Why Blockchain Maximalism Is Downright Foolish

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We see a lot of proponents of Bitcoin, especially with the recent run in price of late. This brought them out of the deep slumber since the alt-coins have lagged. The percentage of total marketcap made up by Bitcoin is now hovering around 60%. Some are even going as far as to state that alt-coins are dead and will not leave the crypto-winter.

Maximalism is a bad idea simply because it is essentially "putting all one's eggs in one basket". This is a really not a good move to make.

When it comes to investing, I often am not usually a proponent of diversification. Often people do this out of laziness while, ultimately, doing very little to reduce risk. Too many believe they are protected against market pullbacks by having assets in different sectors. Unfortunately, when things head south, all ships of late tend to sink.

That said, when it comes to cryptocurrency, I am a firm believer in diversification. This means moving away from blockchain maximilaism into the embracing of many different tokens.

There reason for this is simple: cryptocurrency is not so much financial as technological".

It is vital to remember we are dealing with technology. Thus, it is impossible to decipher who the winner will be.

To those who are old enough, there was a time when the early leader was Beta over VHS. Yet, isn't it ironic that millions of people have boxes full of old VHS tapes in storage while very few have beta. All those who made investments (bets) on beta were left out in the cold.

Does this mean I think Bitcoin is going to be replaced? Not anytime soon. I am optimistic about the future of the leading cryptocurrency, mostly as an eventual store of value.

Personally, I do have some BTC along with ETH and LTC. On Steem, I am amassing other tokens in addition to STEEM (SP). To me, this is a wise move since I cannot honestly tell you which coins are going to be around in 5 years. All of this is speculative since we are dealing with grand experiments.

Beneath all of this is the underlying technology of blockchain. I feel this is poised to severely impact every aspect of society over the next decade. Of course, this does not mean it is the final destination. In fact, the greatest likelihood is that blockchain is just an iteration on a longer process. There will be a technology to replace it. My view is this will be some time down the road.

Without a crystal ball, it is impossible to know who will come out on top. I feel cryptocurrency is offering people the opportunity of a lifetime. That said, while Bitcoin might be the grand winner, I am not willing to bet it all that Bitcoin will be the sole winner.

To me, diversification enables me to back both Beta and VHS.

The other aspect to all this is we need failures. It is from our failures that we learn. Even the scams provide us with feedback that can help us to do better the next time. All that took place in 2017 made the industry stronger in 2019, even though it didn't feel like it at the time.

It is up to each of us to support as much as we can. On a blockchain like Steem, we each are essentially venture capitalists using our stake (and time) to back projects we are optimistic about. Obviously, not all will work out as the road map states.

By spreading one's efforts and stake in different areas, we enhance the likelihood of success, both our own and of the entire ecosystem.

This does not happen if one has the maximalist view.

And that is why I think it downright foolish to take this approach.

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