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Love, patience and a little crypto

Cryptocurrency: all you need is… dog?

The Beatles sang “All you need is LOVE”. Guns & Roses said “You just need a little patience”.

For those who have maintained their love of crypto, and all it stands for (libertarianism, peaceful anarchy, anonymity, cyberpunk, freedom), you may now receive your just rewards.

For those who have practised patience with their crypto portfolio, you also have received your reward. Springtime

We are officially through the winter season of cryptocurrency, and the first buds of spring are shooting forth with renewed gusto. If you have been in crypto for a few years, you will know that there is a winter every year; however, it can be unpredictable. The crypto winter does not always arrive in the same month, nor does it end in the same month.

The best crypto analysts cannot pinpoint the winter arrival until it arrives, and none can tell when it will end, until after it has ended. All we must do is be faithful, continuing to practice love and patience.

During the crypto-frost of early 2019, crypto prices went south for the winter, and stayed down a long time. The Bostoncoin puppies mostly sat and stayed, remembering the “HODL” philosophy. Occasionally we re-examined whitepapers to remind ourselves why we got into some of these projects in the first place.

Some people got into crypto purely to make money. These speculators probably dived in when prices were heating up, and then retreated with their tails between their legs when the prices went down. It’s possible to make 300% or more in crypto during good times; it’s also possible to lose 75% or even 100% during bad times… especially if you don’t invest into quality and merely chase trends.

It was all well and good to invest into some ambitious projects in the sunny days of summer, but did we keep faith in them when they lay down in the shade?

As we used the “C.O.I.N.” process for fundamental analysis, we were still safe from scams and irrational exuberance. Although crypto prices went down for months, no projects disappeared, and the essential principles were still present. We still believe in the projects and their aims, and when fundamentals are present, eventually, sensibility will return to the market. This month, we even found some new projects which had promising fundamentals, and bonus: we even managed to buy in before the big rush.

The question is, how do you best seek long-term quality, not short-term trends?

Crypto is supposed to solve problems

Paradoxically, if you get into crypto just to make money, you will often lose money. If you actually want to make money, you must remember that crypto projects are not just for making money.

The original idea for bitcoin was not to buy overpriced pizza or make Satoshi a billionaire. The idea of bitcoin was to solve an existing problem of centralisation. The central banks were gambling with the peoples’ money, and when the central banks lost trillions during the GFC, ordinary people lost fortunes and then had to bail out the criminal banksters.

Bitcoin was an anarchical and libertarian idea: create a monetary system which is truly for the people; a monetary system which the governments and central banks cannot control, deflate, waste or devalue.

For a decade now, bitcoin has fluctuated wildly in price, but has still maintained its original value as a libertarian unit of wealth. If you trust in the value, you will not be caught up in the price.

Some of our favourite projects still add value, no matter what the market thinks of the price. These include

  • BinanceCoin, which makes investing and trading more cost-effective

  • PowerLedger, bringing affordable sustainable power to everyone

  • BAT, paying people for viewing ads that would otherwise be annoying

  • FireLotto, bringing tax-free gambling to all nations

and the new-comer, which we picked up almost a month before any of the major players, ChainLink (LINK). ChainLink is solving a huge problem with the major cryptocurrencies: interoperability.

ChainLink is officially “blockchain agnostic”.

Serious crypto enthusiasts know that there are operating systems behind the prices and fluctuating lines on a screen. Bitcoin runs on its own blockchain, which is only used for bitcoin (BTC) and its derivative, satoshis (or ‘sats’). Ethereum runs on its own blockchain, which is only used for Ethereum (ETH), smart contracts and Ethereum gas. DAG runs on a Decentralised Acyclic Graph, and so it goes on. It’s as if there are 20+ car manufacturers and they all have their own roads, on which nobody else can drive.

If you have more than 3-4 crypto holdings, it’s likely you will have several wallets, as you cannot store your BTC in an ETH wallet, and you cannot transfer DAG on a BTC network. ChainLink worked on the problem, and came up with a way for the separate blockchains to speak to one another.

We purchased LINK as we thought it would be a good long-term play, and an essential tool for crypto longevity. We did not expect it to go up 200% in a month, but it has. Shortly after we bought LINK, it was discovered by Google, who signed a contract with the team behind the revolutionary technology. When the Google news was announced, the price rose immediately by around 200%, and as of today, it is still rising. BostonCoin may be controversial, but it’s clever

It is becoming increasingly apparent that the crypto space started off crowded with thousands of projects, and there will only be a handful of winners over the next five to ten years. This may be likened to the “motor vehicle wars” of the early 20th century. History may not repeat, but it definitely echoes.

In the early 1900’s, there were over 2000 vehicle manufacturers, over 1500 in the USA alone. A few decades later, there were only 39 brands, with 30 of them controlled by just nine major players.

Ford bought Volvo and Jaguar, General Motors Holden picked up Fiat, Subaru, Ferrari, Lancier, Maserati and Saab. Volkswagon bought Audi, Bentley and Lamborghini. Hundreds of other brands were either eaten by larger competitors or driven (sorry) out of business.

Some lucky investors made large profits when their favourite company cannibalised the smaller manufacturers. Some unlucky investors lost fortunes when their favourite companies went downhill. The astute investors made bank by investing into something which every car needed: roads and oil.

Regardless of whether the future will be solely a BTC economy (unlikely), a mix of BTC and ETH and another major player (likely), or an economy ruled by 5-6 major cryptos (also likely), there is one thing which is practically guaranteed.

Whichever coins or blockchains rule the world in 2020 and beyond, they will all require infrastructure. BostonCoin owns the cars and the roads