Why Bitcoin is a SUPERIOR Investment Over Altcoins Now



today we're gonna talk about the rise in bitcoins dominance against altcoins and why I still believe their coin to be a superior investment at this time ever since the start of this massive cryptocurrency gold rush in March of 2017 there has been cycles where all coins have drastically outperformed Bitcoin and Bitcoin has drastically outperformed altcoins the easiest way to keep track of this is through coin market caps Bitcoin dominance chart as you can see March to June was a period where all coins crushed Bitcoin most notably the flipping almost occurred that is where aetherium almost took over Bitcoin and market cap however Bitcoin rapidly recovered some of its dominance and there was a period in August where every single day I felt like the coin would go up and all coins would get slaughtered the real pain for all coins came in October though where Bitcoin broke through $5,000 for the first time the Bitcoin cycle ended in the beginning of December and since then we have seen a steep drop in bitcoins dominance from a peak of 65% all the way down to 32% before recovering to where we sit now at around 39% now generally speaking I've always found it to be best to position yourself on the side that's out of favor there is research that was done by renowned economist Richard Thaler and Nobel Prize winners fama and French that have Illustrated over the long term contrarian strategies tend to work because of a very simple principle called reversion to mean however you don't need to be an economist with tons of empirical evidence to understand why this happens in my opinion this occurs due to the fickle nature of investor psyche and the way the voice of the crowd works in the cryptocurrency space this is even truer than it is with stocks because prices are more volatile the market is relatively new and investors involved are generally younger less experienced less wealthy and desperate what I've seen happened time and time again is that when we're in an all coins cycle Bitcoin has claimed to be dead and an outdated technology and while we're in a Bitcoin cycle the Bitcoin maximalist come out in full force I remember recommending aetherium on this channel back in October when it was trading at around five million Satoshi recall that we were in a Bitcoin cycle at that point so aetherium kept going down and there was a Bitcoin maximalist on Twitter who followed me that would send me the ETH to Bitcoin chart every single day and I remember I recommended aetherium again on December 5th at around three point nine million Satoshi and I believe it was like the next day or two days later where it fell to a low of around 2.4 million Satoshi before it eventually skyrocketed back up and I believe it's sitting at around 8 million Satoshi now so if you go back to some of my earlier videos you'll see that I recommended all coins frequently as we saw Bitcoin receive all of the attention due to the Bitcoin gold and segment 2 X hard fork hype now that may not have panned out in the short term and trust me there was a lot of people who pointed that out but it ended up working out well once December rolled around and we saw the end of the Bitcoin cycle now they say that being right at the wrong time is the equivalent of being wrong but they often say that when referring to cycles in the stock market and the economy which take years to play out so being wrong can result in drastic underperformance for very long periods of time which usually results in clients leaving your firm now fortunately in the cryptocurrency space cycles appear to happen much more frequently and usually only over a period of a few months meaning if you're right at the wrong time it doesn't take long for the markets to catch up note that cycles between Bitcoin and all coins have existed for years but those syclo swings have become much more extreme recently which means better opportunities for us as investors and swing traders with Bitcoin segmented option increasing the coin base and Biff and X being the latest on board we've seen a drastic fall in the average fees on the network now it's worth noting that a principal reason for why fees have fallen is because Bitcoin transaction volume has plummeted although on the plus side the number of outputs per transaction has been increasing which signals that more service providers are implementing batching now one of the biggest narratives for why all coins have been rising in dominance was due to Bitcoin sluggish and expensive transactions but obviously both of these factors have become substantially less problematic partially for the right reasons aka seg wit and batching adoption and partially for the wrong reasons aka Network load has decreased or the transaction volume has decreased however I don't think the majority of market participants are looking into the why and they're really only focusing on the end result which is that Bitcoin is finally becoming more suitable as a payment option again who knows whether or not companies like Valve will start accepting Bitcoin again on Steam but it is less likely that merchants that are currently accepting Bitcoin will drop it as a payment option at this point it's still safer to accept Bitcoin as a form of payment than any other cryptocurrency due to familiarity dominance and maturity I have stated before that realistically the only serious reason and merchants should accept any cryptocurrency is to increase sales through marketing hype not because it offers any serious advantages over alternative payment methods I know that probably pisses some people off but the reality of the situation is that between the lack of clarity surrounding accepting crypto currencies as payment and its impact on a company's books its impact on taxes the legality questions surrounding it the frustration of dealing with returns and the insane volatility in the market accepting most crypto currencies is generally going to be a hassle for the overwhelming majority of business owners and I still think the most valid reason for accepting