Outperform Bitcoin? How many altcoins have to so while not dumping too hard in the Bear market? If there are any, there are very few
There is a time when majority of the altcoins will out perform Bitcoin and that phase is for a very short time and it is usually at the end of the bull cycle. We can track this through the Altcoin Season Index.
I know altcoins that pumped so hard in the previous cycle but may not a hit a new all-time high in this current cycle. All I am saying is trade smart and avoid being a bag holder of some shitcoins that may just dump on you and may never rise again. Most of them are just seasonal.
As per my experience, most of the altcoins that were in the previous cycle may not reach all time high again and the reason for this is that retail is holding those altcoins at high prices and there is too much selling pressure and it may need a lot of volume to get to those levels. However, the good altcoins that are launched in this season (within the previous 3 to 4 years) have a greater potential of breaking their all time highs.
They never outperformed Bitcoin, and they never will. You can artificially inflate the % return on any project by inducing a multi tiered strategy of manipulation:
1) Start with low MC.
2) Massive centralization of supply.
3) Collusion with market makers and VCs to drain the limited liquid supply from retail.
4) Pump with little resistance.
5) Sell at retail who later lose money.
Of course if you compare a small shitcoin to a $2 trillion dollar asset then the percentage return of the small shitcoin has a bigger chance of being better. That does not mean it is better in any way or that anything is guaranteed. If you believe otherwise you should go trade penny stocks. You will definitely become rich.
You can do this cherry picking with penny stocks and find stocks that outperform the best stocks like Apple. What good does this picking do for you? What does it prove? Nothing. The fact is if you drew an average of all altcoin performance and compared that to Bitcoin you would see extreme under performance. 1) Start with low MC.
2) Massive centralization of supply.
3) Collusion with market makers and VCs to drain the limited liquid supply from retail.
4) Pump with little resistance.
5) Sell at retail who later lose money.
Of course if you compare a small shitcoin to a $2 trillion dollar asset then the percentage return of the small shitcoin has a bigger chance of being better. That does not mean it is better in any way or that anything is guaranteed. If you believe otherwise you should go trade penny stocks. You will definitely become rich.
We call most altcoins pump and dump or dump and dump. It has a reason. See this latest pump and dump coin:
The tiniest percentage of altcoins do not have terrible price performance. Everything that is doing fine is just survivorship bias. For every 1 project that is doing good price wise there are thousands and thousands that went to the gutter.Not only that I will prefer bitcoin dominance, bitcoin is also not pump and dump or dump and dump. Bitcoin is an appreciative asset and a store of value, unlike altcoins.
Even the dominance metric is fake and the real dominance is more than 90%.