Why Bitcoin Will Continue Outperforming the Majority of Altcoins
After months of heartache, low volatility, and an endless negative news stream, Bitcoin and the crypto markets are showing signs of life. Here's why it still may make sense to be Bitcoin-heavy at this point in the cycle.
You just got back from spending three months in the wilderness. You're thirty pounds below your normal weight. You first want a hot shower, a sharp razor, and a good night's sleep in your bed. Then you want to focus on your health. Before your three-month wilderness journey, you had plenty of muscle and strength. After all, you are an amateur bodybuilder. Now, you are wiry, and you want to be able to wreak havoc in the gym again.
Would your priority be going to the gym and working out? Or would you rather give your body some rest, consume more calories, and then start an exercise program and gradually build up your strength?
I'm no doctor, nutritionist, or trainer, but the second option makes much more sense. Once your body restores its health, getting your amateur bodybuilder physique will be easier and more effective.
Like this body recovery scenario, the Bitcoin and crypto markets will go through a similar process as it recuperates from the catastrophic damage incurred over the past year. In this situation, Bitcoin is like your post-wilderness body that will need to recover before altcoins (your muscles in this metaphor) can redevelop.
Why Bitcoin is the life-force behind the crypto market
Bitcoin is unique because the narrative for holding Bitcoin differs from owning any altcoin. While altcoins serve different purposes and utilities, none come close to mimicking Bitcoin's properties — a hedge against fiat monetary policy, a digital store of value, and the largest, most efficient decentralized digital payment exchange network, not requiring intermediaries.
If we continue with the example of the amateur bodybuilder who is malnourished after their wilderness journey, Bitcoin is the mouth of the crypto ecosystem. The largest investment sums occur via Bitcoin. The…