Rich People’s Dream: Altcoins
There is nothing worse than chasing a dream that does not have chances to become a reality. Some people often try to focus on things that are quite unreliable. The recent bitcoin rush is a great evidence that supports this notion. Bitcoin looked like something ephemeral and people did not believe that a piece of code could be worth thousands of dollars.
Back in 2010 was a story about a British man who threw away a PC with a hard drive that contained 1 thousand bitcoins. At that time, the price of BTC was hovering above $1000. When it bombed a couple of months later, most financial analysts and investors decided to just forget about the idea of investing in Bitcoin altogether.
What with the Hype?
Did you hear about dogecoin? Garliccoin? Other altcoins? The movement of blockchain keeps getting momentum with more and more people jumping on the bandwagon without even understanding how it works. As usual, this hype created a couple of bubbles like Bitconnect and AirbitClub. Those are scams that were nothing more than simple MLMs.
Despite the sad ending of those projects, other blockchain projects keep attracting a lot of attention. Why is this happening?
The lightning fast rise of BTC about 6 months ago put it on front pages of all magazines and online media outlets creating hype.
BTC is actually a very reliable kind of non-fiat money that definitely has potential. It is secure and anonymous.
Most financial transactions are being moved to the internet with less and less enterprises relying on offline sales. This creates even more incentives for investors to put their faith in digital forms of money.
Current hype is undoubtedly inflated artificially by speculators, but it still attracts new inexperienced investors making the current bubble even scarier in the long run.
The hype around Bitcoin created a whole new domain – altcoins. Alternative blockchain projects with unique flavors and themes that hope to become the next BTC. Most of these projects have interesting features, but they do not have the same backing capital. Altcoins may have a bright future but the hype if definitely overinflated.
Should You Buy into the Hype?
Passive investors should stick to the course chosen before. Holders should “hodl”. Venture capitalists may try to invest. If you are new to the world of finances and looking for a good start, forget about coins. They are too volatile and too unpredictable.