Should you invest in Cryptocurrencies or in Bitcoin? I always felt safer investing in whom dominates the industry, in this case Bitcoin, but newer cryptos have been showing very large growth. Over the past year Bitcoin has always kept a market dominance of 30%-70%. As a result when we see the crypto market cap expanding we also see a large increase in the price of a Bitcoin. The crypto market cap will undoubtedly continue to grow, the question is will Bitcoin grab most of that growth or will it be spread out throughout many other cryptos, with bitcoins dominance fading out?
I believe that cryptocurrencies have such a simple yet useful utility. For the coming years, cryptos will be a great way to store value and a much better medium of exchange than fiat money, because there are no regulations. It will be much easier to conduct very large transactions without the involvement of banks or governments. So the cryptocurrency market cap will continue to grow, in my opinion.
As the market cap grows, the amount of cryptocurrencies also increases as they are created very easily by anybody who wanted to. What i have noticed is that those new cryptocurrencies tend to pinpoint a specific industry. For example potcoin aims at dominating the marijuana transactions industry.
The new cryptos therefore only add on to what Bitcoin can do. For this reason I believed that Investing in Bitcoin alone is good.
One should find growing industries and invest in the related cryptos, if he wishes to diversify his portfolio and not hold Bitcoin only. Some new cryptos have been getting extremely quick growth and those are the ones we do not want to miss.
Example of 2 such cryptos i invested in last week are Tron and XP. Tron is up from 0.035$ when i bought it 5 days ago to 0.126$ as i am writing this. XP is now 0.0022$, and was 0.0013$ when i invested in it 5 days ago, and was even 0.0001$ 2 weeks ago.
This goes to show, that investing in new cryptocurrencies can have much larger returns than holding bitcoin but one should diversifie as the new cryptos tend to be very volatile.