Crypto analyst and podcast producer Peter McCormack launched a thread on Twitter earlier today advising followers to exchange their altcoins for bitcoin.
McCormack, who produces the What Bitcoin Did podcast, listed 14 reasons why you should sell your altcoins. Then, he posted 15 reasons to buy bitcoin.
McCormack’s tweets take place as bitcoin continues to sink below its one-year low. At the time of writing, bitcoin is nudging $3600 and ETH is sitting below $100. It’s a dark time for the crypto community.
If you are accumulating altcoins/tokens hoping 2017 will happen again, please consider:
1. Societies usually converge to a single SoV
2. Hardly anyone is using for MoE (yet)
3. Utility tokens really don't have utility
4. Hardly anything has shipped
— Dr. Peter McCormack – Full Stop (@PeterMcCormack) December 6, 2018
Amidst this prolonged bear market, McCormack has given us advice on what to do next.
Reasons To Sell Your Altcoins Immediately
Some of the reasons McCormack gives for selling your altcoins immediately include:
- “Societies usually converge to a single SoV [store of value]”; societies didn’t adopt gold, copper, silver, titanium, platinum, and molybdenum as stores of value, for example, and focused primarily on gold
- “Hardly anyone is using [altcoins] for MoE [medium of exchange]”; bitcoin is the one major network used for transactions on a semi-regular basis, but few altcoins can say the same, and few people are using altcoins for daily transactions
- “Utility tokens really don’t have utility”, despite the name, and “hardly anything has shipped”; there’s a lot of vaporware in the crypto community and few projects have begun to deliver on their promises
- “Other tokens give you no claim to equity or profits”; you’ve essentially invested in a stock-like item without any of the benefits of a stock
- “Projects are closing down due to poor treasury management” and “smaller PoW projects [are] at high risk of 51%” attack”; as we saw with Vertcoin yesterday, even relatively large altcoin projects can fall victim to 51% attacks
- “The SEC is now in the arena”, and regulatory action against certain security-like tokens could begin any day
- “Ripplecoin is a bot army and propaganda machine”, claims McCormack (he’s referencing XRP, which is one of the few altcoins surrounded by positive news as of late)
For all of these reasons, McCormack insists that anyone accumulating altcoins and tokens “hoping 2017 will happen again” should consider the above points. Prices may rebound for certain major cryptocurrencies, but many altcoin projects have nowhere to go but down. Prices will continue to sink as projects languish into obscurity.
Reasons To Buy Bitcoin
At the same time, McCormack insists that bitcoin is the best place to put your money. While altcoins are dragged down by the points above, McCormack believes bitcoin will continue to be the king of crypto, and that today is a great time to buy bitcoin.
- “While volume is down there is significant liquidity”
- “There is no leader” of bitcoin who tells you lies and overhypes the project; while most altcoins are run by a centralized management team, bitcoin has no such thing
- “It is the leading crypto SoV “store of value”
- Lightning Network is growing rapidly
- Bitcoin’s main problems right now are mining FUD, and McCormack believes that all of this is just FUD [Fear, Uncertainty, and Doubt]
- “The SEC has confirmed it is not a security”; this is partially true because SEC commissioners have made statements indicating as such, but the SEC as an organization has not made a blanket statement stating that bitcoin is not a security
- “An ETF is coming”; this may also be true, and we may have our first bitcoin ETF approved as soon as January 2019 (or, it may never be approved)
- Institutional grade custody options are expanding (this is true for bitcoin and a small number of other cryptocurrencies, although it’s unclear if any institutions have significant interest in institutional custody solutions)
For all of these reasons, McCormack believes you should buy as much bitcoin as possible immediately. McCormack also mentions things like vibrant OTC markets, strong futures markets, and a bitcoin ETP that recently launched in Switzerland. All of this is good news at a time when the surrounding crypto markets are collapsing.
McCormack also brings up the point that bitcoin has survived more serious events in its past, including the closing of Silk Road, the Mt. Gox debacle, a civil war (with BTC versus BCH), the ban in China, relentless FUD from mainstream financial analysts and economists, and other major issues.
Is BTC Maximalism The Way To Go?
Ultimately, Peter McCormack is a bitcoin maximalist who sees limited value in altcoin projects moving forward. In his rant on Twitter earlier today, McCormack trashed every altcoin while promoting bitcoin as the one true cryptocurrency.
McCormack, by the way, insists that he isn’t a maximalist. As proof, he mentions three altcoin projects that have promise (Augur, Grin, and stablecoin projects).
Are altcoins going down? Is bitcoin going up? Who knows where we will be one year from now – but the future looks murky across the crypto industry.