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.
| Name | 2017 Rank | 2022 Rank | 2017 Price | 2022 Price |
|---|---|---|---|---|
| BTC | 1 | 1 | $14,156.44 | $23,754.80(+68%) |
| XRP | 2 | 6(-4) | $2.30 | $0.3746(-83%) |
| ETH | 3 | 2(+1) | $756.73 | $1,591.84(+111%) |
| BCH | 4 | 30(-26) | $2533.01 | $127.54(-94%) |
| ADA | 5 | 7(-2) | $0.7197 | $0.5244(-27%) |
| LTC | 6 | 20(-14) | $232.10 | $58.53(-74%) |
| IOTA | 7 | 56(-49) | $3.55 | $0.3109(-91%) |
| XEM | 8 | 82(-74) | $1.03 | $0.051(-95%) |
| DASH | 9 | 76(-67) | $1,051.68 | $49.60(-95%) |
| XLM | 10 | 26(-16) | $0.3608 | $0.118(-66%) |
| XMR | 11 | 28(-17) | $349.03 | $149.34(-56%) |
| EOS | 12 | 48(-36) | $8.77 | $1.09 (-88%) |
| NEO | 13 | 64(-51) | $75.96 | $9.53(-87%) |
| QTUM | 14 | 100(-86) | $62.40 | $3.04(-95%) |
| BTG | 15 | 99(-84) | $261.72 | $18.10(-93%) |
| XVG | 16 | 338(-322) | $0.2226 | $0.0036(-98%) |
| TRX | 17 | 16(+1) | $0.04475 | $0.06699(50%) |
| NANO(XNO) | 18 | 165(-147) | $21.66 | $0.9182(-96%) |
| ETC | 19 | 23(-4) | $28 | $23.37(-17%) |
| BCC | 20 | DEAD | $418.96 | $0.68(-99%) |
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!
