This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Bitcoin Maximalism - Does It Make Sense?Maximalism in crypto is not entirely a Bitcoin story.A maximalist is someone who believes their crypto is superior and is unwilling to compromise on their beliefs regardless of the evidence presented. Maximalism typically entails a belief of superiority in one particular token, and inferiority in everything that isn't their particular token. I won’t make the argument that maximalism is entirely bad, as maximalists are often the most vocal advocates for Bitcoin - crypto still needs all the publicity it can get. Maximalists are also the most passionate and devoted members of a community. Typically they are experts about their particular coin. Maximalism that isn't toxic can also be a net positive for the crypto space, but we all know that this seems to be the exception, not the rule. For my readers, I wanted to expand my thoughts on Bitcoin maximalism and discuss some of the common arguments for it.Bitcoin has massive upside with the lowest risk. I believe the above statement in defense of maximalism to be accurate, but I can also make a similar statement that I believe to be equally accurate: Ethereum has a LARGER upside with the SECOND LOWEST risk. I can make an infinite amount of these statements going down the list of every coin I have ever invested in, just replacing a couple of words to make each phrase equally accurate. I would expect the Bitcoin maximalist to respond by asking why I would incur extra risk in an investment for just a little bit more of a potential return. This leads to the next point. Most Altcoins will fail, why take the chance? Again, this is also a likely accurate. A Bitcoin maximalist that vocalizes this belief will protect a large portion of investors that are susceptible to purchasing high-risk crypto, but prevent others the opportunity to build life-changing wealth on coins that are still relatively safe. The idea that Bitcoin is the only safe investment in the crypto space is a tough position to defend - it discredits the unique use cases and sectors emerging in the space that offer something entirely different than Bitcoin. But to this point, a maximalist would probably point out that holding a diverse set of crypto can lead to more harm than good. When Bitcoin drops, altcoins drop more.An investor that diversifies in the crypto space with Bitcoin and a basket of alts probably has seen that when Bitcoin drops, altcoins almost always drop more. That said, in a bull market, they have had the pleasure of watching Bitcoin rise and their altcoins often outperforming Bitcoin. An experienced trader that looks outside of the USD pair can trade against the BTC pair and profit against the strength or weakness of Bitcoin at any given time. On the spectrum of safety, buying Bitcoin and committing to sit on it for a few years is the safest option. The opposite end of that spectrum is buying and trading altcoins - this is where the most money can be made and the most money can be lost.Bitcoin is the base layer, it is all that mattersIf you can convince a maximalist that there is additional profit to be made outside of Bitcoin with reasonable risk, they may resort to arguing the fundamentals of Bitcoin vs. other coins. Analogies are popular, such as “Bitcoin is like investing in the internet” - meaning altcoins are like the companies or websites reliant on this new technology. Blockchain’s first iteration was Bitcoin, but Bitcoin is an application of blockchain. It seems more accurate to say that blockchain is akin to the internet, as it's a network that requires a vehicle to be invested in. If anything, the Ethereum network is more similar to investing in the internet than Bitcoin is, because Ethereum is responsible for a much wider amd robust network birthing companies, coins, and projects far beyond Bitcoin. Bitcoin is the ultimate store of value.This is also accurate, but this belief isn't mutually exclusive. You can believe the above statement and also believe Ethereum is the world’s most programmable blockchain. If a maximalist believes Bitcoin is a superior store of value, do they deny other successful alternative store of values such as art, real estate, metals, and cars? It’s this line of thinking that makes it logically difficult to defend the idea that only Bitcoin is a worthwhile investment.Bitcoin is undoubtedly a once-in-a-lifetime innovation that will disrupt traditional finance, but staunch maximalism inhibits innovation and the competition needed to make meaningful change in the outdated world of finance. Bitcoin will not succeed as a “one-coin-army." No coin will. Stepping outside of Bitcoin is undeniably financially riskier, but so too is revolution and change.Today's livestream will be at 1 PM instead of 2PM! Come hang out before the weekend gets going.https://www.youtube.com/watch?v=7h46Ciqt2zgIn This Issue:Bitcoin Maximalism - Does It Make Sense?Bitcoin Maximalism - Does It Make Sense?Bitcoin Thoughts And AnalysisAltcoin ChartsCompetitive AdvantagesTrading GapsGBTC Discount At All-Time-LowRecord Bitcoin Options Expiring TodayNews Review In FullKickPad - Fair IDOs on Binance Smart ChainMy Recommended Platforms And Tools
The Wolf Den #207 - Maximalism
