,” stated the press release’s headline. 

“BitTorrent X represents the transformation of BitTorrent, a world-renowned peer-to-peer service from a software company into a conglomerate of decentralized storage and data protocols and content distribution platforms,” the press release declared. “The entirety of BitTorrent X’s utilities and services will be powered by the BTT cryptocurrency.”

From that day in late October through June 23, 2021, BTT is up more than 530%, to $0.0027

BitTorrent supporters are so excited about the future even InvestorPlace contributors are calling for the cryptocurrency token’s price to hit $1 in 2021. Were it to do that, BTT would have to appreciate by more than 45,000% by Dec. 31. 

Where can I sign up?

I’m confident it will not come anywhere close because BitTorrent X appears to be nothing but an opportunity to blow smoke up the average crypto investors’ posterior.

So, what is happening with BitTorrent X? I’ll try to find out.

My IP Colleague Owns BitTorrent

InvestorPlace’s Mark Hake discussed why BitTorrent was worth significantly more with DLive in the mix in early June. Hake actually owns BTT tokens. 

DLive is a blockchain-based esports streaming service that allows users to watch other people play video games, much like Twitch. Go to the DLive site and you see that it’s trying to put more revenue in the hands of content creators and viewers. 

“DLive takes 20% on all transactions on the platform, whether that’s a recurring subscription or a one-time gift, compared to traditional platforms that take roughly 50%,” its website states. 

“75% of each subscription and gift in Lemon will go to your wallet directly, 20% goes to DLive to help with long term development, and 5% will go to a pool that rewards people with BTT Stake for their contributions to the network on a daily basis.”

As a freelance journalist, I totally get the impetus of such an arrangement. The blockchain is ideally suited for this type of compensation plan.

The Setbacks Continue

InvestorPlace contributor Ian Bezek pointed out that most of DLive’s live streams have pitiful viewership numbers in late May. It’s a business that looks ready to fail, in his opinion. 

“[I]f BitTorrent is going to succeed, it needs to find some use for the token that takes off. DLive’s rise and then abrupt loss of momentum is an interesting example of the difficulty in creating new businesses on the blockchain,” Bezek wrote in May. 

“While there is less regulation than elsewhere in the tech universe, cryptocurrency companies still run into novel legal and societal problems as they expand their businesses.”

And, how can I write about cryptocurrencies without mentioning a thought or two from InvestorPlace resident expert Josh Enomoto. 

He basically echoes Bezek’s commentary that to be more accepted as a legitimate platform for interesting discussion, DLive has thrown decentralization out the window to favor centralized oversight. 

One of the best examples of successfully straddling decentralized and centralized anything using blockchain technology is the Celsius Network, America’s largest crypto lender. 

DLive doesn’t appear to come anywhere close. As a result, Enomoto believes BitTorrent has an unsustainable business. I would agree

Where Is BitTorrent X?

If you go to the BitTorrent website, the first thing you see are the words “BitTorrent X: The world’s biggest distributed network, powered by BTT.” The home page states that it has over 2 billion users and 100 million monthly average users (MAUs). 

But when I click through the “press tab,” I see that the most recent news article is from July 8, 2020. Tron Foundation founder Justin Sun’s been too busy dining with Warren Buffett to update the BitTorrent X press kit.

Apparently, I spoke too soon. 

Justin Sun chooses to educate people through social media and Medium. Unfortunately, I have no interest in joining Medium, a platform that seems designed to be a self-help site rather than a provider of useful information. 

But I digress.

BitTorrent X is nothing but a bunch of hot air. So please don’t waste your time with it or BTT.  

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2021/06/bittorrent-x-waste-of-time/.

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