Early crypto investor and founder of Autonomous Partners, Arianna Simpson, says rumors of the demise of altcoins are greatly exaggerated.
In a new tweetstorm, Simpson makes the case for a thriving crypto ecosystem that includes many crypto assets aside from just BTC.
“The general crypto narrative seems to be drifting back to bitcoin maximalism, so I wanted to share a few thoughts on bitcoin relative to the rest of the crypto market. BTC has clearly outperformed most other cryptoassets by a wide margin YTD. Expecting that this will always be the case (or that holding only BTC is the right move) strikes me as foolish.
Why? First off, there is a strong recency bias in the crypto community (and in the investing world at large, tbh). Just because something has been the case lately does not mean that will persist in perpetuity.”
Simpson points to Ethereum’s strong performance in the last bull run as evidence that Bitcoin’s increasing dominance in 2019 is likely to swing the other way.
“Those who have been in this space for many years should recall that this is by no means the first time the pendulum has swung back and forth – in 2017 bitcoin was old news and it was all the shiny new layer1s that were going to take over the world.
In reality, ETH was a better performing investment for many (even when considering the major correction of 2018!) than BTC was. So BTC remains king, but discounting everything else is silly. Anyone who knows me (or has followed me on twitter for more than 5 minutes) is aware of how bullish I am on BTC. If I could only hold a single asset, BTC would be it.
But given the numerous high caliber of teams who are building crypto networks, I think it is incredibly unlikely that over a period of several years the entire rest of the market amounts to nothing. Not to mention, other chains will serve different functions!”
According to Simpson, there is more than enough room for a multitude of crypto and blockchain projects to thrive, even if BTC emerges as the digital alternative to gold.
“I actually don’t believe many other cryptoassets are even directly competitive with BTC – if it captures the ‘digital gold’ category, there is no reason other cryptonetworks cannot own other categories (compute, storage, etc etc).
So in summary, I believe claims that ‘alts are dead’ and bitcoin alone will make it are nonsensical. I am most definitely long BTC. But call me after you’ve tried deploying an app on bitcoin versus ethereum – alternative chains might not seem so useless after all!”
Seemingly right on cue, the crypto market is a sea of green, with many altcoins outperforming BTC.
Bitcoin is up 0.26% at $10,163, according to COIN360. Ethereum is up 3.26% at $191.98, XRP is up 2.48% at $0.2724 and Litecoin is up 0.07% at $73.74.
CoinDesk analyst Omkar Godbole BTC is still targeting a short-term drop to $9,467 but notes the long-term moving average remains bullish.
“[Bitcoin] ran into bids below the 100-day MA on Aug. 15 and closed (UTC) that day with gains above $10,300. The average was again defended on the following day and the subsequent price bounce ended up hitting highs above $10,950 on Aug. 20.
So, if the 100-day MA continues to hold ground over the next few hours, chart-driven buying could lead to a price bounce.”
Here’s a look at the latest forecasts from across the cryptoverse.
CoinDesk – Bitcoin selloff stalls at historical price support near $10K
Crypto Globe – Long-term uptrend intact, although a breakdown here will force reinspection
Crypto Daily – Technical support expected around $191, with resistance at $206
NewsBTC – XRP following bearish path after testing $0.2700 support against the US dollar
FXStreet – LTC/USD bearish flag structure subject to a breakout
Bitcoin Cash, Binance Coin, EOS, Bitcoin SV, Tron, Monero, Chainlink
NewsBTC – Crypto market vulnerable: BCH, BNB, EOS, TRX analysis
The Merkle – Market hits oversold zone: BSV, TRX, XMR, LINK analysis[the_ad id="42537"] [the_ad id="42536"]