May 25, 2019 09:30 UTC
May 25, 2019 at 09:30 UTC
Jimmy Song Says Bitcoin is The Real Investment
The cryptocurrency market is quite bullish at the present movement having doubled up the market cap since the beginning of 2019. Bitcoin is trading at around $8,000, and the majority of the altcoins are in the green as well. As the crypto market has started to pick up the pace, the number of people interested in investing in the crypto space has started to gain momentum as well.
Jimmy Song, the famous Bitcoin developer has said that investing in multiple altcoins and expanding one’s crypto portfolio do not make much sense, as Bitcoin is the real investment. He says there is no point in investing in multiple altcoins, as it does not guarantee increased returns. Song says diversification strategy is only suited for traditional assets.
Song went onto explain that the diversification of investment is done to reduce the risk of permanent loss and reduce the negative effects of volatility. Thus the strategy is only helpful in the case of traditional stocks
“The reality of a cryptocurrency and related investments is in the code which, unfortunately, is very dense, hard to read and impossible to understand for a large number of people.”
Jimmy Song emphasized that unlike traditional assets, the potential of a crypto asset depends on its usability and the technical aspects of it like the programming language it has been written in, the dense web of codes behind the network. Most of the people investing in crypto assets only take the face value of the token, the fancy content of the white paper, and not the real potential of the token.
This is the reason many Ponzi schemes like Onecoin has been able to rob investors of their investment. Song says,
“an abundance of marketing material about various cryptocurrency projects and marketing strategies for cryptocurrencies involves writing fancy white papers that purport to show the details of the actual system, but are not rigorously defined like the code is.”
Jimmy Song is specifically stressing at the importance of the development on a network, rather than how well an altcoin is promoted. However, that does not mean people haven’t made a profit with their investment into the altcoins, as many altcoins project like Ethereum and Litecoin has been in the space for quite some time now.