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A thread on altcoins.
They are nuanced. We have:
-Protocol coins
-Utility tokens
-Security tokens
-Non-fungible tokens
But to an investor, there& #39;s only 2 types of altcoins. Oscillators and Degenerators. You can spot them on this chart of the entire market.
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They are nuanced. We have:
-Protocol coins
-Utility tokens
-Security tokens
-Non-fungible tokens
But to an investor, there& #39;s only 2 types of altcoins. Oscillators and Degenerators. You can spot them on this chart of the entire market.
/1
The vast majority of alt-coins are Degens. Their price chart has a measurable half-life, like radioactive decay. Plotted on a log chart, it& #39;s a straight line down. (This one is Namecoin, a promising coin of its era, there& #39;s over 2000 examples like this).
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A handful are oscillators. Oscillators are proving SoV properties.
To qualify they need to keep up with BTCUSD gains. To find them, plot their BTC value. It must oscillate around a horizontal line, for at least one full bull-bear cycle (around 4yrs). More cycles are better.
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To qualify they need to keep up with BTCUSD gains. To find them, plot their BTC value. It must oscillate around a horizontal line, for at least one full bull-bear cycle (around 4yrs). More cycles are better.
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Let me bring up this Oscillator. It& #39;s DOGE, a coin that was created as a joke, it has had no active development for years. It& #39;s a humour fork of Bitcoin offering no technical innovation.
And it& #39;s a freaking oscillator.
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And it& #39;s a freaking oscillator.
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DOGE achieved SoV because of Lindy Effect. It& #39;s listed on nearly all exchanges, it& #39;s supported by most wallets, it has a liquid market.
Note I didn& #39;t say it has cutting edge technology, scaleability, fancy smart contracts, governance, or has solved sharding.
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Note I didn& #39;t say it has cutting edge technology, scaleability, fancy smart contracts, governance, or has solved sharding.
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I point this out to mock the common thought train that you need innovation and cutting edge tech to build value in your coin.
These are monetary instruments, they build value with economic network effects.
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These are monetary instruments, they build value with economic network effects.
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