On a daily basis, I come across postings about how 'ALL ALT COINS ARE SCAMS', or something to that effect, and surprisingly, even people I HIGHLY respect, I have heard or seen them utter something similar.
Having been around Bitcoin since it was under $5, I have seen the mountains BTC has had to overcome to survive and thrive. It has been beautiful! I love bitcoin, as many of us do, because it is different and represents a hope for a better, more fairly connected World. Bitcoin has created a trusted store-of-value(SOV) in a trustless system, no matter what Nation's borders you reside in. People in Greece, Venezuela and Zimbabwe understand all to well the importance of Bitcoin, it has given them a chance to protect their wealth. This is why bitcoin is different, it is not just a SOV or a currency, it is a light in the darkest of places.
It is from this viewpoint, that I think people tend to view Alt coins as 'scams', comparing the coins to bitcoin is a mistake. Bitcoin has filled a massive void but their are many more voids to be filled through blockchain tech. Also, since bitcoin has evolved into a SOV it has and will likely continue to outpace many altcoins in terms of % gains for some time. One other thing is that usually trades are measured in /btc so a rising bitcoin slowly brings down the price in btc. This does not make the other projects scams, just possibly less attractive at the moment from an purely investing standpoint.
Blockchain tech, the tech developed to create Bitcoin, is the real invention, Bitcoin is just the first 'app' to utilize it. Bitcoin was created by the same guy, Satoshi Nakamoto, who created the blockchain tech as a way to show everyone what a blockchain could do, which is eliminate the middleman/governments/bad actors in transactions. This blockchain tech is now being utilized by dozens and dozens of coins aiming to solve the problems that arise from greedy middlemen dominating virtually every industry(i.e. music, industrial supply chains, banking), and without a doubt, some of these ideas/coins should be wholly supported, after due diligence, because they are offering us a better way to do the things we do anyway at a fraction of the cost to do business is now.
Here is an example. You want to invest $100 in the stock market, you have to pay a $10 fee to buy and another $10 to sell. That is about 20% of your investment $. Binance, whose alt coin trades as BNB, is a marketplace where fees are 0.05% per trade, or $0.05 fee on that same $100 investment. This is what eliminating the middleman looks like.
By the way, here is my referral link for binance if you still have not opened an account,
https://www.binance.com/?ref=10201898
Follow me on twitter @gank for more crypto analysis.
Keep swinging!!
(photo credit: b8coin.com)
Interesting post, thanks for sharing!
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