Altcoins: Finding Value In A Sea Of Shitcoins

4년 전

I suppose it is best to start by saying that I am an old school Bitcoin guy. I remember the $1 Bitcoin, the $10 Bitcoin, the $100 Bitcoin, and the years between when it touched $1,000. Having witnessed the creation of cryptocurrency, it pains me to see ICO after ICO adding very little to the ecosystem other than muddying the waters. And those waters are already quite muddy. There seems to be a trend of adding one or more small features to what is basically a copy of Bitcoin, making a nice looking 1-page Bootstrap site, and uploading a whitepaper .pdf that might be read by 1% of the investors, launching an ICO and making millions. The multitude of ICO offerings and their associated marketing plans are starting to look like clickbait - "Better cryptocurrency because of this one simple trick! Governments hate it!"

The world of altcoins is mostly filled with shitcoins. CoinMarketCap.com, a site I have followed for years, currently lists 792 cryptocurrencies & 138 assets. Assets are digital tokens issued mostly on Ethereum, but also on Counterparty, NXT, Omni, Bitshares, and other blockchains. To the casual cryptocurrency enthusiast, this should strike you as pure madness. Do we really need 700+ cryptocurrencies, i.e. 700+ blockchains? Maybe one day we will, but for now the list is mostly filled with Bitcoin imitators, pump-and-dump scams, and even outright troll currencies. "Evil Coin" claims that "In Evil We Trust." Don't believe me? Check out the Evil Coin website. It is a dumpster fire the like the crypto it touts. There seems to be an endless stream of this drivel coming down the pipeline only to land on the already cluttered landscape of rotting shitcoins.

The atlcoin & ICO craze is perpetuated by the seemingly endless sums of money investors are willing to sail into the latest blockchain, hoping to find the next Ethereum in the rough. There now exists around $100B worth of value in the cryptocurrency space as a whole. What used to be dominated by Bitcoin, the first ever cryptocurrency now accounts for around 40% of the total market capitalization. How the mighty have fallen.

Until recently, the Ethereum crowd was cheering on "The flippening," but it never came. A few weeks ago, the value of Ethereum was skyrocketing whilst the value of Bitcoin was trading sideways or falling. Much of this can be attributed to investors using Bitcoin to buy Ethereum, and much can be attributed to Bitcoin's fractured leadership which has been unable to agree on a path to scale the original cryptocurrency. We are at the point where Team Segwit and Team Core are threatening to create 2 different currencies with a hard fork because... well, because we can't have nice things. Out of this Bitcoin scaling mess, Ethereum is the clear winner. Ethereum wasn't chosen from the list of 729 at random, Ethereum stands apart from the list of shitcoins because it actually does something useful. This is a novel idea in the altcoin world. Most altcoins do basically with Bitcoin does, but with something minor changed. Litecoin, one of the oldest altcoins, is essentially a copy of Bitcoin with faster blocks and a slightly different mining method. Basically a copy-paste. And you know what the market says? It says "Here, have a $2 Billion valuation." Ethereum is something totally different. This is a blockchain that is can handle token issuance and trade, execute smart contracts, and do some other stuff that I'll happily admit that I don't quite understand. Ethereum offers the chance to do things that you can't do with Bitcoin, and that makes it stand out in the sea of shitcoins. It is worth mentioning that Counterparty does some of the things that Ethereum does, such as token issuance, but as I understand it Ethereum does these things much more elegantly. I think Ethereum is overvalued at this stage, but I also think the hype train is so hype it could stay overvalued for a long time. You basically need it in your crypto-mix these days. Can't ignore it any longer. This brings me to the subject of StorJ.

