How logical is it to invest in altcoins?
How logical is it to invest in altcoins? There is a long-standing struggle between the leading cryptocurrency Bitcoin and altcoins. An analyst recently drew attention to this issue and expressed his views on buying altcoins.
How logical is it to invest in altcoins?
There has been a particular interest in altcoins since the crypto craze of 2017. Because in the aforementioned previous bull cycle, some altcoins made huge gains against both Bitcoin and the US Dollar.. For example Ethereum rose 100x over 15 months. ETH had risen from single digits to as high as $1,400 in early 2018.. As a result of this trend, Bitcoin dominance dropped from 90 percent to 33 percent.. Of course, in such an emerging market environment, many altcoin traders were proudly announcing that “the king is dead and the altcoin era has begun” from the peaks they have reached.. 60 shares belong to king Bitcoin.
Woo states in his last tweet that altcoins are “highly correlated with Bitcoin”, and therefore, they do not act as portfolio diversifiers.. On the contrary, according to him, altcoins “only increase portfolio risk”.
Woo had responded to those who expressed criticism about BTC in his previous tweets.. According to him, many describe Bitcoin as “old technology, very slow”. However, the analyst emphasizes that Bitcoin is the only cryptocurrency with a solid Lindy Effect.. According to the Lindy Effect theory, the longer a technology/entity lives, the better its chances of survival.. It should also be noted that. Bitcoin represents the first move in the cryptocurrency space. While there are no ICO reserves or venture capital funds, it clearly also has the greatest network effects.
When it comes to buying altcoins, or vice versa, investing only in BTC instead of altcoins, Woo concludes. According to him, if he had to invest his assets in an asset for 10 years without ever selling, Bitcoin would be his “only option” in this regard.
Prof.. Dr.. Emin Sirer Gün, on the other hand, thinks that 99% of altcoins are garbage.. In the meantime, it is worth remembering that there are over 6 thousand altcoins.
Don’t forget altcoin season
On the one hand, Bitcoin-centric portfolio may be best for the long run. However, some analysts also remind that altcoins can start a rally on their own.. Of course, you can call it altcoin season if you want.. Would it make sense to buy altcoins in such a situation?
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