Is BTC Different than Cryptocurrency?

in #bitcoin6 years ago (edited)

The entire crypto class will eventually see another surge but the thing to ponder now is with every crypto market cycle a fresh batch of coins comes along. Which ones of those will out do their predecessors in terms of technology and which ones will be popular from a speculative point of view. There is one respectable group of investors out there such as Jack Dorsey that pretty much say Bitcoin is the only place to go when it comes to crypto. I don’t fully agree but this idea should not be dismissed either. Ie Put your faith and money in BTC and wait for the next speculative bubble before trading alt coins. Another similar approach would be to consider Coinbase’s selection of listed coins as a guide to quality in the same way the Dow Jones stocks were once viewed.

BTW: Gold has a similar situation where over the long run it acts as a store of value while in the short run it trades in response to currency markets and even commodity cycles. Other metals are less like this ( silver , platinum) somewhat.
( litecoin, Vertcoin, Bitcoin Cash?).

You can take this a step further and look at any crypto that functions like BTC gains it’s value for its ability to act as a fractional unit of BTC in the same way silver, nickel, copper were used in coinage that was ultimately exchangeable for gold. Otherwise the best money (gold, BTC) is hoarded (Gresham’s law). Without this crypto wouldn’t function very well in everyday use and we would be right back to the argument for fiat.

Morgan Stanley says Bitcoin is a new type of asset - The Next Web via BTCnews on iOS
https://thenextweb.com/hardfork/2018/11/01/morgan-stanley-bitcoin-asset

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