The Wolf Den #427 - Bitcoin Is In A Class Of Its Own
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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. Newcomers to the crypto space are immediately confronted with the decision of which coin to buy first. Bitcoin has historically been the first stop on almost every new entrant's journey. It has the largest market capitalization, the greatest name recognition and is the heart beat of the crypto world. That said, many people are now coming to crypto through NFTs and meme coins. It is important for them to understand the difference between Bitcoin and everything else, and why they should hold some in their portfolio.I often make the argument that the term "cryptocurrencies" is a misnomer and should be eliminated - most are not currencies at all, but rather utility tokens for a specific network. When you eliminate this line of thinking, you are left with Bitcoin and everything else. This is where I think maximalists miss the mark.If Bitcoin is digital gold and altcoins are emerging tech, then you can see why you can love both without issue.You can invest in both gold and Amazon with no conflict. So why not Bitcoin and Ethereum? They are vastly different assets, sharing only the underlying technology.This is hard to grasp for people that are new to crypto.Below is a list of the initial thoughts about Bitcoin that typically run through a newcomer's head:“Why invest in the coin everyone already knows about.”“Why invest in the asset that’s slow, when new ones are faster.”“There is no way Bitcoin, the oldest coin, happens to be the most secure, decentralized, and sound money the space has to offer.”“Altcoin (insert random name) optimizes for ____ and is so much more appealing.”All of these questions boil down to the simple false idea that a new and shinier altcoin must be better than the king. After all, Myspace was once devoured by Facebook, Blockbuster was once devoured by Netflix, and Napster was once devoured by Spotify, right? Bitcoin is not a company and comparing it to the situations above is tragically misleading. This line of thinking misses the point of Bitcoin altogether.There is nobody better to explain the ideas above than one of the world's largest investment houses, Fidelity.They just put out an earth shattering Bitcoin report, (Bitcoin First: Why Investors Need To Consider Bitcoin Separately From other Digital Assets) that aligns incredibly well with my personal view that Bitcoin should be viewed through an entirely different lens than the rest of the market.Here are a few of my favorite quotes, confirming my ideas."There is not necessarily mutual exclusivity between the success of the Bitcoin network and all other digital asset networks. Rather, the rest of the digital asset ecosystem can fulfill different needs or solve other problems that bitcoin simply does not.""Other non-bitcoin projects should be evaluated from a different perspective than bitcoin.""Investors should hold two distinctly separate frameworks for considering investment in this digital asset ecosystem. The first framework examines the inclusion of bitcoin as an emerging monetary good, and the second considers the addition of other digital assets that exhibit venture capital-like properties."Simple but clear. There's Bitcoin and there's everything else.Adjust your thinking.I have said this all along and Fidelity agrees; Bitcoin’s first mover advantage is an incredibly serious one. This isn't a technological aspect or innovative concept, it is merely a fact. But it is one that REALLY MATTERS. Bitcoin is years ahead of any competitor.“Because Bitcoin is currently the most decentralized and secure monetary network (relative to all other digital assets), a newer blockchain network and digital asset that tries to improve upon bitcoin as a monetary good will necessarily have to differentiate itself by sacrificing one or both of these properties. A competitor that tries to merely copy Bitcoin’s entire code will also fail as there will be no reason to switch from the largest monetary network to one that is completely identical but a fraction of the size.”What's described above is the blockchain trilemma problem. When an altcoin attempts to solve for speed, scalability, or decentralization, they unintentionally end up sacrificing a necessary quality in a trade-off. Bitcoin is already secure, decentralized, and scalable enough. The wheel does not need to be reinvented! That does not mean that those altcoins lack value - it just means that they need to do something different than Bitcoin, where that tradeoff is worthwhile.I think this simple, but powerful idea sums everything up, “a competitor that tries to merely copy Bitcoin’s entire code will also fail as there will be no reason to switch from the largest monetary network to one that is completely identical but a fraction of the size.”This doesn’t mean that Bitcoin is the greatest investment of the digital asset revolution. It means that Bitcoin IS THE REVOLUTION. Copy cats will come and go, but they will never have the network and characteristics necessary to compete with Bitcoin.There's Bitcoin and there's everything else.Chart Request Live Stream at 1:30 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 12:30 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.REMINDER: I can only do so many charts on the livestream. My assistant picks 25 random requests from everyone’s submissions and those are the coins I chart.Chart Request FormIf you are a new member, please refer to THIS BLOG for instructions on how to make my charts your own.In This Issue:Bitcoin Is In A Class Of Its OwnHidden Bullish On-Chain Signals - IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsMichael Saylor Finally Bought The DipInnovation Is On SaleMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #427 - Bitcoin Is In A Class Of Its Own
The Wolf Den #427 - Bitcoin Is In A Class Of…
The Wolf Den #427 - Bitcoin Is In A Class Of Its Own
