The mainstream media is passionate about headlines where they call the bubble crypto. You can see this everywhere.
I, on the other hand, wrote several articles on why I believe the opposite is true. However, as a mental exercise, I like to think of which tokens would stand if the bubble really burst.
I'm not alone in this strange exercise - Daniel Jeffries also wrote about it, saying that something like 10% of the current crypto-coins exist a chance to overcome any bubble blast that may occur.
The 10% of projects that went through the bloodbath would be converted to Amazon, Google and Facebook of tomorrow and probably even to JP Morgan and Goldman Sachs, as well as to mention future governments such as digital direct democracies or liquid democracies.
Before diving into my opinion on the subject, let me give you a caveat:
I believe that the so-called "crypto-bubble" is unlike anything we've ever seen, including the internet bubble and the tulip bubble, and when / if it blows up, it will not behave in a legitimate way or the way investors expect. I can not predict the future, but I know that crypto-coins are different. And I'm not alone in that opinion.
All told, my three choices for surviving the "Crypt Crash" are Bitcoin, Decred and Monero . Let's share this individually.
Bitcoin - The "Value Reserve"
Bitcoin has existed for nine years - an eternity when it comes to crypto-coins. It has been to hell and returned several times, including some forks in the "not so recent past".
Many of the problems involving Bitcoin come from members of the community who wish to satisfy demands of scale, forcing Bitcoin to remain a currency. Without getting technical, it seems to me better if we let Bitcoin remain what it has become: a long-term value reserve.
Many big names on the market do not agree here, but in my opinion, Bitcoin will come to replace things like a 401k is a kind of employer-sponsored retirement plan or a traditional investment account. It will be something that you have gradually put money into and expect a decent return over the years.
If this is indeed the case, I believe we should stop trying to force Bitcoin to be a currency. This may be Satoshi's original vision, but it may also be that Satoshi did not anticipate such scalability problems nine years later (and if you're reading this, Satoshi ... please forgive my blasphemy).
Letting Bitcoin be the store of value that most people are using, this opens the door to yet another survivor of the "crypto crash." This kind of currency would need to have low rates and be quick, which brings us to my next choice.
Decred
Totally decentralized, Decred makes changes in the system by the vote of the entire community. There is no centralized coalition that can "fork" the blockchain whenever you feel like it. The community really makes the decisions, and that makes Decred stand out.
In addition, Dered is implementing the Lightning Network, making it extremely fast and with low rates. In short, this slot for survivors is the "I'd buy a coffee with this token" slot.
I recognize that there are several alternatives to being in this place among the survivors, especially, in my opinion, Litecoin. However, being a fork of Bitcoin, I believe that most people will opt for a day-to-day currency that is different from Bitcoin to be distinguishable. And Decred is not just an option with which you can buy coffee and groceries - it comes with a "savings account" too, through your proof-of-stake system.
By saving your Decred coins, you earn a fixed amount of "interest" as you would on a traditional savings account. Except with Decred, you're doing significantly more than you would with a bank.
So far, I have said that Bitcoin will survive the "Crypto Crash" because people will need it for long-term investments, and a token such as Decred will survive for practical daily use. This brings me to my last selection of survivors.
Monero - "Safe and Anonymous"
The third aspect of financial life, in my opinion, is security. There are transactions that require anonymity for a variety of reasons that are not illegal.
Perhaps one government wants to transact with another without the whole world knowing, or maybe a business wants to make a purchase of another business not yet public. Or perhaps more security is needed between the parties because of legal concerns.
Whatever the reason, I believe that at least one token that focuses specifically on anonymity will survive the "Crypto Crash". It will probably be used primarily for transactions and not for storing value or making daily purchases.
3b
It is worth mentioning that Ethereum is not on this list. None of this is to say that Ethereum can not or will not survive a crash in the crypto-coins market. However, I wanted to put only three essential tokens, and ETH failed to be a part of them.
I love (and currently do hold) Ethereum, and I think it will be huge in the long run. But if a failure happens, I would expect all ERC20 tokens to suffer a heavy blow, as many of these tokens have undeveloped (or non-existent) technology.
Do not let the possibility of a market crash driving you away from the crypto-coins
Are crypto-coins in a bubble today? Will it fall and ruin the economy? Perhaps. Can anyone in the financial world really see the future to know when or if it will occur? Absolutely not.
There is much to be learned and a lot of profit from the incredible innovation that is the crypto-coins for you to stay out of. Get Involved! Do your own research and invest in a token that will help you achieve your goals in life.
The more you get involved with this community, the more you will understand how unlike anything the financial world has ever seen. This will not eliminate the risk of Crypto Crash, but this will give you opportunities you will not find anywhere else. And for me, it's worth it.