them at this stage especially for monpa businesses is so that cryptocurrency enthusiasts will spend a few extra bucks at your store now obviously this isn't true for all business particularly the ones who are familiar with crypto currencies but it's going to be true for most of them and if you're relatively unfamiliar with crypto currencies you'll probably want to default to the one crypto currency that everybody talks about which is Bitcoin even at this stage most people have really only heard about Bitcoin and don't know what a cryptocurrency is they don't know what aetherium is they don't know what Ripple is like coin or any of the other crypto currencies we like to talk about and think are obvious to know about that familiarity with Bitcoin along with the fact that Bitcoin has been around the longest is still going to lead to higher adoption for it over other crypto currencies specifically as a payment option but in all honesty I don't think adoption is the key factor that is driving these cycles between all coins and Bitcoin when all coins rose and dominance it had very little to do with adoption and more to do with marketing hype the more coin promised the more money that was pumped into it partnership announcements would cause a coin to soar even if that partnership was relatively unimportant or preliminary in nature the same was true for Bitcoin during its last cycle in October we had just recently lost China which is one of the biggest sources of Bitcoin trading volume and people were buying into hype over a fairly obvious joke fork Bitcoin gold and the community splitting fork segment to X and to this day I would say no one can say with any degree of certainty why Bitcoin rose to $20,000 from November to December other than momentum and hype these cycles seem to occur as a result of a shift in the voice of the crowd and an increased number of bag holders on the wrong side of the cycle in my view this is sort of how cycles shift the first group to move over is the people who suspect that a new cycle has begun and who aimed to get back in to their original positions at lower prices later on the second group to move over is the momentum traders who are generally going to wait for a strong sign that we are definitively in a new cycle before moving the assets over for example this group may wait for dominance to rise over 40% and show some stability over that level before moving over and then the third and final group is kind of more of a wave which is the bag holders who see other people moving over and making more money than they are now once this final wave completes the cycle is over and we start moving over in the opposite direction now some of you might be pointing out there are times where there is a clear paradigm shift in market dominance as we saw in March of 2017 what is to prevent such a situation from occurring again why can't the long-term dominance of Bitcoin fall to 25% 15% or even 10 percent this is especially true when you consider a major reason for bitcoins dominance is the fact that it provides the most liquid trading pair against all other crypto currencies however recently some exchanges have been announcing that they would like to add direct Fiat gateways to all coins which means you wouldn't need Bitcoin anymore to buy them now my short answer to this is there's nothing stopping long-term dominance from falling to 25% or lower it's a very plausible and possible reality however I suspect that we're still too early stages for decentralized applications to take off based off of what we've seen so far if crypto kitties is the best we can offer at this stage then we've got a long way to go for the quote unquote web 3.0 now crypto currencies that are aiming to become payment options are probably going to struggle against Bitcoin for the reasons I discussed earlier regarding familiarity dominance and maturity in other words lawmakers for example are gonna focus on Bitcoin they're not going to be thinking about crypto currencies like nano in the majority of cases which is one of the points I brought up in that video which I still think is relevant to today and I think that's true of other crypto currencies that are trying to be payment options as well in other words what I'm trying to say is that while a lower long-term dominance for Bitcoin is certainly possible I suspect that it's likely far enough away that it's not going to be relevant to any trading decisions we make now furthermore if we're looking over the real long term while it doesn't seem likely that a Bitcoin ETF is gonna happen this year it's likely to happen at some point over the next five years which should result in a surge of capital and liquidity for Bitcoin now note that the problems that the SEC has discussed when it comes to Bitcoin ETFs are even worse when it comes to other crypto currencies meaning that it's not too likely that we see any ETFs for any crypto currencies aside for Bitcoin for a very long time in summary I still see Bitcoin as a superior investment over all coins even despite dominance rising to 39% recently given Bitcoin has traded in a range between 32 and 39% basically the 30 percent range I would probably recommend waiting until a clear break over 40% dominance for those of you that still haven't allocated to Bitcoin in preparation for a cycle shift in other words I would probably aim to be part of group number two at this stage since the ship has sort of sailed on being part of group number one and the best advice I can give is try never to be part of group number three aka the buy high sell low group as usual I hope you all enjoyed the video make sure that you check out my steamin if you would like to interact with me because I tend to be a little bit more active on there although recently I know I haven't been responding to comments as much because I've been super busy I'm gonna try and remedy that but just wanted to say I know I haven't been the best on that front anyway as usual please leave a like comment and subscribe and I will get back to you as soon as possible thank you for watching

