It is the end of October, 2017, and cryptocurrencies continue to gain attention.
Most indications are that the cryptocurrency space is about to absorb a lot of money and swell. A lot. Probably pretty quickly.
While this brings incredible opportunity for expansion to those involved, it will also bring more than a few dramatic implosions. As usual, smaller scale implosions are a necessary part of the expansion of the whole.
The Cryptocurrency space can be divided into Bitcoin and Altcoins, which is any cryptocurrency that is not Bitcoin. As of the end of October 2017, Bitcoin has about 57% market share of the entire cryptocurrency space. Over 1100 different Altcoins are responsible for the rest of the market share.
Bitcoin is built on sound principles by experienced people with clear foresight and an understanding that every decision involves give and take, gain and sacrifice. It has consistently proven itself against constant real-world threats, attacks and surprises for nine years running.
At nine years old, with a $100 Billion market cap, Bitcoin is still here, and is stronger than ever. It will be beaten down again, and again, it will become stronger than ever.
Altcoins are built on Enthusiastic Possibilities of the Young, which makes it exciting, boundless, and not without consequence, implosion, surprises. Youth gains wisdom thru experience and there’s plenty of Youth in the Altcoin space right now.
Their experience today is the foundation of the wisdom they will call upon in 20 years, when they’re creating the next human-transformative thing.
Altcoins are like the cryptocurrency R&D department, which is absolutely necessary for the advancement of the crypto world. R&D today brings advancement tomorrow. But it might not be the best investment today.
Unless you’re comfortable with high-risk speculation and losing a lot of money a lot faster than you made it, Altcoins are not a place for your money. Especially when there’s Bitcoin.
A closer look into Bitcoin’s foundational design principles shows that the various benefits over bitcoin touted by many Altcoins are in fact drawbacks to the system which Bitcoin Core Developers decided against.
Litecoin brags about a quick 2.5 minute block size, but Bitcoin chose 10 minutes for very important reasons which will not manifest themselves in Litecoin until Litecoin scales up. Larger scale introduces weaknesses that are not apparent at lower scale. If Litecoin were even close to Bitcoin’s size, they’d be having major problems. Same with most if not all Altcoins.
Scaling issues, lack of foresight, lack of seeing the entire picture, a strong propensity to take the obvious advantage now while ignoring the inherent sacrifices, make me question the ability of any Altcoin to expand by any significant amount.
As soon as these untested Altcoins grow to a certain point, they will implode, especially if the growth is fast or sudden. Ethereum, the largest of the Altcoins, has already imploded more than once and at the end of October 2017, seems to be on the verge of another collapse.
The hash function of a certain altcoin is a known vulnerability. It has been hacked and can be hacked again. The altcoin is still growing because of blind speculation.
The cryptocurrency space is a good place to pay a lot for an adrenaline rush and wake up empty.
Just buy and hold Bitcoin.