What if Altcoin Season Never Comes!?

What if Altcoin Season Never Comes!?

By johnwege | johnwege | 30 Oct 2020


Bitcoin has been on the rise as of late, and has been grabbing the market caps from other altcoins.  Most people in the crypto markets have always been under the assumption that during the bull market, first bitcoin will rise and then sometime after the alts will also follow up as well.  We have all been assuming that the next bull market will follow the same history as past runs.  

But what if it doesn't?  What if the market makes a shift that drains out many of the altcoins, leaving only bitcoin, ethereum and a few other coins. It is an idea that everyone who invests into altcoins needs to at least consider.

Let's talk about this more.

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Well first and foremost let me tell you that I am as bullish as a person can be for bitcoin, ethereum and the crypto market as a whole for the next year or so.  I fully expect bitcoin and ethereum to perform extremely well.  I also believe that many altcoins will definitely out perform bitcoin and ethereum in terms of percentage of gains.  

But something that I have been thinking a lot about recently is that perhaps many coins will be "left out in the rain" so to speak during the next bull cycle. What does this mean?

Well this means that for all coins a new all time high is not guaranteed.  In fact, I think it is possible that many of those coins' market cap will find their way into the larger cap coins such as bitcoin and ethereum.  This would change the cryptocurrency market into a place where coins that are created just to make a profit, have no real use-case or need, or just aren't used will fade away.  I must admit, in many ways I do look forward to this day. 

I say this because one of the most common outside criticisms of the crypto space is that it is full of scams.  If you are well-versed in the crypto market, it is hard to deny that claim.  Even myself, a big crypto advocate cannot deny that there needs to be a lot of improvement in this area to give the space more legitimacy.

Now this is just a "What if" scenario, but in my opinion there is more than a 0% percent chance of this happening, so it is very important for all crypto investors to consider.  Especially if you invest heavily into altcoins.

As you have seen the last few weeks when the price of bitcoin has been surging.  When bitcoin is going up like this, most other coins lose value until bitcoin takes a break for a while.  

But the market is changing fast.  Corporations have begun to publicly come out revealing that they have heavily invested into bitcoin.  And just yesterday, the country Iran has come out saying that they will now use Bitcoin for imports, evading the USA sanctions.

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The adoption is happening, and it will only pick up in speed now.  But like I just said, this is different than before.  The money that will be coming into the market will not be the $100 from the average person.  But because it will be coming from companies, and possibly other countries; we are now talking hundreds of millions and billions of dollars being invested into bitcoin.  And it is bitcoin that they are almost always buying, and a little ethereum possibly as well.

So what I am saying is, what if this bull market is different?  What if bitcoin continues and continues to go up.  What would happen to the altcoins then?

In 2018 after bitcoin reached its peak and then dropped.  That is when the altcoin season had its peak time.  But what if that doesn't happen again in the future.  There is a possibly that the next "bear market" might not be as steep as the previous one.

Now like I said before, this is just a hypothetical thought piece that has been running through my mind.  And I do like investing into altcoins, and have done very well doing so.  In fact I don't even consider ethereum an altcoin.  In my mind bitcoin is 1A. and ethereum and 1B.

But there is a famous phrase I would like to finish this story off with, and it is often a phrase that is said by bitcoin maximalists so you can take it with a big grain of salt.

"Altcoins were made to steal your bitcoin."

Either way, if you are investing thousands of dollars like I am into this market, it is extremely important to consider all possible scenarios.

So what do you think will happen? Do you think that there definitely will be another altcoin season?  Is it possible most altcoins without a major purpose will drain into bitcoin and ethereum?

As always, thank you for reading!

 

 


johnwege
johnwege

Hello I'm John


johnwege
johnwege

Living day by day, stacking sats and trying to retire early. Check out my substack blog https://johnwege.substack.com/ Follow me on Twitter twitter.com/johnwege

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