Economist Fred Krueger has taken a strong view that Bitcoin is the only cryptocurrency worth holding for the long term, as the debate in the crypto world continues. Krueger details the potential risks and benefits of Bitcoin, particularly altcoins, and explains why focusing solely on Bitcoin makes more sense as a long-term investment strategy.
Krueger analyzes historical data to highlight that most altcoins have lost value over time against Bitcoin. For example, he notes that Ethereum has lost significant value compared to Bitcoin since its peak in 2017. Stating that other popular altcoins such as Litecoin and EOS have experienced a similar decline, Krueger believes that this situation applies to almost all cryptocurrencies released before 2020. He argues that altcoins may gain popularity in the short term, but they will not be able to withstand as strongly as Bitcoin over time.
Krueger states that Bitcoin investors have the ability to take a strong stance in bear markets. Explaining the term “diamond hands,” he argues that the belief in Bitcoin is much stronger than in altcoins during downturns. Stating that altcoin owners tend to panic and sell during stagnant market periods, Krueger states that this panic causes altcoins to lose value and investors to lose money. He emphasizes that Bitcoin investors tend to think long-term and protect their positions.
Krueger likens altcoins to outmoded platforms in the technology world. He claims that altcoins could face a similar fate, citing technologies such as AOL and Myspace that were once popular but have since been forgotten. He believes that Bitcoin was created as a “perfect money” and therefore cannot become obsolete over time. Stating that most altcoins are short-term projects, Krueger suggests that these projects do not exist continuously.
Stating that new altcoins are released every day and that evaluating them correctly is a time-consuming task, Krueger states that investors having to research every project is both risky and an unnecessary burden. For this reason, he argues that focusing only on Bitcoin will provide a simpler and safer investment strategy. In this way, investors will be able to stay in a safer haven by staying away from the constant changes in the altcoin market.
Krueger clearly states that many altcoins are scam projects and pose great risks to investors. He reminds that such projects can cause serious losses to investors, citing notorious projects such as Safe Moon Coin, Bitconnect, and Celsius token. He also notes that Bitcoin is more resistant to manipulative attempts.
Krueger also draws attention to the regulatory risks that altcoins face. He states that the possibility of the US Securities and Exchange Commission (SEC) classifying some altcoins as securities could seriously affect altcoin prices. Stating that such regulatory pressures pose a significant threat to altcoin investors, Krueger argues that Bitcoin will be less affected by such risks.
Krueger states that many altcoins operate on a pyramid scheme and constantly need new investors to maintain their value. He argues that when the flow of new participants stops, it is inevitable for these schemes to collapse. He believes that Bitcoin is not based on such a system and therefore has a more robust structure.
Krueger notes that altcoins often offer complex features for investors and developers. He argues that elements such as tokens, staking schemes, and airdrops make altcoins unnecessarily complex. He states that Bitcoin offers a simpler investment strategy without the need for these complex mechanisms. Finally, he emphasizes that one of the most important differences between Bitcoin and altcoins is the supply limit.