43 thoughts on “Why Bitcoin is a SUPERIOR Investment Over Altcoins Now”

  1. What are your thoughts on Bitcoin vs. altcoins? Note that this video is only talking about RELATIVE performance. Where do you have your money placed? I'd love to hear. As usual, feel free to check out my Steemit: steemit.com/bitcoin/@cryptovestor/why-bitcoin-is-a-superior-investment-over-altcoins-now. I also try and post live updates on Twitter: twitter.com/Truth_Investor.

  2. There are a lot of altcoins with the potential to get a better ROI than Bitcoin. If Bitcoin won't make a 1000% ROI, Bitcore BTX will do it for BTC with no problem https://coinmarketcap.com/currencies/bitcore/

  3. Telegram integration offers you extremely profitable investment in the crypt currency! https://bit.ly/2Habs7

  4. Now that's interesting, and NOT surprising. Switzerland, one of the most developed, richest nations on Earth, with the HIGHEST STANDARD of living, embraces crypto's.

    While more backward countries denounce them. It seems crypto's ARE the future after all. They've just been recognized by the World masters of banking. I would recommend for EVERYONE to get on board , even micro bits will serve you well . It's time for the MIGHTY BITCOIN to reign supreme .

  5. Sure 1 for 1 BTC outperforms, but that's irrelevant. You have to factor in amount of coins purchased, so the performance should be done dollar for dollar. My altcoins have significantly outperformed BTC based on research, low values and massive gains

  6. To surmise crypto are fast becoming a highly traded commodity and cryptocurrency trading is very volatile. Gone are the days in which a person could buy Bitcoin for under $20 per coin but there is still money to be made. Learning to day trade Crypto can still turn a tidy profit if one follows trends and becomes well versed in the specifics of each coin. So, go out, be patient and diligent, and make money! I've been trading cryptocurrencies for 2 years now and I can say that over $200 billion dollars was made worldwide and has made millions of traders rich. I trade LTC, BTC, ETH, BCH, BCC etc. I can guide and assist you with any information you may need to invest in these new and unpopular crypto and digital currencies that are making waves at the moment. Contact me at (cryptobiz13ATgmailDOTcom)

  7. Your pragmatism, as well as how eloquently you express yourself, has me coming back to your channel over and over. Even though I may not agree with a lot of your stances, certainly having them in perspective, helps me be more balanced in my approaches. Rock on, brotha!

  8. Who wants to pay $10k for a Bitcoin when they can pay $200 for a Litecoin that does exactly the same but cheaper and faster? Even with the 4x max supply, it makes zero sense to buy Bitcoin at this time.

  9. hi there I like your thoughts and videos, the language you are using. however its sometimes confusing can you please make it a little clear for ESOL people thank you.!

  10. Videos are much more beautiful now. Would love to have daily content from you. (know you don't have the time, but would be awesome!) keep it up!

  11. Lots of assumptions…no ETFs for anything other than BTC in 5 years? My guess is that there will never be a btc etf. It will be ETH and BTC and maybe LTC at minimum

  12. Last time I checked the fees for transferring BTC is half a dollar. That is kinda acceptable. Dont know what it means for miners but makes it a lot better to use.

  13. I don't know any bitcoin investors in real life but if youtube is a representative sample 4/5 know NOTHING about investing and they only have money from bitcoin by pure chance of buying in pre november(January really) of 2017. Anyone could have made money by holding in 2017 and even trading because if you made a bad trade you could just wait and the price would go up; they were mistaking skill with luck. One guy was selling a class on investing bitcoin and didn't even know what the bid/ask or market depth chart. Like saying you are a race car driver but not knowing what a gas pedal is. True the bid/ask is less relevant on longer trade but having no idea as to what a component of every chart does? Also as a merchant accepting bit coins would be a huge PITA. You would have to convert to currency everyday because of fear or price drops and not making a profit off what you sold. Also last time I went to transfer BTC the fee was $30.00 for an hour or 4.00 for a long transfer. That prohibitively expensive and has no value over paypal let alone visa/MC. I almost think that could mean the death of bitcoin; wy else would you pay a 30 fee? Thats like western union.

  14. Bitcoin rose to 20,000 dollars only a few months after a Bitcoin documentary was posted on Netflix. I am convinced that this Bitcoin, and to a lesser extent, alt coin bull run was caused by nothing more than that Netflix documentary on Bitcoin. Tens of millions of people have Netflix, and it was one of the most watched Netflix pieces for several months toward the end of last year.

  15. Nope, not really. It really depends on how you managed your choice of altcoin. I make less money out of bitcoin over the past two weeks than altcoin, in fact few days ago, I was on a rush to sell most of my altcoins to lock onto my profits because they were rising too fast and I fear they will drop. BTW I just made a small investment on a few altcoins today and it already beat my bitcoin profit for past two days in terms of percentage.

    If you are still skeptical, go check out the price movement of nano and covesting for the past two days. In the coming few days, I can guarantee you that some altcoins are going to fly faster than bitcoin and some like litecoin and vechain are already on my radar.

  16. Next time you are at the checkout counter making a purchase ask… Can I pay with Bitcoin? I have started doing that here in Panama and some smaller merchants have replied. Not yet but we are interested. If everyone starts doing it you will get them thinking.

  17. Im almost 80% into altcoins right now, should I wait for the cycle to change or should i take the btc boat and rise with it?

  18. Can you specify which are Group 1 and Group 2 – I think I lost you at the end of the video?

    And so were you recommending, if you have not YET moved to BTC, to not do so, until we see a clear break from 40% dominance expecting momentum to continue? 

    Thanks!

  19. Yes BTC is now fast & cheap to send. but it's still easier for a low cap coin to triple than it is for bitcoin

  20. Thanks for the video .. Just little correction for people in 7:03 ripple is not cryptocurrency and it is scam that is need to be known

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