2018 has been a real catastrophe for the crypto classes so far. While we believe in Bitcoin more firmly than ever, we have doubts as to whether the majority of Altcoins will ever reach their all-time highs again.
Think back to 2014. Back then, Bitcoin's Top 20 were , Litecoin and Ripple XRP. The remaining places were taken by exotics like Peercoin, Terracoin and similar. How many of these coins are still relevant? The big bear market of 2014/2015 has survived only the three leading ones: Bitcoin, Litecoin and Ripple XRP.
So if you can compare the market of 2014/2015 with today's, you should rather think hard what may stay in their own portfolio. It's hard to accept losses, but limiting losses exposes a mature investor.
It's always important to look at history, because whoever learns nothing from it runs the risk of repeating it. But you also have to remember that much has changed since the last bear market. An example is the market capitalization. In 2014, the total market capitalization was approximately $ 2 billion. That was about 100 times less than today. Not to mention that in 2014, few people had ever heard of Bitcoin or knew what it was all about. Today, the whole world knows Bitcoin, especially with its high-altitude flight at the end of 2017. Nevertheless, we are still in the early days and only a small part of the people are holding cryptoassets.
There is still much to be done. Still, the crypto market can be compared to an insecure, hormone-driven teenager who “threw a pill” at a party for the first time and now believes that he has recognized the meaning of life.
In the latest ” BitMEX CryptoTrader Digest, “said BitMEX CEO Arthur Hayes, with some startling details. It was about the crypto bubble of the year 2017. In essence, it should have been proceeded on the principle: “stuff me my pockets full and I stuff your”. As Hayes writes:
“The real profit in 2017 was made by the Ethereum holders, Shitcoin projects and the promoters. The capital stock for many of the reputable crypto-hedge funds stemmed from over-large gains from held ethereum and token projects. Envious old-school venture capitalists turned portions of their funds into ill-conceived hedge funds so they could bet on shitcoins. Everyone came with information about the same businesses and believed they understood it. It worked well in 2017. “
All in all, we are optimistic and believe that the current bear market is likely (or hopefully) shorter than 2014/2015.
How to judge which coins will survive?
First of all, let me say that I will not discuss Bitcoin, Ethereum and Ripple XRP here. If one of these leaders does not recover, then we have very different, bigger problems.
Here's a list of things we think are important to a coin's survival:
– Strong Community
– Genuine, Branded Product
– Elite Team
– Fully capitalized (many projects do it because their funds have been invested in Ethereum, but Ethereum has dropped 60 to 80 percent since the 2017 Initial Coin Offerings.)
– Old projects that are still relevant (Lindy effect)
– Projects that enjoy China's support (if you have not already should have noticed: China is about to take the lead in global technology)
Another way of assessing the survivability of projects is to put them in one of three ways n categories. Category 1 projects have the best chance, while Category 3 has a high failure rate.
– Category 1: cryptocurrencies – best use cases, longest history, such as Bitcoin, Litecoin or Monero.
– Category 2: Platforms / Protocols – have the advantage of being shielded from other projects based on them; some of them have a lot of capital (like EOS)
– Category 3: dApp tokens – unfortunately the world is not ready yet; therefore, these tokens are likely to become extinct like dinosaurs.
In the following days, we will publish a brief analysis and forecast of the top 8 altcoins likely to outlive the bear market: EOS, IOTA , Binance, Litecoin, Monero, Stellar Lumens, NEO. Sources: BitMEX Crypto Trader Digest, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/wieso-eos-stellar-iota-waltonchain-Binance-litecoin-neo-monero-die-altcoin-apokalypse-berleben-werden/
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