StorJ is a token-based trustless cloud storage system that rewards the "farmers" for renting out their HD space to the network with StorJ tokens. The "farmers" earn StorJ tokens in proportion to the amount of hard drive space they are renting to the network. Users that wish to store data can purchase space from the farmers with StorJ tokens. Hopefully this kills Dropbox. Not that I particularly hate Dropbox, it's just that StorJ is a much better system for storing data: rent your internet neighbor's HD (And 2 other internet neighbor's HDs. The data is redundantly stored 3 times so it should always be online). Farmers get paid, and users buy storage more cheaply because StorJ cuts out the middle man. Poof, there goes a business. It's nothing to be mad about, it's progress. I digress. StorJ recently started a process to move it's token from Counterparty to Ethereum. The process was accompanied by an ICO, releasing more StorJ tokens into the wild and raising more capital. Unlike most of the ICOs you see today, StorJ actually does something. In fact, StorJ has been offering distributed, trustless file storage for a few years now. I met some of the StorJ principals 5 years ago, long before ICOs were a thing. The nerds behind this one have been dreaming of a Dropbox killer for a long time. When they initially launched the service, Ethereum wasn't a big thing yet, and Counterparty was all the rage if you wanted to issue a token. So a few years ago StorJ raised capital by selling their Counterparty asset, and then did it again this year, raising about $30M on the Ethereum blockchain, complete with a conversion plan so you can make your old Counterparty StorJ into Ethereum StorJ. Oh they also took a random $3 Million headshot cash injection under terms I don't understand earlier this year. But who is looking at financials? I find value in cryptocurrencies that can be useful to me personally, and StorJ fits the bill. In the interest full disclosure, I traded some of my Bitcoin for StorJ tokens when they did their Ethereum-based ICO a few months ago. Fuller disclosure, I only bought because I know the world is currently crypto-crazy and StorJ actually does something useful and is currently doing it, so the raw & savage crypto-lust that values Dash & Monero in the Billions of Dollars could easily value StorJ tokens in the $100's of Millions. It currently does something and promises to do more things later. I could even spend some of the tokens to store my endless amounts of 4k camera footage.

Another altcoin that stands above the rest is Namecoin. The original altcoin. Namecoin is a decentralized domain name system which is currently functioning, albeit little-used. That being said, it may become relevant in the future. Namecoin allows the registration of ".bit" domains and the network does the routing. No ICANN involved in the process. The valuation of the total Namecoin supply is around $35 Million as of this writing. Namecoin has no hype train, they have no marketing team and their ICO was done a few months after Bitcoin began by a bunch of cryptonerds tinkering around, assuming the whole thing wouldn't last very long but still doing it anyway because they can and because it's cool. Writing ICANN out of the equation is cool! While Namecoin is old school, you very rarely hear about it in the daily crypto-conversation. If there is something undervalued in this absolute insanity of a market, it may #46 sorted by market cap, Namecoin. 

One more thought on the absolute insanity of the market: There are now 30 cryptocurrencies valued at over $100 Million, and the top 8 are over $1 Billion. It is obvious that everyone wants to keep making billion dollar things, but how many similar billion dollar things can the market bear? Could Namecoin squeeze into one of those valuations, deserving or no? I think it's a great gamble.

What about this site and the STEEM cryptocurrency? Honestly, this is my first day here, my first post saying some things I wanted to get off my chest and onto the internet. I saw the multi-hundred million valuation of the STEEM token and with a heavy sigh started in on my research. To my surprise, I didn't find a shitcoin, I found a community. I'm not quite sure why this idea wouldn't work with Bitcoin, why we had to re-invent money AGAIN to change the dynamic in social media, but I plan on contributing to see what this is all about. My strategy if I make any STEEM from writing these articles is to save around 30% of it just in case this is the next Facebook & Twitter and convert most to Bitcoin, some to Namecoin, and some to Ether. With the Bitcoin blocks full and uncertainty surrounding when and how a fix will be applied, I think the best strategy today is to buy the market minus the shitcoins with at least a small % of your holdings. 

I'm old school Bitcoin and still a big believer, despite the current conflict, but I'm willing to take a look at STEEM and evaluate it on it's merits. I'm initially skeptical, but open to looking into it and using this platform to write my thoughts on crypto. It helps that I'm pissed off at Bitcoin right now. It's like my hot, cool girlfriend drank too much and started talking all kinds of smack at the party and is now passed out drunk. I'm not saying I'm going to cheat on her, I'm just saying that I'm starting to consider more options.  I'd really like us to get back together again like we used to be. It was all low fees, fast confirmations. You know, how love is supposed to be. 

I am considering doing an in depth destruction of every shitcoin out there. I'll start with Ripple and work my way down. Earn some STEEM and drop some knowledge. 


