Idea #2 - Why Are Most Altcoins Dogshit? How Do We Fix This?
I have a couple of questions for everyone.. why are most of the altcoins complete dogshit? How can we fix this?
The crypto community is wondering.. why are all the altcoins dropping?
When will they go back up? Will they go back up?
After dealing with HUNDREDS of coin developers i have learned something interesting.
For most developers.. the point of making altcoins is simple...
You create a coin.. sell it to a bunch of idiots who think they will profit from it.. and then the coin developer leaves with the real money.
That's it, this is the ICO business model.
That's the coin developers plan from the start.. you as the investor are nothing.. the developers just want to sell the coins and go buy a nice house.
We can see the same pattern that has been repeated over and over.. and over and over again.
- New coin created
- Coin is marketed, making great claims
- Coin is sold, developer banks money
- Development stops, as the developer is off partying with your money
- Buy orders start to slow down
- Price of coin starts to drop
- Investors start getting scared
- Sell off begins.. coin drops to nothing.
Now lets compare these shit coins to a high value coin.. such as Ethereum.
Why is Ethereum so expensive? Why did it hit $1200+ per coin?
It's very simple..
Ethereum increased in price massively because everyone was buying Ethereum to invest in ICOs.
Each day millions and millions of dollars of Ethereum was bought, and each day millions was sold.
This created a real eco system of buy and sell orders.. a real use for the coin not just speculation.
https://bitrad.io/ - A bitcoin radio station using its own token.
This coin is now worth nothing and has virtually $0 daily trade volume.
The project had 10,000+ users, a great ICO and much interest in the project.
I asked the coin developer.. why would people buy this coin? You cant buy ads, you cant use it on the site.. why would someone buy it?
Only one reason to buy this coin.. speculation.
Someone may invest in this coin hoping the price will increase.
It won't.. unless there is a real reason to purchase this coin!!
If people buy this coin for a real purpose, it will create buy orders and the price of this coin will increase.
But like all of these shit coins.. they ran the ICO.. got the money and that's it.. job done.
http://bit.diamonds/ - Diamond coin.. one was of my favorite coins back in the day due to the POS staking, low supply and nice looking wallet.
Diamond coin was worth around $31 at it's peak.. now it's down to 47 cents each and has a daily trade volume of $902.
Why would someone buy diamond coin?
The only reason is speculation or to stake the coins for profit.
Although, if no one buys the coin for any other reason then speculation.. who is going to buy those staked coins.? Eventually we will run out investors and the coin price will drop.
Ill give one more example..
A new Chinese coin i have been mining, called BitcoinHD.
This one was worth $30 at it's peak, and has now dropped to around $3 each.
This coin has some great features and allows you to mine with your hard drives which is very profitable.
But why is the price dropping?
It's very simple.. there are more sellers than buyers.
A small amount of people will invest in this coin based on speculation, while at the same time ALL of the miners are trying to sell the coins they mine.
This creates a downward spiral where the price keeps going down and down.
My point of this article is simple - There MUST be a real reason to buy an altcoin.
It simply MUST have a real world use, which will create real buy orders.
What if these coins were hosting all of the ICOs like Ethereum was? Of course the price and trade volume would be massive.. it's basic mathematics.
Simply basing ones entire market solely on speculation is just a ponzi scheme.. eventually we will run out of new investors and the coin value will drop to nothing.
We have seen this hundreds and hundreds of times.. when will we learn?