You’ll have to dig quite deep in various financial markets to witness a group of project/companies consistently fluctuating in price/value and in many, reach as low as 90-95% of its initial value.
Since Bitcoin’s inception, many other Altcoins have joined the Cryptocurrency space, all attempting to make a breakthrough in enhancing various traditional sectors.
Albeit, taking into consideration that some projects could be considered as “utter garbage” – A nice way of my phrasing.
But how much trust do you have in Altcoins?
Do more and more investors believe there is a future for many other Cryptocurrencies?
@CryptoDonAlt recently tweeted about the general trust amongst investors of Altcoins;
One thing that never ceases to amaze me is how strong the general trust in altcoins is.
I doubt there is any other market that can go down 95% and still maintain as many believers.
We’re all either the biggest geniuses or the biggest idiots out there.
I honestly can’t tell.
— DonAlt (@CryptoDonAlt) May 18, 2019
The tweet was met with some interesting replies with some users replying;
Non-crypto people say the same about BTC. To an outsider, the difference between an 82% and 95% collapse isn’t huge.
— Ari Paul ⛓️ (@AriDavidPaul) May 18, 2019
“Alts are what make crypto exciting & bring in more investors. Such a small number of major holders own most of the BTC or Eth. Vert centralized in that they control the price. Needs to be other alts that take some market cap so the field evens”
Now Bitcoin, as things stand, is certainly number 1 in the Cryptocurrency space even after numerous attempts to dethrone its position;
- It is the most familiar and well known Crypto amongst newbies
- Bitcoin is pegged to every Cryptocurrency highlighting its dominance
- Bitcoin generally tends to be ‘slightly’ less volatile than Altcoins
Bitcoin VS Altcoin Volatility
The volatility in Cryptocurrency is certainly one that may not only deter away a lot of traditional investors but also entice a lot of young/ new investors.
Bitcoin during a bear market can often see a correction between 80-85% whilst Altcoins can see anything between an 85-95% correction (or even higher).
However, what may attract more investors towards Altcoins will inevitably be the lure of substantially higher gains during a bull market.
Take a look at some of the percentage growths during the previous bull run;
- Bitcoin rallied from $960 to $20,000 – An increase of around 1000%
- Litecoin rallied from $3.63 to $302 – An increase of around 8000%
- XRP rallied $0.0064 to $3.90 – An increase of over 35,000%
An interesting reminder to note that whilst some of these Altcoins may go on to change how various sectors operate, the opportunity for making incredible ROI on well research projects can prove well worth it.