Altcoins and Utility Tokens: Why I'm Bearish

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In this video, I discuss why it is unlikely that value will accrue over time to altcoins like utility tokens. This is because it is so easy to fork an existing utility token blockchain and run it at a lower cost-- until value of the network falls to the computational costs involved (electricity, hardware).

A store of value like Bitcoin is in a completely different category-- there is a strong incentive to hodl as much of it as possible (like real estate or gold).

Utility tokens are more like gas or inventories-- companies and households are incentivized to hold as little of them as possible, in order to not unnecessarily tie up capital and thus lower returns on capital.

Chuck E Cheese discontinues tokens:

Casino tokens:

Curren Bitcoin buyers are hodlers who are withdrawing their Bitcoin from the exchanges:

Not investment advice! Consult a financial advisor.

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#Bitcoin
#Cryptocurrency
#Altcoins

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[Bitcoin_University]

WARNING: There are a number of scammers who are using my image and channel name to try to connect with my viewers on WhatsApp and other platforms to scam them. Just so you know, I will never refer you to "my personal trader" or try to connect with you personally to sell you something. I am banning these scammers as quickly as they pop up, but if you could report them to YouTube, it would be very helpful. You can always recognize a scammer by clicking on the image and seeing how many videos he has. All of these guys have zero videos, while I have hundreds.

[chadho]

This blew my mind, one of these 25c chuck e cheese tokens would have been a 24x bagger when I was a kid!!!

[jordanc]

I really enjoy your content Matthew, but I still don't get your skepticism of trading altcoins. You don't pay your bills with tesla stocks, or bonds or equities don't you? If something has value, and there is profit to be made in trading it, why not trade it? I could certainly agree with not wanting to hold these tokens long term, during a bull market such as this they are sure to become overvalued and drop in price. Personally I'm taking the approach of trading these speculation currencies expecting them to outperform bitcoin in the short term, but the goal is to always move profits into bitcoin. I've 6x'd some tokens in less than 2 weeks, hard to see bitcoin making those moves. And in doing so am taking profits and gradually increasing my bitcoin holdings.

[FaridFakhouri]

Do you think that bitcoin started as a utility token then gained value over time,
Why not some alts can gain value the same way if they can fix some real world problems? Other than store of value of course. Thx
Great videos👍🏻

[empireknowledge]

Alt season has not even started yet. Look back at last highs 😂😂😂😂

[justinmajors]

Btc performance great in the bear market I lost 8k on a meme if I would have put that in btc I be up 2x in a bear market going into a bull market lesson learned

[Novaknet]

Is holding 1 btc indefinitely a better strategy than diversifying some of it into alts?? 🤔

[Smolnic]

A lot of alt coins have good growth, this is the future now. I believe its leaving penny stock status to real growth, but thats just me

[SGON]

Tbh the only thing Bitcoin painfully lacks is DeFi. If it had that, there would really be no need for alts.

[loudealmeida]

If you had bought $100 worth of AAVE when it opened at 50 cents in October, it would be worth just about 100k. Just saying.

[rdptll]

Your arguments are sweeping and yet cursory.

I think few altcoin holders would argue that bitcoin isn’t a fantastic new asset. There is a world of difference between Doge coin and Aave.

To be a bitcoin maximalist on one hand and then say deriving real useable value from crypto is a failing hope, is to be either immensely hypocritical or grossly disingenuous.

Do you really believe DeFi is a fad that will plummet into obscurity? Really? Decentralized finance is an amazing development and not only is it a great idea but it is actually in use.

Bitcoin maxis were obnoxious in 2017 but now they just sound purposefully obtuse (no offense).

[kirstencurrie]

Maximalist doesnt mean that you acknowledge btc to be the biggest crypto (everyone admits that). Maximalists believe that Bitcoin is the ONLY valuable coin.

[kingkang]

Appreciate your honest assessment and no pump n dump

Thats like asking a food store why hodl food, just buy them when u need to eat

[MickleXRP]

Right before an alt season 😂😂😂😂 great call lmaooo. The dude who bought bitcoin at 15 k. You obviously don’t understand crypto in the slightest. So many other you tubers nailed this. Btw when is xrp going to 0 lol????

[dowskivisionmagicaloracle]

At the risk of having produce thrown my way I'll dare suggest that ETH is just a glorified utility token ....

[carelessways]

Yes buy bitcoin but these altcoins are making me rich. But yes bitcoin will always be the best coin.

[lthoang]

I usually agree with this channel, but this is a deeply flawed comparison. The chucky cheese and casino token are more akin to the stable coins because they are pegged to the dollar. Their values do not change independently. That is why nobody hodl stable coins either.

[skatcat]

Mate 1:07 salary can't be done in bitcoin with how public it is. That will need to stay private though checking or perhaps an agreement with an exchange to keep salaries off the blockchain. Or even bigger idea use a somewhat stable alt that has private transactions.

[sjjohn]

I appreciate your perspective, but completely disagree. Altcoins are making me a ton of money in both long and short holds. Chainlink for a long term hold is up over 7000% in the last 3 years. I use fundamentals for long term holds and TA for swing trades and I can't take your position seriously knowing what I know about Altcoins and my experience in them. From my perspective, knowledge and experience, you're being naive and stubborn about your position refusing to admit you're wrong. Maybe you should stick to stocks since you're experience and knowledge is very limited in the crypto market.