Altcoin Opportunity While All Eyes Are On Bitcoin
Bitcoin has run up extensively since my last video and is now nearing $8,000 at the time of writing this. Bitcoin still has plenty of room to grow as people invest due to FOMO and over excitement for $10k by year end, a target expected by many investors for zero practical reason other than it sounds nice.
Lately I've found more people excited about getting rich off Bitcoin rather than off the adoption of Bitcoin. If you've watched / read my previous content, you know I've been on the fence about whether or not Bitcoin is a bubble. I believe part of the run-up is due to loose monetary policy, which has led to investors chasing performance as all asset classes appreciate in value. I would like to start exploring the subject of the "Bitcoin bubble" even further and come to a final and decisive "yes" or "no" answer. Leaning towards a strong "yes" right now.
In terms of other cryptocurrencies, I remain bullish on Ethereum depending on time horizon of investment. Any level below $300 remains attractive. Litecoin is rising as a result of the first Lightning atomic swap between Bitcoin and Litecoin. As great as this is, I don't see it as all that relevant as atomic swaps are far from being a useable solution for decentralized exchanges that the present value of such events should be small. However, Litecoin has been underappreciated recently against Bitcoin so it's a moot point.
Other altcoins remain attractive as they are still at low levels relative to Bitcoin since its bull run in October. I am looking at TenX now, mostly because the product should help bandaid an important problem for cryptocurrencies in short-term. However, the risk is that they are unable to deliver, so I am keeping my position size small. Hopefully prepaid debit cards are no longer a necessity in the future.
Lastly, expect more high quality content moving forward. I don't want my channel to be about market updates all the time. I want to help uncover methods to value cryptocurrencies, identify risk factors, understand the tech more than most investors, and relay all this information in a concise, laymen format for all of you. This takes more time, but I think it'll be worth it in long run. Hope you all stick around.
Hope you all enjoyed the post. Moving forward with this account, I'd like to start producing more high quality content that come with corresponding articles (what you see above is a short description, not a fleshed out article). When I write articles, I am forced to cite more of my sources, find more charts and quotes to support my statements, and find outside examples that are relevant to a particular situation. In the end, it results in content that is much more robust and stands the test of time. Not only that, but it provides more value for the audience too.
There are many unanswered questions in this field from the investing side, and it seems Chris Burniske is one of the only people taking a serious stab at it while also sharing his thoughts with the public. Aswath Damodaran has also made some attempts, but it is not his main focus which is unfortunate as his contributions to the field would be excellent (he's a valuation guru from traditional finance world).
There are many detailed pieces out there on cryptocurrencies, but many struggle to fuse the tech with finance because most people only have experience in one field or the other. Most people who only know finance are horrible at understanding tech and even more people who know tech are horrible at understanding finance because it requires an entirely different mindset (literally the other half of your brain). Admittedly, my strong suit is finance.
However, I continue to devote more and more hours to tech because it IS important for understanding future potential from an investing perspective. Right now, very little tech knowledge matters because cryptocurrencies aren't valued based on reality in my opinion. But at some point they will be, and it will become much more relevant. At this point, it is exceptionally important at understanding risk factors. It also helps identify problems that will heat up in future which will ultimately have an effect on price.
All of this is to say (since I am getting long-winded here) that I hope you stick around because I would like to start delving into these topics more (still with the primary focus being on investing). I'll still do market updates because let's be honest, we're here to make money. But some day, this won't all be roses and knowledge is the best way to prepare for that day. Thanks for watching as always!
I really enjoy getting your perspective on cryptos. I will do my best to comment and share my knowledge.
I'm personally not a big fan of ETH, if you are to research the technicals of an alt I would look into EOS which is a more foundational version of what Steem was built on.
Disclaimer; I'm somewhat invested in EOS, but mainly in BTC and STEEM.
The core difference between EOS and ETH is that ETH use a gas model for capacity allocation (like Bitcoin fees) while EOS uses an ownership model where for example ownership of 1% of the tokens would equal 1% of the network capacity. There are other major difference in terms of governance and capacity coming from the use of Delegated Proof of Stake (DPOS) vs POW.
Given there are already 100s of working apps built on top of the Steem blockchain (almost a new one everyday) I have no doubt that a similar technology built from the ground up with governance, scalability and generalization will thrive with web developers building apps that see mainstream usage.
I believe ETH is fundamentally broken, not a single meaningful working dApp yet build on it apart from ERC20 contracts (ICO tokens) but ETH benefit from having a huge network effect / hype. That's why I'm so torn between investing in STEEM or EOS because given Steem current rate of ecosystem development and it's social nature it could grow a very powerful network effect while EOS will EVENTUALLY have better tech. (launch of network in about 8 months).
He're one of the first video explaining EOS
Awesome! Looking forward!
What do you think about Reddcoin chance of mooning?
Yes, as you have noted, ALT's has some good oportunities. Some ALT's potential is nothing but huge. Only one major problem with ALT's ( as I see them):
There are 1293 ALT's on a list
If your selection becomes a winner - you become a winner. If not - just another loser.... :)
Just as with stocks, the smaller the market cap, the more gambling you are doing. Smaller caps require higher amount of due diligence and you're also often at an information disadvantage with other investors for these projects. As such, it's generally better to stay with those within top 50, delving only past that for cryptocurrencies that are either promising or have a ton of "shilling" support, as regardless of merit these types of cryptocurrencies tend to pump.
Top 50 to tough for me. After 6 yr in crypto space, I still advice a new commers "look no further then top-30" 😳
I like TenX, EOS, Metal, Ethereum and Litecoin.
But you can never win if you don't try to be a winner.
Enjoyed your post a lot, instant follow! You look like a man who really knows what he is talking about, good luck in future projects! I recently started to research multiple topics about cryptocurrency, but your stuff is next level. Thank you!
Bitcoin doesn't really have much going for it other than hype, im also on the fence as to whether its in a bubble or not, on the one hand it could easily be overrun by a competitor but it could still have a long way to climb until then.
The point about people wanting to get rich off bitcoin is a good one, most people are in it for the money and not what it represents (myself included) and as soon as widespread adoption of crypto happens and a better version comes along as the new favorite bitcoin will dissapear.
Now there are quite a lot of attractive for investment crypto-currencies, which are much cheaper than bitcoin and more stable. Investing in them, not just in bitcoin, is the key to success.
bitcoin is on demand
Perhaps in future, present more content or reduce the length for a quick read. Making reference to past content, without a link to that content, is a wasted opportunity. Look forward to future post.
i like it
You can never solve a problem on the level on which it was created.
- Albert Einstein