Altcoins: The Journey To Boom Or Doom

The last explosion in the prices of altcoins occurred in 2017 and ended at the early stages of 2018. In a month, the prices of a good number of altcoins swelled while the dominance of Bitcoin dropped from 67 percent to 32 percent. Now, two years later, people are still hoping for another altcoin Christmas. Well, the next altcoin boom is no more likely to occur than the coming of the four horsemen themselves.

Have you ever heard of the “cookie now or two later” experiment? It is the best description of the current situation in the Bitcoin market. Nevertheless, we need to wonder if those cookies of the future would still be Bitcoins. Some alternative coin - also known as Altoin - with more vale has a chance to replace it and become the high and mighty of the cryptosphere.

As the price of Bitcoin continues to fall, there is proof of its elasticity. Even though a lot of people say President Donald Trump’s tweets have something to deal with the misnomer, a single comment cannot go so much to town on crypto as it did. The same is the case for the false ones that jump-start the bullish trend just the way it happened on this year’s April Fools’ Day.

Bitcoin Overpriced

There are two values to every tradable asset. On one side is the intrinsic value (or true value), and on the other is the speculative value. The latter arises when people consider that particular asset as an investment with hopes that the price will go up in the future. In Bitcoin’s case, no one knows the actual value. But in the best possible regard, the crypto asset price could be much less than what it is today.

The reason is, if you bet your money on the digital coin now, there is a very likely chance that its price could finally drop to its true value due to many factors. You could lose your hard-earned money, which is why they say invest only what you can afford to lose. The good news is, most altcoins have lower prices, maybe close to or much less than the intrinsic worth of the underlying technology.

Lower Price For Altcoins

A good number of altcoins are trading at prices very low when compared to the Bitcoin. A lot of the people who bet their money on Bitcoin may be naive and just want to join the Bitcoin investment bandwagon. Just because everyone is investing in this asset does not mean you should. What’s worse, many Bitcoin investors do not know jack squat about its underlying technology. There are many altcoins that are trading near to 1$, making it easy for just about anyone to buy-in.

If you invest in any of these alternate digital currencies and the future of the technology is successful, there is a very likely chance that the price could be up to $100, multiplying your initial investment by 100. Let’s say you were to put all your eggs in one BTC basket now when its price is already at $3000. It is unlikely that the market will not crawl in the next couple of years, but supposing it’s all Christmas, its price could reach $10,000 in two years. At the end of the day, your gain is around 2X.

Not Your Regular Coins

For what it’s worth, altcoins are not just coins. If you are a new arriver in the world of cryptocurrency, there is a chance you would conclude that altcoins are more or less brothers to Bitcoin, different only by using another type of technology. But you could not be more wrong. Factually speaking, most assets in the crypto market today are revolutionary ideas that have the potential to change the way we live in the future.

An altcoin is just another monetary token. An example is the GOLEM project, which is a distributed supercomputer project anyone can use. Anyone who has idle computer power can sell it for GOLEM currency. So if you are buying golem, you would be actually buying into their idea. Unlike Bitcoin, altcoins are easy to mine. When cryptocurrencies first came, mining was easy people can get some with their CPUs. But now things have gotten much harder, except for altcoins.

Earning Passively

Getting passive income from altcoin investments is like earning a dividend from a company as a shareholder. So, just by buying and keeping these cryptocurrencies in your digital wallet, you can earn money. For an example such as Ark Coin, this process is part of a new DPOS technology offered by some altcoins. But what if the altcoin does not see better days, you may wonder. Well, there is a possibility of this happening.

But what if it does not? There is no single fail-proof method to know whether one altcoin is going to make it in the market. But we can sure look for a couple of coins with high success potential and deposit a safe amount of money into it. Even if you invest in 10 altcoins and only one 1 succeeds, the gain will be enough to make up for the losses you bore in the other 9.

It is not common to say this in some sectors, but now could be a brilliant time to bet your money on altcoins. If you had purchased a stack of Binance Coin when they were first on the offer, case in point, by now, you would have not just gotten your capital back but also made hundreds of percent. For upcoming IEOs, this could be the same story, just the way it was during the boom of ICOs. Functionally, the only difference is the backing of the exchanged themselves. This implicates them just as much as it gives them credit.

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