"Main Melody" turns to Bitcoin
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- 40% of the altcoin losses exceed 90%, can BTC return to 12000 to drive the market?
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- Analysis: Three reasons why altcoin has failed to disrupt Bitcoin
- Investment institutions: Bitcoin will climb to 100,000 US dollars, the altcoin will "dead"
First of all, the reason for the current bull market rise is different from the previous round of bull market logic. In the last round of bull markets, technology giants and the banking industry have always kept a distance from Bitcoin. They believe that blockchain technology can change existing industries rather than bitcoin.
This situation has caused a large number of venture capital institutions to flow into blockchain projects and altcoins. Large institutions believe that Bitcoin TPS is low and the block size is small, so it is desperately looking for a faster and better blockchain project. Under the influence of this trend of thought, many public chains, including Ripple, EOS, Stellar, etc., have been hyped up by the market.
However, time has passed. The giants have once again changed their minds and refocused their attention on Bitcoin.
Traditional Internet companies are shifting their perceptions of Bitcoin. Banking institutions, technology companies, etc. are contributing to the Bitcoin ecosystem, and giants such as Fidelity and Nasdaq are building bitcoin trading products.
All indications are that the upcoming bull market will be rooted in institutional funding, while institutional funds now choose to buy bitcoin instead of altcoin.
As Jack Dorsey, founder of CashApp, said: “Focus on Bitcoin, not altcoin.” And this concept is gradually becoming mainstream.
The altcoin catalyst has disappeared
In 2017, the rise of Ethereum's smart contracts made ICO a new type of financing that entered the public's eyes. The market was crazy and speculative sentiment, which led to the entire big bull market.
However, now ICO has declined, many variants can not set off the banner of the previous ICO, coupled with the increasingly serious regulation, investors have a certain ability to judge the project. Therefore, for this round of bull market, the lack of a catalyst for the altcoin can be achieved again.
On the other hand, many investors pay attention to the altcoin because it can bring huge return on investment, but high return means high risk. Nowadays, many exchanges have introduced bitcoin derivatives, which are also high-yield products. Although they are equally risky, they can at least not worry about the risk of the project party running away.
Therefore, institutional investors, ordinary investors, may not be so keen to chase the altcoin, but will turn to leveraged trading.
Of course, this does not mean that all the altcoins do not run Bitcoin. For those high-quality projects, once they can land, their future appreciation space may not be able to catch up with Bitcoin.
For the acrobatic coins such as XRP and EOS that have already experienced a round of bulls and bears, if they can't make a major breakthrough, they will be far behind Bitcoin in the next round of bull market.
As for the 100-fold increase in the project, perhaps the quality new projects launched in the bull market can reach such a height, because they can use and speculate, but such projects are equally risky.
For today's market, CoinNess analysts say at least half of the warehouse is needed to invest in Bitcoin, and the rest is based on personal preferences. (Coin World)