Crypto Economist Tuur Demeester Reveals Coins Biggest Winners & Losers
Tuur Demeester's “Why You Should Not Diversify Crypto Investments” Tweet About Coins All Time Highs % Down
Usually, in business, there is a wide-held perception that diversification of assets is the best way to invest. Supposedly, adopting such an approach guarantees some profitability in cases one if this asset fail. However, according to Tuur Demeester, a renowned Twitter Bitcoin investor, this principle does not necessarily assure traders of profits, particularly in the cryptocurrency market.
% down from ATH pic.twitter.com/h3NE8MFmNC
— Tuur Demeester (@TuurDemeester) June 23, 2018
Recently, Tuur tweeted a photo showing the dismal performance of altcoins in comparison to Bitcoin, which itself has been appalling since the beginning of 2018. Albeit sarcastically, Tuur played down the diversification of crypto investments. In a subsequent tweet, the enthusiast posted a photo showing that the dominance of Bitcoin has risen to the level it was in mid-2017, while the market capitalization of small altcoins has undergone a nosedive.
Still, regarding the dismal performance of leers-known virtual currencies, Demeester posted a table showing the deviation between the all-time high market value of individual cryptos and their current prices. Unsurprisingly, the list’s summit was dominated by altcoins such as QTUM, LSK, TRX, DASH, and so on. Even worse, a significant majority of these altcoins had a depreciation that is well above 85%. Going by these figures, Bitcoin’s 70% decline is somewhat respectable.
Coming from a Bitcoin hobbyist, it is easy to downplay these statistics as a biased view. Unfortunately, numbers do not lie. It is evident that most of the altcoins are not popular among the crypto investors community. Hence, it is not recommendable to invest in them, since they are unlikely to return a significant profit. In fact, they are more likely to bring losses.
As expected, most of the responses seemed to agree with Tuur. Diversification in the cryptocurrencies market, after all, is overrated. Therefore, it is advisable to specialize in significant cryptocurrencies since they are naturally superior to the upcoming altcoins.