The Bitcoin course has remained very stable in the last few days. Unfortunately, that cannot be said of the altcoins. The Altcoin bloodbath has been going on for days and is reaching new lows every day
The hype about Decentralized Finance (DeFi) is currently on the bench and waiting for his substitution. Currently only the big ones are allowed to play. In this article we take a look at why Crypto Profit is doing so well right now and why Altcoins continue to lose value.
Bitcoin vs. Altcoins
Bitcoin is not only the first and most decentralized cryptocurrency, but also the most secure and widely used. BTC has dominated the crypto market for years and is setting the pace.
Bitcoin was not only created on the basis of decades of research, but above all on the foundation of freedom and privacy. The idea behind BTC was never to get rich with it. Here completely different ideals based on the cyberpunk movement were pursued .
With altcoins, on the other hand, it looks very different. The first altcoins were created when Bitcoin was first traded for real money. From then on, everyone knew that a cryptocurrency, i.e. a purely digital asset, could be traded for real money. With Bitcoin it took almost 2 years to get there.
The result was a flood of various altcoins, which often sold as the better version of Bitcoin. They were sometimes faster, easier to use and scalable a little better. For some, that was proof enough that BTC will soon lose its leadership role.
The lack of understanding
This fallacy cost most people dearly. Most of these projects ran towards zero. This is exactly what projects are ahead of us that we currently find among the top 100 on CoinMarketCap.
The lack of understanding of money and the innovation behind Bitcoin repeatedly leads beginners in particular on the wrong track. They let themselves be lured by the promises of the various altcoins and sometimes believe that it will be the next bitcoin.
Very few understand that there will be no next Bitcoin. However, some believe that you can get similar returns on some altcoins. But it’s like looking for a needle in a haystack. There are certainly one or the other project that will produce an enormous performance, but such a hit is more like winning the lottery.
No natural demand for altcoins
There is no natural demand for altcoins. An exception is currently at most Ethereum. ETH is used on the Ethereum blockchain to pay for transactions and smart contracts. Due to the DeFi hype, there is a certain demand for ETH.
The rest is just short-term speculation. Almost all investors here are only interested in money. The meaning behind the cryptocurrency and whether you ever use it yourself for the actual purpose is irrelevant. Everyone is chasing the return on Bitcoin and at the same time believes that it is already too late for BTC.
Bitcoin is not about transactions in seconds or low transaction fees. These are the typical arguments of Altcoin projects to advertise themselves and convince newbies.
Unfortunately, hardly anyone is talking about Bitcoin’s decentralized payment network, which is also based on a healthy fee market. The focus is put on the wrong characteristics in order to better position yourself.