Economist Fred Krueger has taken a clear stance on the Bitcoin vs. altcoin debate, stating that he believes Bitcoin is the only cryptocurrency worth holding for the long term.
Krueger praised Bitcoin’s stability and long-term potential, while also drawing attention to the risks and challenges associated with altcoins. He noted that historically, most altcoins have failed to maintain their value compared to Bitcoin. He particularly noted that Ethereum’s peak value in 2017 has fallen significantly since then. Similarly, he emphasized that other coins such as Litecoin and EOS have also lost value in the period before 2020.
Bear Markets Require Patience and Faith
Krueger highlighted the importance of the term “diamond hands” when investing in Bitcoin, meaning the ability to hold onto investments during downturns is critical. He argued that altcoin holders are more likely to panic and sell during market declines. He noted that Bitcoin has created a more solid belief among its investors.
Altcoins Are a Temporary Trend
Comparing the cryptocurrency landscape to technological evolution, Krueger likened altcoins to bygone tech companies like AOL and Myspace. He said Bitcoin is impervious to such obsolescence because it was designed to be “perfect money.”
Researching Altcoins Is a Waste of Time
Stating that hundreds of new altcoins are launched every day and that continuous research is required to evaluate them correctly, Krueger stated that this is an unnecessary burden for many investors. He suggested that simplifying the investment strategy by focusing only on Bitcoin would prevent waste of time.
Krueger criticized many altcoin projects that he described as scams, noting infamous examples such as “Safe Moon Coin,” “Bitconnect,” and “Celsius token.” He also warned about potential regulatory risks facing altcoins, specifically stating that the U.S. Securities and Exchange Commission (SEC) could classify some altcoins as securities. This could lead to price drops and the removal of some projects from circulation.
Altcoins Are Like Ponzi Schemes
Krueger noted that many altcoins operate like pyramid schemes, relying on a constant stream of new entrants to maintain their value. He stressed that when the flow of new investors stops, these projects are likely to collapse.
Overly Complex Structures
Stating that altcoins generally contain complex mechanisms and this is challenging for investors, Krueger stated that Bitcoin offers a simpler investment approach.
Altcoins with No Supply Limit
Finally, Krueger highlighted a key difference between Bitcoin and most altcoins: the total supply. While Bitcoin has a fixed supply of 21 million coins, many altcoins can issue tokens indefinitely. This leads to inflationary pressures that Bitcoin avoids.
