As bitcoin’s market dominance fades, investors will be looking more closely at what the smaller “alt-coins” have to offer. In particular, they will be seeking out those coins with a unique selling point in a hyper-competitive market. And what they will find is that their best bang for the buck will be crypto-platforms. Here is why:
As varied as they are, nearly all cryptocurrencies essentially seek to replace fiat. While a few may provide innovative solutions for a particular industry or offer appealing privacy features, their essential purpose is as a medium of transaction. As such, they are competing with fiat as much as with each other. Unfortunately, their volatility does not compare favorably to fiat in this respect. Unless they can provide a unique selling point, many cryptocurrencies will find mass adoption harder than anticipated.
Likewise, the majority of cryptocurrencies fail to meaningfully differentiate themselves from each other (their talking points even mimic each other). This has lead critics to deride many coins as simply “bitcoin-clones”. So observant investors may be forgiven for thinking that a cryptocurrency shake-out is inevitable. Where might crypto investors turn to find good returns this year?Why Platforms Make Investment Sense
For the reasons stated above, cryptocurrencies will not see tremendous growth in the coming year. Obviously, this makes them a less-than-attractive investment. Investing in innovative tokens that solve real problems with blockchain technology is a better path (think international banks and Ripple). Unlike cryptocurrencies, they certainly won’t be duplicating each others use-cases! But best of all are platforms – as they can support both tokens and cryptocurrencies.
The few select alt-coins that serve as crypto platforms offer the best bet for generous returns. Unlike cryptocurrencies, these platforms can host problem-solving tokens (much as Ethereum does). With platf...