An explosion of activity in the crypto space has been matched by massive rises in crypto valuations. And just when you think it could not go any higher, another coin or token goes 10x. And people love to speculate and they want to be in on the next big thing in crypto. Some might say Tulip Mania.
Amidst the speculation is the idea that a handful of cryptos will eventually rise to become kings. Surely a thousand hobby coins can not survive? I agree to some extent, but it’s not entirely accurate. I believe, when you find the right analogy, your perspective and understanding of future trends becomes far clearer.
So from now on, I want you to start thinking of all the various coins as programming languages. COBOL, for example, first appeared in 1959 and it’s offspring still live on, albeit as a relatively minor language. Thirteen years later, C was introduced to the world and eventually C and it’s children (forks?) came to dominate the top ten programming languages on github; http://pypl.github.io/PYPL.html
Smart contracting system (Ethereum et al) are a little different. They might be better thought of as Operating Systems / Virtual Machines. Thus, the faith you put on any individual token will be intrinsically linked to it’s roots.
Matching a programming languages to a particular task is an important step in the development process. The same holds true for blockchain technology; a variety of blockchain projects aligning themselves with various verticals. As a long term investor, it therefore seems to me, the best digital assets will master the art of relevance. They will adopt the best standards while providing unique solutions that stand the test of time.
There is no perfect one-size-fits-all language. And every languages / platforms has it’s own shortcomings / strengths. Some programming languages have a small but hardcore group of followers, while others might experience a resurgence. The same holds true for blockchain technology. So instead of blindly chasing market caps, seek out the communities and the use cases. Connect with the projects that inspire you and find a place you can call home. Good luck!