The Wolf Den #207 - Maximalism
The Wolf Den #207 - Maximalism
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Bitcoin Maximalism - Does It Make Sense?Maximalism in crypto is not entirely a Bitcoin story.A maximalist is someone who believes their crypto is superior and is unwilling to compromise on their beliefs regardless of the evidence presented. Maximalism typically entails a belief of superiority in one particular token, and inferiority in everything that isn't their particular token. I won’t make the argument that maximalism is entirely bad, as maximalists are often the most vocal advocates for Bitcoin - crypto still needs all the publicity it can get. Maximalists are also the most passionate and devoted members of a community. Typically they are experts about their particular coin. Maximalism that isn't toxic can also be a net positive for the crypto space, but we all know that this seems to be the exception, not the rule. For my readers, I wanted to expand my thoughts on Bitcoin maximalism and discuss some of the common arguments for it.Bitcoin has massive upside with the lowest risk. I believe the above statement in defense of maximalism to be accurate, but I can also make a similar statement that I believe to be equally accurate: Ethereum has a LARGER upside with the SECOND LOWEST risk. I can make an infinite amount of these statements going down the list of every coin I have ever invested in, just replacing a couple of words to make each phrase equally accurate. I would expect the Bitcoin maximalist to respond by asking why I would incur extra risk in an investment for just a little bit more of a potential return. This leads to the next point. Most Altcoins will fail, why take the chance? Again, this is also a likely accurate. A Bitcoin maximalist that vocalizes this belief will protect a large portion of investors that are susceptible to purchasing high-risk crypto, but prevent others the opportunity to build life-changing wealth on coins that are still relatively safe. The idea that Bitcoin is the only safe investment in the crypto space is a tough position to defend - it discredits the unique use cases and sectors emerging in the space that offer something entirely different than Bitcoin. But to this point, a maximalist would probably point out that holding a diverse set of crypto can lead to more harm than good. When Bitcoin drops, altcoins drop more.An investor that diversifies in the crypto space with Bitcoin and a basket of alts probably has seen that when Bitcoin drops, altcoins almost always drop more. That said, in a bull market, they have had the pleasure of watching Bitcoin rise and their altcoins often outperforming Bitcoin. An experienced trader that looks outside of the USD pair can trade against the BTC pair and profit against the strength or weakness of Bitcoin at any given time. On the spectrum of safety, buying Bitcoin and committing to sit on it for a few years is the safest option. The opposite end of that spectrum is buying and trading altcoins - this is where the most money can be made and the most money can be lost.Bitcoin is the base layer, it is all that mattersIf you can convince a maximalist that there is additional profit to be made outside of Bitcoin with reasonable risk, they may resort to arguing the fundamentals of Bitcoin vs. other coins. Analogies are popular, such as “Bitcoin is like investing in the internet” - meaning altcoins are like the companies or websites reliant on this new technology. Blockchain’s first iteration was Bitcoin, but Bitcoin is an application of blockchain. It seems more accurate to say that blockchain is akin to the internet, as it's a network that requires a vehicle to be invested in. If anything, the Ethereum network is more similar to investing in the internet than Bitcoin is, because Ethereum is responsible for a much wider amd robust network birthing companies, coins, and projects far beyond Bitcoin. Bitcoin is the ultimate store of value.This is also accurate, but this belief isn't mutually exclusive. You can believe the above statement and also believe Ethereum is the world’s most programmable blockchain. If a maximalist believes Bitcoin is a superior store of value, do they deny other successful alternative store of values such as art, real estate, metals, and cars? It’s this line of thinking that makes it logically difficult to defend the idea that only Bitcoin is a worthwhile investment.Bitcoin is undoubtedly a once-in-a-lifetime innovation that will disrupt traditional finance, but staunch maximalism inhibits innovation and the competition needed to make meaningful change in the outdated world of finance. Bitcoin will not succeed as a “one-coin-army." No coin will. Stepping outside of Bitcoin is undeniably financially riskier, but so too is revolution and change.Today's livestream will be at 1 PM instead of 2PM! Come hang out before the weekend gets going.https://www.youtube.com/watch?v=7h46Ciqt2zgIn This Issue:Bitcoin Maximalism - Does It Make Sense?Bitcoin Maximalism - Does It Make Sense?Bitcoin Thoughts And AnalysisAltcoin ChartsCompetitive AdvantagesTrading GapsGBTC Discount At All-Time-LowRecord Bitcoin Options Expiring TodayNews Review In FullKickPad - Fair IDOs on Binance Smart ChainMy Recommended Platforms And Tools