Altcoins in the sellout – Why currently only Bitcoin holds itself

The Bitcoin share price has remained very stable in the last few days. Unfortunately, this cannot be said of the Altcoins. The Altcoin bloodbath has been going on for days and reaches new lows every day

The hype about Decentralized Finance (DeFi) is sitting on the substitutes‘ bench for the time being, waiting to be replaced. Currently, only the big players are allowed to play. We look at ourselves in this article, why Wealth Matrix strikes itself so well and Altcoins continues to lose value.
Bitcoin vs. Altcoins

Bitcoin is not only the first and most decentralized crypto currency, but also the most secure and widely used. For years BTC has dominated the crypto market and sets the pace.

Bitcoin is not only based on decades of research, but above all on the foundation of freedom and privacy. The idea behind BTC was never to become rich by doing so. Here completely different ideals were pursued, based on the cyberpunk movement.

With Altcoins, on the other hand, the situation is completely different. The first Altcoins were created when Bitcoin was first traded for real money. From this time on everyone knew that a crypto currency, i.e. a purely digital asset, could be traded for real money. It took almost 2 years with Bitcoin, until it was at all so far.

The result was a flood of different Altcoins, which often sold as the better version of Bitcoin. Some of them were faster, easier to use and could scale somewhat better. For some, this was proof enough that BTC would soon lose its leading role.

The lack of understanding

This fallacy cost most people dearly. Most of these projects have run against 0. This is exactly what we are facing with projects that are currently among the top 100 on CoinMarketCap.

The lack of understanding of money and the innovation behind Bitcoin leads especially beginners again and again on the wrong track. They let themselves be lured by the promises of the various Altcoins and sometimes believe that the next Bitcoin will be.

Only very few understand that there will be no next Bitcoin. However, some believe that similar returns can be achieved with some Altcoins. But this is like looking for a needle in a haystack. There are certainly one or two projects that will deliver an enormous performance, but such a hit is more like winning the lottery.

No natural demand for Altcoins

There is no natural demand for Altcoins. The only exception is currently Ethereum. ETH is used on the Ethereum block chain to pay for transactions and smart contracts. Due to the DeFi hype there is a certain demand for ETH.

The rest is only short-term speculation. Almost all investors are only interested in money. The sense behind the crypto currency and whether one ever uses it for the actual purpose is irrelevant. All run after the yield of Bitcoin and believe at the same time that it is already too late with BTC.

Bitcoin is not about transactions within seconds or low transaction fees. These are the typical arguments of Altcoin projects to promote themselves and convince newcomers.

Unfortunately, hardly anyone talks about Bitcoin’s decentralized payment network, which is also based on a healthy fee market. The focus is directed to the wrong characteristics, in order to position itself better.
Limits and problems of Altcoins

Bitcoin is about real digital scarcity and security. Everything else can be developed over time on the Bitcoin Blockchain, for example to solve scaling problems. One of the possible candidates here is the Lightning network, for example.

Many problems and limitations of the Altcoins are concealed. It often seems that the perfect solution already exists in Altcoin XY. But the reality looks different. Especially when it comes to the degree of decentralization and security.

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Bitcoin dominates the crypto market

It is precisely for the above reasons, and many others that would go beyond the scope of this article, that Bitcoin remains at the top of the crypto-food chain. The dependence of the Altcoin prices on the Bitcoin price is in itself and is clearly evident again and again when there are uncertainties about the BTC price.

This is precisely why there is no diversification within the crypto market. A division of the portfolio into Altcoins basically increases the risk, which is not the goal of kla