Why Alt-Coins Are a Poor Investment Long Term

For some investors, diversifying their portfolio with alt-coins may seem like a smart move. After all, these coins tend to be much cheaper than Bitcoin, and therefore offer more potential for growth. However, in reality, alt-coins are a poor investment long term. Here’s why.

Name2017 Rank2022 Rank2017 Price2022 Price
BTC11$14,156.44$23,754.80(+68%)
XRP26(-4)$2.30$0.3746(-83%)
ETH32(+1)$756.73$1,591.84(+111%)
BCH430(-26)$2533.01$127.54(-94%)
ADA57(-2)$0.7197$0.5244(-27%)
LTC620(-14)$232.10$58.53(-74%)
IOTA756(-49)$3.55$0.3109(-91%)
XEM882(-74)$1.03$0.051(-95%)
DASH976(-67)$1,051.68$49.60(-95%)
XLM1026(-16)$0.3608$0.118(-66%)
XMR1128(-17)$349.03$149.34(-56%)
EOS1248(-36)$8.77$1.09 (-88%)
NEO1364(-51)$75.96$9.53(-87%)
QTUM14100(-86)$62.40$3.04(-95%)
BTG1599(-84)$261.72$18.10(-93%)
XVG16338(-322)$0.2226$0.0036(-98%)
TRX1716(+1)$0.04475$0.06699(50%)
NANO(XNO)18165(-147)$21.66$0.9182(-96%)
ETC1923(-4)$28$23.37(-17%)
BCC20DEAD$418.96$0.68(-99%)
Top 20 performance over the past 5 years (30 Dec 2017-21 Jul 2022)

While their price point and growth potential may be lucrative to a potential buyer, it is quite obvious that with VERY FEW exceptions, alt-coins will all trend to zero over the long term. There is money to be made short term, however what we have found is that ONLY A SMALL PERCENTAGE of people who are new to the space, successfully time the top. Instead, they are usually the ones who are left holding the bags of a quickly depreciating asset.

In conclusion, it is my belief that the vast majority of alt-coins will trend to zero over the long term for a variety of reasons. While there may be a few exceptions, I do not believe that any of the current top 20 alt-coins will maintain their value in 5 years. What are your thoughts? Let me know on Twitter!