I am going to share an unpopular but a fair valuation of the current crypto market.
The first thing you need to learn to become a successful crypto investor is that it is completely irrelevant if the tech behind it is worth anything. It’s all based hype, shilling, FOMO and the vast majority of the buyers are tech illiterate anyway.
it is completely irrelevant if the tech behind it is worth anything. It’s all based hype, shilling, FOMO and the vast majority of the buyers are tech illiterate anyway.
Further even the coins who’ll survive the bubble are extremely overvalued right now and when it crashes it doesn’t matter if your coin eventually recovers if you could just buy back your investment for a few cents anyway.
Think about it for a moment… Despite all the whitepapers you’ve read, do you really, honestly can say to comprehend even quarter of the Blockchain technology’s principles, can you?
Maybe you can but you forget that large majority of people are barely even able to explain how the internet works.
Case study A: Verge
Verge. A coin that skyrocketed off McAfee’s Twitter tweet. Valued at 2.4 billion market cap.
That was the most marketed altcoin of the time. But what does Verge actually do? It’s a ‘privacy coin’ or claims to be but several discoveries on the internet have been found that the coin is not, tech-wise, even considered a privacy coin. Nobody took time to look into the product, which didn’t exist then, but bought into the dream. Oh, and the Wraith release? That was buggy and non-functional as well.
Case study B: Cardano
A top 5 coin. Valued at more than 26 billions according to it’s current market cap. Can anybody tell me what this coin does? Anybody? Quite literally the only reason why anybody has invested into this is because somebody heard from somebody else that the team is great. Let’s look at their homepage and see how they describe themselves:
Cardano is a decentralised public blockchain and cryptocurrency project and is fully open source. Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed.
Calling it vague is an understatement. Seems the devs don’t know themselves what they are doing. A decentralized public blockchain that is fully open source? Isn’t that quite literally every second coin on the market right now? Also if you go to their roadmap you can quickly conclude they do not have a product. People have invested millions into just ideas and dreams.
These coins do no solve any problems, they do not innovate anything. Just vaporware.
But apparently, rationalé does not hold a position in the current positiong of cryptocurrencies.
Main takeaway: The secret model of current trading is NOT great tech, it’s great marketing.