Maximalists are in full throttle as they spread Fear, Uncertainty, and Doubt into the altcoin market.
Crypto Bubbles: Why Traders Believe Altcoins Are Overpriced
For the most part, the altcoin market bottomed and is still at the bottom. Bitcoin has gone x3 in three months, while not many other projects have followed. Many big players in the space are weaponizing that fact and using it to attack the market.
More specifically, veteran trader and author Peter Brandt recently compared the altcoin market to the dot-com bubble, claiming that Bitcoin's recent strong rallies won't be replicated by other cryptocurrencies.
As I've explained several times, comparing Dot Com to crypto is a huge mistake.
"While most altcoins are probably significantly overvalued, some, like Chainlink, may emerge as very valuable entities. So it makes more sense to look at these on a case by case basis then make generalizations."
This statement is particularly infuriating. Chainlink went x7 over the last two months, so this person is just picking out a 'random' crypto that did well recently and assumes it has strong fundamentals based on the investment decisions of a few big whales over the last month?
Can't we see what's happening here? This is all after-the-fact FUD spreading designed to separate us from our money. There is now massive interest in Bitcoin from corporations and institutions. However, many of those corporations and institutions won't take any bigger risks than Bitcoin for quite some time.
Market sentiment mirrors this perfectly. Bitcoin gets pumped and most altcoins stay stagnant, and then we see rampant misinformation that plays in to the scarcity mindset that we've all been enslaved by. The same old tired fear mongering just cycles over and over and somehow retains perfect effectiveness.
“As we saw with Netscape, AOL and AltaVista in the early Internet era, it isn't necessarily the first-movers in a new industry that end up the biggest successes. Perhaps even Bitcoin itself will be usurped by something faster and even more ingenious. A household brand name like Bitcoin is a valuable thing but it does not make a brand bulletproof. Just ask Nokia. Or Blackberry. Or Kodak. Or Blockbuster. Or Toys ‘R’ Us.”
Gag. Again with the comparisons of crypto to corporations. Show me the expense breakdown of Blockbuster compared to say... Steem. We don't have employees. We don't have logistics. We don't have to pay rent or property tax. Comparatively, we have zero overhead compared to a corporation. All this needless FUD should be telling you one thing.
Either these FUDsters want to buy altcoins on the cheap (not likely) or a new wave of maximalists have just entered Bitcoin and want all money to flow into it now that they have secure footing in the market. Bitcoin has gone from $4k to $12k. Obviously a lot of value has changed hands in the last three months. It's obvious to me these new investors are looking to capitalize on the fear of others.
To make the claim that Bitcoin is going to corner the entire market with 10 minute blocks and no smart contracts is completely absurd. The same is true for even assuming Bitcoin is in competition with other open source projects to begin with. Open source projects literally can't compete, but we're in this situation where all the cutthroat venture capitalists are here projecting their past experiences onto this emergent economy.
They want you to believe that there aren't enough resources for everyone. They want you to join their little rigged rat race. Don't play that game. Pick projects you believe in and want to be a part of and put your time and money there, no matter what other people are saying.
Crypto is about targeting communities. Think about it: how communities are actually being targeted? Hardly any of them. Also, the people who have the best technical skills for building these technologies are often also the worst community builders. It's going to take a long long time to reach the tipping point that gets this ball rolling.
The establishment is having a very hard time controlling distributed ledger technology, but they are trying their damndest. They've tried buying it out but that just spikes the price because there are too many holders. They've tried futures markets. They've tried bottlenecking the on/off ramps to fiat via regulation of centralized exchanges. ETFs are next, and whatever other tricks they use to control the value of precious metals.
From there, Bitcoin will be used to control the altcoins. At least that's the plan. I don't think that's going to work long-term but it sure as hell is working now.
The summer bull run may be over. I've been predicting for 6 months now that it would spike to 12k and drop to 6k. Now it looks like the spike might actually be 13.8k down to 7.5k, and that's fine.
However, this whole situation has created a new round of extremely weak handed and scared investors. If Bitcoin really does fall back down to 7.5k it looks like almost the entire altcoin market will be massively oversold. I can't wait for that to happen if it does (I'm thinking September or October).
You only want the price of a project to rise if you intend on selling out to USD.
As someone who is still trying to buy more coins, I would love it if the market became massively oversold. Trust in community. Reject this fear mongering based on after-the-fact speculation.
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