In Search Of The Next Digital Asset That Will Reshape The Economic World
Established Digital Gold
Bitcoin is now an institutionally recognized digital asset and there are multiple ways investors can access this new and superior digital gold. I wrote an article about three or four years ago unraveling why Bitcoin is superior to gold. This is still true. However, as a store of value over the longer term, it makes sense to refer to it as digital gold. Existing market participants understand this terminology.
There is however another concern regarding Bitcoin and even Ethereum. The significant market caps of these assets and institutional exposure make them unattractive to investors like myself. Even if BTC surpasses $200K in this current cycle, it’s a modest 240%, which for OGs is no longer attractive. Many refer to altcoins and say that they have lost significantly to Bitcoin.
This is true. However, true to a point. I have often written about the slow leak on altcoins over the years. Even though BTC may regain the range of a previous local top, altcoins will lag. In other words, they give up more of their gains during a correction than they replenish during a Bitcoin rally. And so, Bitcoin can gain previous levels relatively easily. However, altcoins will require more time and volume to push higher.
That is the side of the argument that is true. However, buying Solana when it was below $10 is still a better investment decision than purchasing BTC at the same point in the market. When Solana was trading at $10 BTC was trading at $47K. Bitcoin is up 27% from those levels while SOL is up 1300% even with the collapse of the altcoin market. The returns are worlds apart.
Integral Projects Of The Future
Solana is not an isolated case. I can produce figures within the altcoin and micro-cap market that dwarf Solana. Bitcoin and Ethereum are now “wealth assets”. What do I mean by this? They are classic blue chip assets with institutional exposure. This is always accompanied by a “taming” of the price action. I don’t dispute that both Bitcoin and Ethereum will go on to reach significant all-time highs.
What I am saying is that Crypto OGs will now be looking elsewhere. They may preserve and modestly increase their long-term capital via Bitcoin or Ethereum. However, the answer lies elsewhere regarding future gains and assets that will become instrumental in the financial and digital world. Bitcoin will continue to grow and experience further adoption. However, as this increases, the gains diminish.
This will accelerate, especially with the recent launch of multiple Bitcoin ETFs and other financial products. Seasoned investors will identify future trends and begin looking for projects that will be instrumental in future trends. Assets that will rise into the Top 20 and even Top 10. This is where BTC and ETH will play a role.
Rebalancing a percentage of profits into blue chips will always be a good strategy. However, the projects I have in mind are projects that will become the “Bitcoin” or “Ethereum” of their particular niche or use case. There are likely to be several projects that will rise significantly within this decade. However, there will always be one which outruns all others and rises to prominence.
Final Thoughts
This is where serious altcoin investors need to be looking. Identifying future greatness within the Crypto space can be challenging. This space moves incredibly fast with new projects being birthed, even as others die. This is not only the search for the next great gainer, but the search for foundational and monumental projects that will dominate the future. All the best. See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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STOPThe ROI that Solana has given is nothing out of the ordinary considering that it dropped 96% when it hit the low of $8.3 compared to BTC’s 78% loss when it hit the low of $15,000. And Solana hasn’t even hit its ATH of $259 yet, so it still has a long way to go.
The ROI of an investment is relative to the entry price alone and has zero correlation to any external data, including all-time high levels. Smart money moves in and out of markets at the appropriate time.
I still think that both Bitcoin and Ethereum market dominance will continue to decline relative to newer and more innovative cryptocurrencies that have learned from the mistakes of these prior projects. In terms of both fiat gains and long-term success, mid/micro-caps have the most potential.
Yes, this is the idea... in percentage terms it will be higher... maybe not in dollar valuations. However, a shrewd investor is only concerned with percentage points.