It Took Way Too Long
I resisted for as long as I could. I didn't buy in, when in my heart I knew there were good reasons, now I am throwing in my towel and giving into to becoming a BTC maximalist - sorta.
It's hard to admit when you make a mistake - It's hard to say all my prior ideas where wrong and I am changing my stance, but what better way to do it than on the Block Chain where I can be ridiculed for years to come when I get it horribly wrong!
While I am not a true follower of BTC Maximalism - I will be working towards moving my portfolio towards an 80/20 view.
Reviewing my Old beliefs
Lets take a look at my own arguments and see why I am changing my perspective.
- Bitcoin sucks as an actual currency. It will be replaced by (xxxxx)
This was one of my biggest issues for a long time. I feel into the trap of viewing it as digital currency, used to transact between people and potentially business. I kept looking at the new coins coming out that were cheaper, faster and easier to use for payment. It has taken a long time to understand that the value of BTC is not from replacing point of sale and peer to peer transaction. Earlier in my crypto life I liked coins that did things, I have a hard time putting my money into a product I don't use; and can't make a concrete use for. This helped me avoid a lot of ICO that were going to be used for an industry, but never went anywhere.
- If its not used as a currency - what does it do, why is it better than (xxxx)
Yup - I ignored one of the current biggest use cases. BTC is the default pairing for every exchange, for every currency. Everything is valued in BTC, want to buy a new coin, you have to buy BTC first. It is the default trading baseline, much like traditional markets are traded against USD, crypto is mostly traded against BTC/SAT's. If the whole game of buy/selling an alt is to get more SAT when you sell, I should have understood that more and more BTC is going to get sucked up and locked away.
- Mass Adoption of the general public will be too hard.
I missed the point, the general public - is getting younger every year. They are more tech savy that will help adoption. Plus, I didn't need the general public to want to join crypto, all they had to be do was to be lead. This is where I missed big companies like Telsa, BTC ETF, etc all getting in. Once the big money joins, BTC will explode to stupid level, most likely dragging some alts up with with.
- Not Framing the Scarcity Factor Correctly
We all know BTC is scare - but while I would say the same thing it didn't click until this year. Part of my issue is combined with the mass adoption. If it never took off, then it didn't matter how scare it was. Now that I see the trend, scarcity matters. If another company buys 1B in BTC - where does the price have to go. Give the coins Lost from the early days, the diamond hand of true believers - there is not that much out there to support without massive price increases
What happens if every millionaire wants 1BTC
What happens when you open BTC up to retirement accounts. The amount of money in 401k's and IRA's is massive. If even small percentage of people decide they want to own some ETF in their account - supply is going dry up.
- New Approach 80/20 - ish
I think as I work through 2021 I will be moving out of some stuff I have had for ages that I no longer in love with. Its hard to say good bye, but coins like LTC, DASH, BCH are going to move into BTC. I don't see a real need to hold these other coins, and while I think they can still exist, function and provide value - none of them have what BTC does for me at this time. I am sure given their price levels, they are more likely have the potential to go up more than BTC. I think I will end up with around 80% of my holdings in BTC - with a few others
- What else I will Hold.
- ETH - If they manage to pull out ETH 2.0 - I can see it being what we all thought. Like BTC its got that first mover advantage and bag holders to drive it.
- LEO/HIVE/CUB - I still clearly believe in this platform. I will be holding and investing into it because this community clearly is moving forward and has a big vision.
- Pirate Chain - I think as we continue privacy will become gold. and Pirate Chain will become my go to for peer to peer as more people become aware and move towards privacy.
- ALGO/ARK/BNB - these are interesting and I think the best way to learn, is to put a small amount of money in and use it. If I get into DeFi - it appears BNB is required for everything. I don't own any today - but these are the ones I am more interested learning about.
- Free to Earn - I will group these as they will be small. PRE, BAT, THETA - whatever else comes along. Since they are free - I will most likely HODL - but may sell from time to time to get more BTC.
Summary - I Know I Missed Your Favorite Coin
I am 100% sure I missed the coin you love, and I am confident it will 5-10-100x and I will miss the gains. I am ok with that, I am probably too late on the BTC bandwagon, but all I can do is to be honest with my assessment, and put my money where I think it is treated best.
While I sure wish I held on to all that cheap BTC I had in 2017 - I will say the same thing In 2030. Price swings, and changes is always relative.
Until I start to see BTC be unseated by a new currency, I think I will admit I was wrong and move towards BTC hoping for the best.
What are your plans?
sincerely,
This post NOT financial advise, it contains my personal opinion and experience and is intended for educational purposes. Perform your own research and analysis prior to making investment decisions.