6/28 ANDY HOFFMAN (CryptoGoldCentral.com): The Altcoin Death Spiral Has Begun
My last article was four weeks ago – likely, the longest interval between publications since I started writing for a living 22 years ago. As I said in that piece, I no longer intend to write unless I have something significantly incremental to say – as at this point in Bitcoin’s history, there is so much quality content on the internet, it’s no longer necessary. So, I’m instead communicating principally with Twitter, with the occasional podcast appearance…like Friday, when I was on Adam Meister’s “This Week in Bitcoin.”
Last night, I read a Tweet stating that the BCash scam is now trading at an all-time low against Bitcoin – which shouldn’t surprise anyone, as not a single transaction, other than buying and selling for speculative purposes, has likely EVER occurred on it.
Frankly, it amazes me BCash still exists, as I don’t believe anyone still remains - aside from Roger Ver and Jihan Wu, who are trying to protect the collapsing value of their massive holdings - that actually believes it has a future.
My view has always been that 95% of all altcoins will become worthless – but it took four years of watching crypto evolve, and in several cases participating in altcoins, to fully understand their nature. Consequently, I this Spring returned to a 100% BTC position for the first time in 18 months – likely, for good.
The reason being, I now believe at least 99% of altcoins will go to zero, as essentially nothing they produce is likely to add significant value to the space – and if they do, it will likely be subsumed by Bitcoin.
To that end, the reason I’m writing this article, is that upon reading about BCH’s (expanding) collapse against Bitcoin, I decided to check out some of the other “top tier” coins, too. And lo and behold, with very few exceptions, nearly all top tier altcoins are, as we speak, hitting new all-time lows against Bitcoin - including, for instance, XRP, LTC, BCH, EOS, BNB, and Monero. In other words, a nice cross section of coins that were believed to have the ability to outperform Bitcoin – all of which, are failing miserably.
As Bitcoin moves into the “phase five” of its evolution (according to Plan B), increasingly sophisticated investors will be entering the space – who will NOT be fooled by altcoin carnival barkers, and NOT invest in low volume, weak liquidity coins…particularly in light of the fact they essentially ALL (of the handful of POW coins) have hash rates so low, they could be 51% attacked into oblivion at any time. To that end, don’t be surprised if someone, sometime soon, destroys a “major” coin with a 51% attack.
Sure, there will always be altcoin “flavors of the month,” as Adam calls them – such as the current silliness about “DeFi” coins. However, the twilight of the great altcoin experiment has arrived – with many coins already in death spirals versus Bitcoin, and the vast majority of the remainder on the cusp of entering that realm shortly.
Never have altcoins been more exposed, so get as much Bitcoin as you can for them, as soon as possible!