This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. I really encourage you to check them out.Maximalism dominates the crypto space, and not only in Bitcoin. There are many who wear their maximalism for a project like a badge of honor.By definition, a maximalist is someone who holds extreme views and is unwilling to compromise. As it pertains to our space, it is someone who believes that their favorite cryptocurrency is superior, often in the face of evidence to the contrary. With this belief system comes a knee jerk hatred for all other projects - it’s a slippery slope to us vs. them.Maximalism is not entirely bad. Maximalists have been largely responsible for the success of crypto from the early days, refusing to capitulate to countless threats and always evangelizing for the asset class. Maximalists are also the most passionate and devoted members of a community, and are typically experts. Maximalism that isn't toxic can be a net positive for the crypto space, but 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 Large Upside With Low RiskThis is true and is the reason that I believe newcomers should always start at Bitcoin. That said, I believe the following statement to be equally accurate - Ethereum has LARGER upside with the SECOND LOWEST risk. As we go further down the market cap list, we can continue to make similar claims. Investing is a trade-off. I would expect a Bitcoin maximalist to respond by asking why I would incur additional risk for just a little bit more of a return. This leads to the next point.Most Altcoins Will FailI also agree with this statement. A maximalist that vocalizes this belief will protect a large portion of investors that are susceptible to purchasing high-risk cryptos... while simultaneously preventing others from the opportunity to build life-changing wealth on coins that are still relatively safe. The idea that Bitcoin is the only safe investment in crypto is an incredibly tough position to defend. It discredits the unique use cases and sectors emerging in the space that offer something entirely different than Bitcoin. Furthermore, if everything other than Bitcoin were to fail, that would probably be the end of 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 MoreAn 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. We are witnessing it today. But on the other hand, in a bull market, investors have the pleasure of watching Bitcoin rise and seeing altcoins outperforming Bitcoin. An experienced trader that looks beyond the USD pair can trade against the BTC pair and profit on the strength or weakness of Bitcoin at any given time. On the spectrum of safety, the most safe strategy is buying Bitcoin and committing to sit on it for a few years. The opposite end of that spectrum is buying and trading altcoins, which is where the most money can be made and lost.Bitcoin Is The Base Layer, It Matters The MostIf you can convince a maximalist that there is additional profit to be made beyond Bitcoin at a reasonable risk, they may resort to the fundamentals of Bitcoin vs. other coins. Analogies are popular, such as “Bitcoin is like investing in the internet,” implying that altcoins are like the companies reliant on this new technology. Blockchain's first iteration was in Bitcoin, but Bitcoin is really more of an application of blockchain - it’s not the base layer technology. It seems more accurate to say that blockchain is akin to the internet. If anything, the Ethereum network is a better corollary for the internet than Bitcoin, because Ethereum is responsible for a much wider and robust network, birthing endless companies, coins, and projects.Bitcoin Is The Ultimate Store Of ValueThis is also accurate. The issue is that the argument for crypto does not stop there. You can believe the above statement and also believe that Ethereum is the world’s most programmable blockchain. If a maximalist believes that Bitcoin is a superior store of value, do they deny other successful alternative stores of value 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 worth your time in crypto. Bitcoin is a once-in-a-lifetime innovation that will disrupt traditional finance - but it’s not an end-all-be-all.Maximalism inhibits the innovation and competition needed to make meaningful change in finance. Bitcoin will not succeed as a one-man-army. Stepping outside of Bitcoin is undeniably financially riskier and less certain, but the path to financial freedom was never going to be easy.In This Issue:Does Maximalism Make Sense?Bitcoin Thoughts And AnalysisAltcoinsCan The IRS See What You Are Doing?Crypto Is An Inefficient MarketMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #385 - Does Maximalism Make Sense?
The Wolf Den #385 - Does Maximalism Make…
The Wolf Den #385 - Does Maximalism Make Sense?
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. I really encourage you to check them out.Maximalism dominates the crypto space, and not only in Bitcoin. There are many who wear their maximalism for a project like a badge of honor.By definition, a maximalist is someone who holds extreme views and is unwilling to compromise. As it pertains to our space, it is someone who believes that their favorite cryptocurrency is superior, often in the face of evidence to the contrary. With this belief system comes a knee jerk hatred for all other projects - it’s a slippery slope to us vs. them.Maximalism is not entirely bad. Maximalists have been largely responsible for the success of crypto from the early days, refusing to capitulate to countless threats and always evangelizing for the asset class. Maximalists are also the most passionate and devoted members of a community, and are typically experts. Maximalism that isn't toxic can be a net positive for the crypto space, but 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 Large Upside With Low RiskThis is true and is the reason that I believe newcomers should always start at Bitcoin. That said, I believe the following statement to be equally accurate - Ethereum has LARGER upside with the SECOND LOWEST risk. As we go further down the market cap list, we can continue to make similar claims. Investing is a trade-off. I would expect a Bitcoin maximalist to respond by asking why I would incur additional risk for just a little bit more of a return. This leads to the next point.Most Altcoins Will FailI also agree with this statement. A maximalist that vocalizes this belief will protect a large portion of investors that are susceptible to purchasing high-risk cryptos... while simultaneously preventing others from the opportunity to build life-changing wealth on coins that are still relatively safe. The idea that Bitcoin is the only safe investment in crypto is an incredibly tough position to defend. It discredits the unique use cases and sectors emerging in the space that offer something entirely different than Bitcoin. Furthermore, if everything other than Bitcoin were to fail, that would probably be the end of 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 MoreAn 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. We are witnessing it today. But on the other hand, in a bull market, investors have the pleasure of watching Bitcoin rise and seeing altcoins outperforming Bitcoin. An experienced trader that looks beyond the USD pair can trade against the BTC pair and profit on the strength or weakness of Bitcoin at any given time. On the spectrum of safety, the most safe strategy is buying Bitcoin and committing to sit on it for a few years. The opposite end of that spectrum is buying and trading altcoins, which is where the most money can be made and lost.Bitcoin Is The Base Layer, It Matters The MostIf you can convince a maximalist that there is additional profit to be made beyond Bitcoin at a reasonable risk, they may resort to the fundamentals of Bitcoin vs. other coins. Analogies are popular, such as “Bitcoin is like investing in the internet,” implying that altcoins are like the companies reliant on this new technology. Blockchain's first iteration was in Bitcoin, but Bitcoin is really more of an application of blockchain - it’s not the base layer technology. It seems more accurate to say that blockchain is akin to the internet. If anything, the Ethereum network is a better corollary for the internet than Bitcoin, because Ethereum is responsible for a much wider and robust network, birthing endless companies, coins, and projects.Bitcoin Is The Ultimate Store Of ValueThis is also accurate. The issue is that the argument for crypto does not stop there. You can believe the above statement and also believe that Ethereum is the world’s most programmable blockchain. If a maximalist believes that Bitcoin is a superior store of value, do they deny other successful alternative stores of value 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 worth your time in crypto. Bitcoin is a once-in-a-lifetime innovation that will disrupt traditional finance - but it’s not an end-all-be-all.Maximalism inhibits the innovation and competition needed to make meaningful change in finance. Bitcoin will not succeed as a one-man-army. Stepping outside of Bitcoin is undeniably financially riskier and less certain, but the path to financial freedom was never going to be easy.In This Issue:Does Maximalism Make Sense?Bitcoin Thoughts And AnalysisAltcoinsCan The IRS See What You Are Doing?Crypto Is An Inefficient MarketMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO