Let these truths function an necessary reminder of the bull market to return. As your portfolio grows past your wildest expectations, and you start to lose perspective on the worth of cash. While you start throwing 10X your weekly paycheck on the newest meme coin and shopping for the latest sizzling JPEG for hundreds of {dollars}. When you find yourself able to give up your profession and go full-time crypto … do not forget that the sport is 100% participant vs participant, and most gamers will lose in the long run. Those that acknowledge the shift and the cruel realities — that the majority of this can be a huge recreation of sizzling potato — would be the ones who depart the sport as winners. Consider these are generalizations, and usually are not meant to use universally … exceptions exist.
1. Market cap and Totally 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 essentially 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 might be helpful to convey in-game property outdoors to the true world, however within the present iterations are nothing however cash grabs.
3. Governance and Staking usually are not token utilities
Aside from 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 must be.
Decentralization is a scale, and within the case of startup protocols typically a luxurious. BTC and ETH are sufficiently distributed to be thought of “decentralized”, however successfully every little thing else is at greatest “decentralization in progress”. The truth is, although, that decentralization shouldn’t be a key metric when evaluating brief and mid-term investments as within the case of the vast majority 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
Positive, there might be a variety of worth in listening to and consuming influencer content material. All the time take into account that they don’t seem to be 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 worthwhile alpha, however they need to be thought of analysis instruments somewhat than commerce indicators.
7. 97% of TA “Merchants” lose cash over the long term. (*1)
Technical evaluation is something however technical. Sure, it will possibly present some small insights into worth ranges of concern, however utilizing strains on a chart to make funding choices is a certain solution 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’t natively talk with each other. What now we have are more and more higher technique of automated third-party communication between chains, with decreasing quantities of friction because the tech improves.
9. There might be no ETH-Killer.
When you kill ETH, the L1 doing the killing could be sealing its personal destiny. Aside from just a few exceptions (eg Solana), different L1s and L2 are actually simply bulk consumers 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 every little thing 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.
