greentermite 17 September 2019
This article contains opinions of the author and has been written for information purposes only. The information should not be considered as financial or investment advice. It is always important to do your own research. All decisions come with risk and you should never purchase or invest more than you are willing to lose.
A Long Cold Winter
Bitcoin may have received a lifeline in the last 6 months with a surge from around 3.5K to its current level of support around 10K, but it has been the opposite story for most altcoins. It appears investors are flocking to Bitcoin by draining the life out of their prior altcoin investments.
There’s no doubt it has been a harsh 18 months for the altcoin markets. With the extended crypto winter many investors have been out in the cold for just too long. Some with no hope in sight have sold up, packed up and headed for warmer climates, unfortunately probably leaving with less in their pockets than when they arrived. Some are constantly monitoring the weather, dodging blizzards and taking trades opportunistically to keep the home fires burning and the frostbite at bay. Many are simply holding on for dear life, with the embedded hope we have been here before and if we just hold on long enough we can come out the other side. Because spring always follows winter and surely signs of new life and renewed market growth will sprout once more.
A Harsh Reality
The crypto environment is experiencing significant changes with governments introducing tighter regulations, higher Bitcoin dominance, institutional investment, the downfall of the ICO funding model and the fact many projects do not have real world application. In reality, many of the newer projects sky-rocketed to their current status based on hype and possibly unfulfilled promises. Many have not released final products any many are trying to achieve the same goals.
The confidence of investors has been shaken over the last 18 months. People no longer believe crypto-land is full of rainbows and unicorns. If investors have been shaken imagine how much harder it will be for new money to flow into the crypto markets, and I am yet to be convinced institutional investment will be the market saviour.
Is it also worth mentioning we don’t really want crypto to be all about investing? If there is going to be a future for crypto it will be based on the benefits and freedoms it can bring its users. That’s right! Crypto was meant to make our lives better and give us choice and financial freedoms that cannot be provided by the traditional financial systems and business models.
The harsh reality is many altcoins will not survive this crypto winter. Are we starting to see a thaw or will the icy winds extend this winter just a little bit longer? Bitcoin will almost certainly survive, after all it is the long reigning King. However, there are no promises and no guarantees when it comes to crypto but there could also be huge potential and the trick is finding out where.
Crypto Winter Survival Guide
While it is not possible to predict altcoin survivors, those that do make it through this winter will likely come back stronger than ever. Recently I posted the following on Twitter:
Which cryptocurrencies will be around in the next 5 years? Those with:
1) Proven tech demonstrated over time
2) Real solutions & use cases
4) Organic growth & community support
5) No scams & no regulatory complications
#DGB #BTC #VTC #LTC
These five points may be an over simplification of the factors which could lead to the survival and hence future success of a crypto project. But when I wrote this, to me it came down to logic and common sense.
1) Proven tech demonstrated over time – means projects based on sound proven technology with ongoing innovation and demonstrated reliability in real life application.
2) Real solutions & use cases – means projects providing solutions to current or emerging real world needs that are designed with the end user in mind.
3) Decentralisation – means projects committed to eliminating the ability for any individual or entity to manipulate or gain control, including eliminating any centralised points of failure and providing a true distributed and permissionless system where all participants are able to benefit equally.
4) Organic growth & community support – means projects where growth is based on real use and support by real individuals and communities, including growth by meeting natural increases in demand, that is not inflated or overstated by the distribution or omission of inaccurate data.
5) No scams & no regulatory complications – means be wary of projects promising the world and delivering nothing, they are only interested in making themselves rich by hanging poor unsuspecting investors and users out to dry. If they pump it just to dump it stay away!
Also, stay informed about government interests in blockchain and crypto. Off the top of my head, some of these include AML & KYC requirements, privacy coins and whether they are being used for illicit purposes, ICO funding and securities laws, market regulation and in some countries crypto bans. There are certainly others but you get the idea.
DigiByte – Already a Survivor
As you will see I tagged a few projects in my Twitter post that in my opinion stack up pretty well when compared to this ‘Survival Guide’. There were also a few other suggested projects posted in the comments and I am sure you will have your own opinions. If you are in a position to provide comments on this article I am always open to feedback.
So where does DigiByte fit into this picture? In my opinion DigiByte ticks all the boxes, the project has been around since 2014, it is based on sound innovative technology, it has been designed from scratch for real world application, it is hands down one of the most decentralised projects in existence, it is supported by an enormous passionate community and it continues to survive irrespective of harsh market conditions.
As mentioned earlier, there are certainly going to be a smaller number projects that come back stronger when this crypto winter clears. DigiByte has enormous potential and it may surprise many with its future performance.
But please don’t just believe me! I always recommend people do their own research and a great place to start is at www.digibyte.io OR check out the DigiByte Awareness Team (dgbat.org) and the DigiByte Unlimited Network (@DigiByteUN on Twitter).