Can the surge of altcoins drive the existing market value growth? | Roast Star Selection

From the recent ups and downs of Bitcoin, we can find a problem: when Bitcoin rises, altcoins fall;

First of all, I divided the currencies on the market into 4 categories, which is convenient for everyone to understand more intuitively.

1. Stable currency: a currency that generates stable value and does not experience large fluctuations. It is mainly used for currency-to-currency swaps and as a medium for legal currency transactions, such as USDT, USDC, DAI, etc., which are commonly used encryption currency.

2. Mainstream currency: that is, the currency that is mature and most used in the market, such as BTC, ETH, EOS, etc., which are familiar and have a market value that has reached a certain scale. The early participants are today's wealthy people. Do not believe in other digital currencies, only invest in this type of currency.

3. Non-mainstream currency: that is, it is still in development, and it is not sure when it will reach the height of currencies such as Ethereum, but there are still many people who are highly optimistic about the project and do not choose it for arbitrage. For example, ATP, DOT, AAVE, INJ, etc. People who buy them believe in technology and the long-term value of the project.

4. Altcoin: It means harvesting a wave of running away, without any substantial value, and it is only born to pull the market. Although this kind of currency is unreliable, there are really some people who are willing to bet on the skyrocketing of the altcoin and wait until the high point This situation can only depend on luck, such as Dogecoin, Pi, SEELE and other popular currencies.

After analyzing the above 4 types, I believe you can also have a subjective understanding of today's cryptocurrency market. Today we will focus on analyzing the 4th category (altcoin) mentioned. The main group it harvests is Xiaobai. Just now Enter the market and watch the mainstream currency rise, and try the water with cheap small currencies, but I didn't expect to invest money because of the bombardment of the community.

In fact, you can always see some stories about your ups and downs in the digital currency field on the Internet, and there are many things about getting rich through altcoins.

Another reason is that there were many pseudo-concepts at that time. People only knew that Bitcoin could make money, but the blockchain technology behind it and where it could really be applied were unknown. This situation is very similar to today, the main difference lies in the comparison of the participating population base, but the proportional relationship is still similar.

It is these two reasons that make altcoins explode and become an "introductory course" for novices. We can also see that this year, old currencies continue to go offline and new ones go online. With the blessing of the DeFi concept , There are also various "swap" applications, and it is impossible to distinguish between true and false.

According to DeBank statistics, in September, when DeFi was the hottest, hundreds of DeFi applications appeared, and in just two months, the survival rate of the projects was low, which did not include the newly launched applications of various names.

So in this era of chaos, can we still allocate assets to cryptocurrencies? Can regulation cure the altcoin problem?

Altcoins have driven the "28th Law" in the market, allowing more people to enter the market, and also allowing early participants to realize profits. In some form, they are forcing the introduction of national regulatory policies as soon as possible to gradually rectify this problem.

In the next few years, I think that there may be a multi-node supervision and audit formed by several alliance chains in the market, and the verification of currency listing, price setting, project evaluation, etc. will be completed on the chain, so as to solve the problem of no alliance chain audit. Problems such as multi-platform verification and slow listing, truly realize the technical application of blockchain and realize "one chain with multiple uses".

As for the altcoins that have skyrocketed and plummeted, I suggest that you should never touch them. I found that there are many currencies that seem to have not yet reached their peak. Can't get in or out, can't withdraw cash. This new model also allows us to learn a new kind of knowledge.

Whether a currency can be held for a long time determines its future, and it itself is like the points we are familiar with, and it will become more valuable after accumulating more. If you make small profits by buying and selling every day, then it must be worthless, and this is the case for all altcoins in the market.

This is why I suggest that you do not touch altcoins, unless you make a living by watching the market every day, otherwise the instantaneous rise and fall is not something you and I can predict.

As for the mainstream currency, if you ask me now if it will continue to rise, I think it will, because they have practical application scenarios, not the kind of altcoins that can be bought and sold instantly.