RE: STEEM and BTS going Prime Time!
To answer this very interesting question we have to factor in number of things. The most important one being the GDAX Digital Asset Framework, which essentially is the criteria by which GDAX adds coins to their platform.
For obvious reasons I can't discuss all the criteria as I am not an economic expert, everyone can see them here https://www.gdax.com/static/digital-asset-framework-2017-11.pdf
I think that everyone should take a good look at this list and try to understand what these people are looking for.
I personally am going to cover this topic in my blog later on as this needs a deep research before writing. I hope this helps :)
P.S. I really don't think they have a problem having as little as 7-8 assets. They are coinbase, they don't have any competition. Things might get interesting in the near future.
Very nice resource. Thanks. Looking forward to your blog post later on.
As for the criteria, it looks very good to me, especially with STEEM and BTS scoring high in the first three and the last main areas, and only less than high when it comes to market supply and demand (which will only improve as time goes on).
I think 7-8 will be difficult to sell as it is a highly speculative investment to begin with and, being so, demands more diversification, but that's just my opinion.
To be honest I don't know if that is the case. Investors that are going to put their money with the Coinbase fund are likely aware of the risk. Also what does diversified portfolio mean in crypto ? If BTC goes down, they all go down if BTC goes up not all of them follow immediately. So the bottom line is that even if you are extremely diversified, so far every coin out there follows BTC more or less. The correlation is extremely stromg, which makes their pitch about the limited basket of coins look easy.
Just my opinion also. Definitely very possible to add 20 - 30 coins. I guess we will see very soon :)
The correlation is strong, until it isn't. I don't think it's a question of if, only a question of when the big potential "upstarts" decouple with the generalized correlation. Being market weighted BTC is bad enough, and limiting the portfolio size only makes matter worse. Risk increases as potential reward falls. It should be the opposite in my view.
I understan your point and agree in general. But looking at this market - The common thought process is the following
I am not saying that this is good or Coinbase should have 3-4 asssets, I am saying that at the moment people prefer to have BTC compared to alts and that could be seen from the charts.
Personally my long-term portfolio does not have any BTC or ETH as I believe Blockchain 3.0 will be much more preferred.
Thanks for the discussion, it's really great to have a meaningful discussion on Steemit, happens rarely to me.