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Economist Fred Krueger has taken a firm stance on the ongoing Bitcoin vs. altcoin debate, explaining why he believes Bitcoin is the only cryptocurrency worth holding for the long term.
In a recent statement, Krueger laid out a series of arguments highlighting the risks and challenges associated with altcoins while praising the stability and long-term potential of BTC.
Altcoins Are Losing Value Against Bitcoin Over Time
Krueger noted that historically, most altcoins have failed to maintain their value compared to Bitcoin. He cited Ethereum’s peak in 2017, noting that its value relative to Bitcoin has fallen significantly since then. He said the same is true for other coins like Litecoin, EOS, and almost every cryptocurrency released before 2020.
Surviving Bear Markets Requires Faith, According to Fred Krueger
Krueger emphasized the importance of “diamond hands” when investing in Bitcoin, or the ability to hold onto investments during downturns. He argued that altcoin holders are more likely to panic and sell during market declines, and that this can happen at any time. He says BTC has created stronger conviction among its investors.
Altcoins Are Going Out of Fashion
Comparing the cryptocurrency landscape to technological evolution, Krueger likened altcoins to outdated tech giants like AOL and Myspace. Bitcoin, he said, is immune to such obsolescence because it was created as the “perfect money” and remains so today.
Researching Altcoins Is a Full-Time Job
Krueger noted that hundreds of new altcoins are minted every day, and that constant research is required to properly evaluate them. For most investors, this is an unnecessary burden. He suggests that simplifying the investment strategy by focusing solely on Bitcoin would eliminate this time-consuming process.
Most Altcoins Are Scams
Krueger did not hold back in his criticism of the many altcoin projects he claimed were outright scams, citing infamous examples like “Safe Moon Coin,” “Bitconnect,” and “Celsius token” as cautionary tales for investors.
Regulatory Risks
Krueger also warned about potential regulatory risks facing altcoins, suggesting that the U.S. Securities and Exchange Commission (SEC) could classify certain altcoins as securities, which could send their prices plummeting or even force them out of circulation.
Altcoins Are Like Ponzi Schemes
According to Krueger, many altcoins operate like pyramid schemes, relying on new participants to maintain their value. When the flow of new investors stops, these schemes are likely to collapse.
Altcoins Are Extremely Complex
Krueger argued that altcoins often have overly complicated features for development teams, such as tokens, staking schemes, and airdrops, while BTC offers a much simpler investment approach without the need for these complex mechanisms.
Most Altcoins Have No Supply Cap
Finally, Krueger highlighted a critical difference between Bitcoin and most altcoins: the total supply. While BTC has a fixed supply of 21 million coins, many altcoins can issue tokens indefinitely, leading to inflationary pressures that Bitcoin avoids.
*This is not investment advice.