I have been closely watching the Bitcoin scaling debate and the result on the markets. Every time the bitcoin price tanked because of new issues in the scaling debate, altcoins that promised to be ‘better’ than bitcoin skyrocketed. This was caused by speculation that Bitcoin would fail to scale and one of these other coins would replace it. I think now this situation is over, so yesterday i wrote this article:
In the mean time Ethereum experienced a huge bull market where everything seems to be perfect and negative aspects didn't exist
Ethereum is facing it's first maturing problems
When the Ethereum price reached it’s ATH of 400 USD, problems started to pop up. The first scaling issues came into play and the network experienced instability and a flash crash. Since then the price went down 50% already. I expect it to tank further to around 100 UDS, what makes it a comparable crash that bitcoin has seen in 2014. When the Ether price was around 350 I knew the positive times were over and Ethereum was entering an era of problems that comes with getting mature.
Also the SEC came into the picture this week and will cause many regulatory problems, so I expect the Ether price to go through a longer period of consolidation when the current crash is done. I don't think it will immediately rise again, the price will be pushed down by issues following up each other. Also the shift from POW to POS could deliver some volatility.
I think history will repeat and every time when the Ethereum price goes down because of a certain problem, ‘better Ethereums’ will skyrocket
So here is my idea:
In the last year many new crypotocurrencies came in existence that have the same features as Ethereum, but came with some improvements. In the last month I been buying Antshares, EOS, Tezos and Lisk to speculate on trouble for Ethereum and the market looking for a ‘better’ product. I think the market will follow the exact same path as bitcoin did, and if this happens the 'better Ethereums' will profit in each downturn of Ethereum.
Disclaimer:
In this post I describe my own thoughts on the market and my own trading decisions, so it is no investment advice. The here described strategy is highly speculative and could by risky. Everyone is responsible for his own trade / investment.
Do you(dis) like this post or do you have something to add / discuss. Please let me know in the comments below
Ethereum has been in development for only 2 years. While these other alternatives have their advantages, there has been more development work to improve Ethereum and offer some of the same advantages. Some would say that this is like comparing Bitcoin to alt-coins.
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I agree on this. I not say in my article that Ethereum is not good and will not have a good future, but I expect for the coming months at least, a periode with many problems and Ethereum like alts may profit from that. In my opinion Bitcoin is still the king, but the last half year many altcoins profited from the headwinds, it has been a good short time investment to invest in those, even when bitcoin will probably prevail over the long term.
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I think investing in alternative-Ethereums is a very smart idea since they have the potential to rise much more than Ethereum relatively. I personally favor Antshares in the short to medium term as being able to net you a bigger profit than Ethereum, and EOS for the longer term.
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Yes I think Antshares is interesting because it is Chinese and there is a lot of money ready to be invested there. EOS could be a very interesting project for the long term, but the downside is that there is not really a live product yet and the ICO is hyped, so it may have entered the market being overvalued from the beginning. Combining the fundamentals with the market forces I describe in my post I think they are all investments with a big potential.
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My vote is Lisk. :)
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I am exited about Lisk too, but they all could go to the moon. I invested about even amounts in these 4 coins
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Good post, thank you for the insight, I have followed you feel free to return the favor @michiel
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