Let these truths function an necessary reminder of the bull market to come back. As your portfolio grows past your wildest expectations, and you start to lose perspective on the worth of cash. If you start throwing 10X your weekly paycheck on the newest meme coin and shopping for the latest scorching JPEG for 1000’s of {dollars}. If you find yourself able to stop your profession and go full-time crypto … do not forget that the sport is 100% participant vs participant, and most gamers will lose ultimately. Those that acknowledge the shift and the tough realities — that the majority of it is a large recreation of scorching potato — would be the ones who go away the sport as winners. Take note these are generalizations, and are usually not meant to use universally … exceptions exist.
1. Market cap and Absolutely diluted worth are BS metrics
DogeCoin has a market cap of $11.5B, however that quantity of worth can’t be extracted. A mere $1.5M greenback promote would push the value down 2%, simply think about if 10% of the provision wished to promote. MC and FDV are an phantasm.
2. Video games don’t want tokens
There may be nothing a game-specific token can try this ETH or USDC couldn’t do higher. Even probably the most profitable Web2 recreation couldn’t maintain a token: World of Warcraft had an enormous demand for its gold, however the worth of that gold was on a everlasting downtrend. Tokens will be helpful to carry in-game belongings exterior to the true world, however within the present iterations are nothing however cash grabs.
3. Governance and Staking are usually not token utilities
Other than ETH and perhaps the highest couple L1s, governance is a sham utility that gives subsequent to no worth. Staking is even worse, as it’s predominantly paid for by inflation (which is simply redistributing the protocol’s worth from non-stakers to stakers)
4. Nothing is definitely decentralized other than BTC and ETH … they usually don’t should be.
Decentralization is a scale, and within the case of startup protocols typically a luxurious. BTC and ETH are sufficiently distributed to be thought-about “decentralized”, however successfully all the pieces else is at finest “decentralization in progress”. The truth is, although, that decentralization shouldn’t be a key metric when evaluating quick and mid-term investments as within the case of nearly all of altcoins.
5. Crypto partnerships are typically a farce
Crypto partnerships are like suggesting you’re partnering with Google whenever you use the search bar to ask “Am I pregnant?”.
6. Influencoors are informative Nincompoops
Certain, there will be loads of worth in listening to and consuming influencer content material. All the time needless to say they aren’t your buddies, typically will dump tokens on you, and have entrance run each alternative they current you. Granted, there are many good ones that present helpful alpha, however they need to be thought-about analysis instruments slightly than commerce indicators.
7. 97% of TA “Merchants” lose cash over the long term. (*1)
Technical evaluation is something however technical. Sure, it may present some small insights into worth ranges of concern, however utilizing traces on a chart to make funding choices is a positive option to get wrecked long run. Over 97% of day merchants lose cash over the long run, purchase your conviction performs and be affected person.
8. True interoperability doesn’t exist
Blockchains are silos by design, they usually can not natively talk with each other. What we have now are more and more higher technique of automated third-party communication between chains, with lowering quantities of friction because the tech improves.
9. There will be no ETH-Killer.
Should you kill ETH, the L1 doing the killing can be sealing its personal destiny. Other than just a few exceptions (eg Solana), various L1s and L2 are actually simply bulk patrons of ETH blockspace. Extra importantly, they’re complementary. The success of 1 is nice for the opposite.
10. Maximalism is Poisonous
The laser-eyed BTC maxis decrying all the pieces as “shitcoins”, the ETH maxis with disdain for different L1s, and the SOL maxis with the “ETH is rubbish” tagline are all dangerous for crypto. The truth is we should always all be cheering on and serving to one another. The success of 1 is the success of all.
