Let these truths function an essential 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. Whenever you start throwing 10X your weekly paycheck on the newest meme coin and shopping for the latest scorching JPEG for hundreds of {dollars}. If you find yourself able to stop your profession and go full-time crypto … keep in mind 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 this can be a huge recreation of scorching potato — would be the ones who go away the sport as winners. Take into account 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 worth down 2%, simply think about if 10% of the availability wished to promote. MC and FDV are an phantasm.
2. Video games don’t want tokens
There’s nothing a game-specific token can do 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 deliver in-game belongings 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 possibly 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 aside from BTC and ETH … and so they 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 finest “decentralization in progress”. The truth is, although, that decentralization just isn’t a key metric when evaluating quick 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 might be partnering with Google once you use the search bar to ask “Am I pregnant?”.
6. Influencoors are informative Nincompoops
Positive, there might be plenty of worth in listening to and consuming influencer content material. All the time remember 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 invaluable alpha, however they need to be thought of analysis instruments reasonably than commerce indicators.
7. 97% of TA “Merchants” lose cash over the long term. (*1)
Technical evaluation is something however technical. Sure, it may well present some small insights into worth ranges of concern, however utilizing strains on a chart to make funding choices is a certain 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, and so they can not natively talk with each other. What we’ve 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.
Should you kill ETH, the L1 doing the killing can be sealing its personal destiny. Aside from a couple of exceptions (eg Solana), various L1s and L2 are actually simply bulk consumers of ETH blockspace. Extra importantly, they’re complementary. The success of 1 is sweet 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 unhealthy 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.