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I too am new to Steemit. I think it's okay, I love the concept, but I think other projects are doing social media in a different way. Steemit is mainly a blog and news kind of site generally more geared towards the crypto currency community.

I have much different views, but I'm curious as to what other post you've written.

Finally another person that goes against this FOMO crazyness, I will follow you as I think we have a really similar mindset.

Regarding StorJ, what is the difference with BURST? They seems quite similar...

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I'm not a "down to ride" StorJ guy at this point, more just saying it was one of the very few non-scam ICOs that I felt would make an instant profit and possibly have long term success. I have read only briefly about BURST, and agree it seems quite similar. I only included StorJ in the discussion because of my personal experience of both meeting the principals a long time ago & buying the token recently.

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Good to know it is a solid project as well.... as there are many competitors in the traditional cloud space, maybe the market is big enough for both of the :)

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What type of token would you create if you could create any token to solves a problem or serve a community?

Hey Bryan, good to see you blogging here. Off topic, but you should blog about your post black friday experiences; SWC, the chilling police raid, and living in central America would be a great read for more than just the small poker community here.

Any particular reason you prefer storj to its competitors? I own some because I participated in the ICO and can hold the coins on MyEtherWallet, but I preferred Siacoin in the small amount of research I did: more decentralized and better file storage rates for users. And there are others on the horizon like FileCoin (Naval Ravikant will be involved) and Burstcoin (which I know nothing about). I suppose there is room for many in the space, but it would still be nice to invest in the best one.

And if you like the decentralized file storage space, check out Golem, which is like the decentralized computing power version of it. Since you are an old school bitcoin guy who probably prefers PoW to PoS, the idea of renting out computing power should interest you.

As for steem, I generally advise people to just use the site and not buy up Steem or SBD. You'll make more posting here than you would on facebook, twitter, or medium, and you don't need to invest in it to build up a following. There are some annoyances about it: a lot of circle-jerking, absurd payouts for shit content and the like, but you can taylor your feed to your needs and get a lot out of posting here regardless.

Again, welcome to the site.

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Golem is a broken model out of the gate. I don't think businesses are going to be cool with having to buy GNT from some speculator at arbitrary prices, then spend arbitrary amounts of it (that can and will change from task to task) to get their work done -- and then, if they want to get more work done, buy that GNT back from the speculator again and pay him another arbitrary amount. It's a recipe for disaster when you get have to use company scrip and are forced to shop at the company store.

Gridcoin is the only actual blockchain-based project for distributed computing in production and paying people now for both CPU and GPU-based work on a variety of projects. Beyond the broken model, Golem is CPU-only, rendering-only until Clay at least, and god knows when that will be out.

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Hello and thanks for the welcome. I will consider bloging about the past, but at this stage I'm more concerned with blogging about the current & future state of cryptocurrency - it is simply too exciting for me and seems to present massive opportunity. To reiterate my thoughts on StorJ, I only bought some because I thought it would increase in value relative to Bitcoin within a short timeframe. While I do think the nerds behind the project are awesome, I don't understand the project enough to make strong long term predictions. Essentially I enjoy gambling, and StorJ seems like a +EV wager.

As for Steem, this place seems cool and I'm definitely intrigued. I like it as a format for spewing my cryptocurrency thoughts. I like the idea of getting paid for creating content people like.

As for Golem, I've done only cursory research. I may use this Steem account to drill down the highest market cap digital assets & cryptocurrencies and post my thoughts on each.

Hi, Nice content, I am new in steem as well, I am always promised to the community to bring good content always, here is some electricity saving tips, it may be useful to you or other miners.

https://steemit.com/crypto/@cryptopizza/how-to-save-electricity-costs-on-mining-cryptocurrency

awesome article.. i totally agree with you..
i think antshares is also a huge value carrier..

One great altcoin that is just getting started is called Crypto Mark. They are building a strong community and giving out coins for free! Look them up at http://crypto-mark.com/. Lots of potential.

Glad that I have found an altcoin in the sea of shitcoins out there! And that is SophiaTX that is now listed of being good altcoins to hodl. This project has a lot to offer like evolving business in terms of blockchain.
https://www.investinblockchain.com/altcoins-hodl-2020/