Which cryptocoins should you pursue?
The more I learn about this space the more my mind changes. Like many, at first I thought only one coin could “win” the battle to be the next digital currency. Then I started to appreciate all the different reasons for so many alt coins. It’s not too dissimilar from means of communication. For example, just because you have Facebook Messenger or SMS it doesn’t mean you don’t need email or Slack. My objective is to own coins that will rise in value and have a real world use case so how can I figure that out?
It’s starting to be apparent to me that Bitcoin and Ethereum have advantages that likely will not be overcome by competing coins. The recent hard fork in Bitcoin is an example of a successful (so far) innovation in the worlds largest digital instrument. As time goes on it’s likely that you will have more and more forks that will continue to add features. Many of these features will be added at the expense of other coins who only existed because of those features that differentiated them from Bitcoin. Bitcoin has the developer and community resources to press its advantage here. What if Bitcoin can easily add the privacy features of Zcash or the payment functions of Dash? All these coins are trading heavily vs. Bitcoin over the last few weeks and I expect more of that to continue.
Ethereum is a very different platform but the same logic applies. There are lots of Ethereum knockoffs showing up in the market and some may be useful but I don’t see why I would want to own them at this point. So what do you buy?
Aside from owning Bitcoin and Ethereum I’m spending my time finding specific use case coins that solve a real world problem. I currently own Mysterium (MYST) which is a decentralized VPN service and I’m interested in Bitbounce (token is called Credo) which aims to stop email spam by incentivizing the process with payments. None of these are sure bets but they are targeting areas where innovation is needed. The same can’t be said for many of the copycat or incremental innovation coins. In a future post I will get into some of these alt coins and what I look when I buy them.