With Bitcoin over $40,000, many altcoin promoters will want to take their Bitcoins
Sylvain Saurel, author of the Bitcoin We Trust blog, recently published an article demonstrating some strategies that encourage investment in altcoins to convince people to take money from Bitcoin to other currencies.
For him, these are dangerous strategies, after all, they can end up convincing people to take money from an asset that demonstrates strength and put on less secure bets.
With Bitcoin showing constant strength in the last months, many are believing in the possibility of an altseason, that is, a moment in which the money will flow from Bitcoin to the smaller cryptomens. With this, many altcoins would reach new price records, as it happened during 2017.
While Saurel is a declared Bitcoin maximalist, many of his arguments bring interesting points, which can be used even by ill-intentioned people to attract beginning investors in less consolidated projects.
Beware of the strategies altcoins use to steal your Bitcoin
With the article entitled „5 misleading strategies altcoiners use to steal their Bitcoin“, Saurel warned about the different stories told by altcoin promoters to attract new investors who sought to profit from Bitcoin.
„Some people, altcoiners, without mentioning them, are trying to use the current situation to sell a story. These altcoiners will tell you that Altseason is about to start. They will use as an example what happened before when they said that when Bitcoin broke records in 2017, an altseason followed the market, with money leaving the BTC and going into other currencies“.
Bitcoin is outdated
Among the arguments used by altcoins, Sylvain highlighted that many say that „Bitcoin technology is outdated.
For the author, one of the main arguments of these people is how the technology of Bitcoin is very old and that the alternative currencies have much more advances, scalability and resources.
„Bitcoin technology is evolving at the pace necessary to guarantee the security of hundreds of billions of dollars that users have put on the net to protect themselves from monetary inflation and censorship. Any small bug introduced to the code could cost billions of dollars and end the Bitcoin revolution“.
He also argued that Bitcoin’s technology does not have as many resources as other cryptomites, but that’s because the digital asset tries to keep as much as it can, especially the power directly delegated to the community.
„All the Altcoins who claim to have better technology do so at the cost of centralizing their network. What is the advantage of performing 100, 200 or 500 transactions per second in a centralized system with misleading monetary attributes? There is no advantage. In the long run, only Bitcoin matters“.
„Bitcoin is not decentralized because of the miners in China“.
Another point that the author pointed out as one of the main arguments used by altcoiners to criticize Bitcoin is that the currency is centralized because it depends on mining in China.
Recently, even the Bitcoin code reviewer used this argument to say that currency was a disaster.
„Bitcoin is the only completely decentralized system. No altcoin can overcome Bitcoin in this regard. However, you will often hear altcoiners saying that Bitcoin is centralized because the Hash Rate depends a lot on Chinese miners“.
According to the article, this criticism has no credibility and are also false accusations.
Even if most of the computing power is in China, it is something that has never had an impact on the security of the Bitcoin network, besides being something that can be easily counterbalanced in the future, with miners from other places in the world putting machines to mine outside China.
Although correct, this is not such a simple solution, but the network has to be balanced to avoid this kind of hash rate monopoly.
„Bitcoin is a decentralized blockchain. Nothing prevents other miners from entering the network to balance the weight of a country that would become very important. It’s quite simple.“
Myth of diversification
Another interesting highlight from Sylvain about what is said by altcoiners is the strategy of saying that buying altcoins is important for diversification and protection against falls.
This means that buying altcoins, in case Bitcoin falls, you don’t lose everything, since you have money allocated in other cryptoactives.
„Diversification with altcoins is just an illusion, because they depend on Bitcoin’s success.