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. Newcomers to the crypto space are immediately confronted with the decision of which coin to buy first. Bitcoin has historically been the first stop on almost every new entrant's journey. It has the largest market capitalization, the greatest name recognition and is the heart beat of the crypto world. That said, many people are now coming to crypto through NFTs and meme coins. It is important for them to understand the difference between Bitcoin and everything else, and why they should hold some in their portfolio.I often make the argument that the term "cryptocurrencies" is a misnomer and should be eliminated - most are not currencies at all, but rather utility tokens for a specific network. When you eliminate this line of thinking, you are left with Bitcoin and everything else. This is where I think maximalists miss the mark.If Bitcoin is digital gold and altcoins are emerging tech, then you can see why you can love both without issue.You can invest in both gold and Amazon with no conflict. So why not Bitcoin and Ethereum? They are vastly different assets, sharing only the underlying technology.This is hard to grasp for people that are new to crypto.Below is a list of the initial thoughts about Bitcoin that typically run through a newcomer's head:“Why invest in the coin everyone already knows about.”“Why invest in the asset that’s slow, when new ones are faster.”“There is no way Bitcoin, the oldest coin, happens to be the most secure, decentralized, and sound money the space has to offer.”“Altcoin (insert random name) optimizes for ____ and is so much more appealing.”All of these questions boil down to the simple false idea that a new and shinier altcoin must be better than the king. After all, Myspace was once devoured by Facebook, Blockbuster was once devoured by Netflix, and Napster was once devoured by Spotify, right? Bitcoin is not a company and comparing it to the situations above is tragically misleading. This line of thinking misses the point of Bitcoin altogether.There is nobody better to explain the ideas above than one of the world's largest investment houses, Fidelity.They just put out an earth shattering Bitcoin report, (Bitcoin First: Why Investors Need To Consider Bitcoin Separately From other Digital Assets) that aligns incredibly well with my personal view that Bitcoin should be viewed through an entirely different lens than the rest of the market.Here are a few of my favorite quotes, confirming my ideas."There is not necessarily mutual exclusivity between the success of the Bitcoin network and all other digital asset networks. Rather, the rest of the digital asset ecosystem can fulfill different needs or solve other problems that bitcoin simply does not.""Other non-bitcoin projects should be evaluated from a different perspective than bitcoin.""Investors should hold two distinctly separate frameworks for considering investment in this digital asset ecosystem. The first framework examines the inclusion of bitcoin as an emerging monetary good, and the second considers the addition of other digital assets that exhibit venture capital-like properties."Simple but clear. There's Bitcoin and there's everything else.Adjust your thinking.I have said this all along and Fidelity agrees; Bitcoin’s first mover advantage is an incredibly serious one. This isn't a technological aspect or innovative concept, it is merely a fact. But it is one that REALLY MATTERS. Bitcoin is years ahead of any competitor.“Because Bitcoin is currently the most decentralized and secure monetary network (relative to all other digital assets), a newer blockchain network and digital asset that tries to improve upon bitcoin as a monetary good will necessarily have to differentiate itself by sacrificing one or both of these properties. A competitor that tries to merely copy Bitcoin’s entire code will also fail as there will be no reason to switch from the largest monetary network to one that is completely identical but a fraction of the size.”What's described above is the blockchain trilemma problem. When an altcoin attempts to solve for speed, scalability, or decentralization, they unintentionally end up sacrificing a necessary quality in a trade-off. Bitcoin is already secure, decentralized, and scalable enough. The wheel does not need to be reinvented! That does not mean that those altcoins lack value - it just means that they need to do something different than Bitcoin, where that tradeoff is worthwhile.I think this simple, but powerful idea sums everything up, “a competitor that tries to merely copy Bitcoin’s entire code will also fail as there will be no reason to switch from the largest monetary network to one that is completely identical but a fraction of the size.”This doesn’t mean that Bitcoin is the greatest investment of the digital asset revolution. It means that Bitcoin IS THE REVOLUTION. Copy cats will come and go, but they will never have the network and characteristics necessary to compete with Bitcoin.There's Bitcoin and there's everything else.Chart Request Live Stream at 1:30 PM EST. Please follow the rules. I cannot take requests at any other time, so if you send them during a different window they may not get charted. Remember, no more email requests.1 chart per person, per weekSubmit your request between now and 12:30 PM EST.You can only submit your request through the link below.If it is not on TradingView, there is a chance I will not able to chart it.REMINDER: I can only do so many charts on the livestream. My assistant picks 25 random requests from everyone’s submissions and those are the coins I chart.Chart Request FormIf you are a new member, please refer to THIS BLOG for instructions on how to make my charts your own.In This Issue:Bitcoin Is In A Class Of Its OwnHidden Bullish On-Chain Signals - IntoTheBlockBitcoin Thoughts And AnalysisAltcoin ChartsMichael Saylor Finally Bought The DipInnovation Is On SaleMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO