Why its a good idea to invest in altcoins rather than bitcoin

in #cryptocurrency7 years ago (edited)

Bitcoin is the torchbearer in the booming world of cryptoeconomy, a true digital gold, but is it good for investment now?
Let me summarize why its may not be good.

1)Bitcoin could be overpriced

Every tradable asset has two values, its intrinsic or true value, and the speculative value. Speculative value arise when people consider that asset as an investment fro future on the hope that, in future its price will increase. In the case of bitcoin we dont know the true value, but in most possible way it could be much less than todays price. Reson? Have you ever seen people using bitcoin anything other than for investment?As a currency for buying groceries? paying bills?.So if you bet your money on bitcoin now ,there is a high probability that, its price could drop to its true value, losing your hard earned money along the way. But if you consider altcoins, for most of them, price is much lower, possibly near or much less than the intrinsic value of the underlying technology.

2)Naive and sentimental investors

Most of the people who invested in bitcoin are naive who just went along the Bitcoin hype, "everybody is investing in bitcoin, then why not me?". I can bet you that, most of them doent have a clue about the underlying technology. i.e BLOCKCHAIN. So the problem is that, reason why they invested is not because they are "amazed by the beauty of block chain technology" but simply because 'everybody is saying about bitcoin' 'celebrities saying good about bitcoin'. I hope you understood the problem, if everybody or even a celebrity started saying bad about bitcoin, they will run for their money crashing the price. Compared to that, altcoin users are more technically oriented ones. They know about blockchain, they know about the technology that particular coin is offering, and they are betting on that uderlying technology, not on some mass speculation.

3) Low price of altcoin

Most of the altcoins are trading at very low prices compared to bitcoin, that means there is a huge potential for growth if you invest your money in it. For example, there are lot of altcoins which is trading near to 1$. If you invest in one of them, and in future if that technology succeed, there is a good chance that, the price could reach 100$ multiplying your investment 100 times. But imagine you invested in bitcoin now, its price is already at 4000$ if in the unlikely event that everything went well, then its price could reach a maximum 10000$ within 2 year, your gain? just around 2X

4) Altcoins are not just coins

If you are new to the field of cryptocurrency , you might think that, altcoins are just cryptocurrencies like bitcoin which maybe using some other technology. But that is far from truth. In fact most of the cryptocurrencies are revolutionary ideas
which could trasfrom how we live in future. What you see as the listed altcoin is just their monetary token. For example, GOLEM project is actually a distributed supercomputer project that anyone can use. People can sell their idle computer power for GOLEM currency. So if you are buying golem you are actually buying in to their idea.

5) Altcoins are easy to mine

In the initial days when a cryptocoin is started, the mining difficulty will be low, so that you can mine coins with CPU alone.So this is a good opportunity so that you can make an investment without spending money.

6) Some altcoins offer passive income

passive income from altcoin is like a divident by a company for their shareholders. That means just buy keeping altcoins in your wallet you can earn money. This is part of new DPOS technology offered by some altcoins. Example: Ark Coin.

So you may ask me, what if the altcoin didnt succeed? Sure this can happen, but there is an other side, not all are gonna fail isnt it? some are gonna be huge success which can make you a billionare. So how could we identify the correct altcoin which is gonna be a success. sadly there isnt a single failproof method to it. All we can do is that finding out a couple of coins which has a high potential for success. and divide and deposit your money on it. Imagine you deposited your money on 10 altcoins,and 9 failed and 1 succeed , but that gain from 1 coin might be enough offset your losses on other coins and make a you billionare.

I heared lot of people say "Bitcoin is here to stay" but the truth is that "Blockchain is here to say" so bet on blockchain, the underlying technology, not on any single currecny.

note: All I said above are just my opinion on this subject, sometimes a maybe wrong. Just think yourself and reach conclusion.

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Not bad idea but wait till September 30

did u hear btc is temporally banned in china soon??
now is the chance to earn btc...
i found a great miner i earn 5000doge a day with just 50$
anyway here is the link, im happy to help :)
https://victorymine.com/?ref=stiffywalsh

thanks for sharing

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here's another option and sets of explanation why altcoins we're good.
https://www.investinblockchain.com/altcoins-hodl-2020/

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