What Cryptocurrency Should You Buy?

What are the Best Cryptocurrencies and Why?
Photo by Nick Chong

I will update this section shortly but I wanted to get it out in DRAFT ASAP due to popular demand (Soon I will explain why I’ve picked my individual picks). A couple of notes, I have not included DEFI project tokens or other general governance tokens in this list because my interest here is to pick WINNERS. What are WINNERS? These are coins that could, with the proper marketing and growth and development, actually become global currency. Why do I think that matters? Well, the greatest wealth transfer in history could take place inside one of these tokens (or one not yet developed) if it has superior technology, continues proper development/upgrades, offers complete security (biometric level tied to your physical being) and GREAT marketing… In this case, wealth will travel out of fiat currency and into some, presumably inflation controlled (by community governance), crypto currency. When that wealth transfers into something that has limited supply, being in first necessarily means next worldly wealth generation.

I personally feel that if Central Banks don’t issue their own digital currency fast enough, that one cryptocurrency may just win to become a global unit of value exchange. And if that actually happens, $30T-$40T will pour into it almost overnight. It will then become nearly impossible to manage by any one government. If you bought in before the tidal floods, you will generate generational wealth, If you miss the tidal wall, you could still create extraordinary returns, and if you miss the flood, it will be like moving $1 from here to there – where there offers far more utility than a paper dollar (still a win).

If Governments launch their own coins, soon, and issue regulations around crypto – everything in my list could suffer something close to death. So – for the early readers of this post – you invest now in something that may be binary: Generational wealth or complete loss of assets nearly overnight. And this is why Crypto investments are VERY RISKY. I DO NOT OFFER FINANCIAL ADVICE.

OK, so what will it take to be a winner: 1. Security (including quantum resilience and biometric level ties to individuals physical existence – this would eliminate all theft and physical loss of value from being a human condition). 2. Strong community governance + technical team/infrastructure/accountability. 3. Extreme transactional throughput. In the order of 100K transactions/sec and perhaps 10X more than that as a global currency. 4. Negligible transaction costs. 5. Data storage capacity/scalability (remember, most crypto stores every single transaction that ever happens, forever…When you are talking even just about every coffee everyone on the planet might buy for the next 100 years and then multiple in every other transaction in perpetuity, you get an idea of the data storage scale problem). 6. Smart Contract evolutionary upgradability (this deserves it’s on post – in the meantime, just imagine all the contracts that are ever signed in this world regarding some kind of value transfer, and then contemplate needing our cryptocurrency winner to replace nearly every single one of them with a technical solution). 7. Efficient to operate, and won’t overly draw huge amounts of energy to maintain. 8. MARKETING, which builds liquidity and utility. The winner will probably be the one with the best marketing team and a reasonably proficient tech backbone…

After reading the above criteria (which I penned in 3 minutes and would like to expand upon with more time), you will understand why simple governance tokens are absent from my list below (if you question that statement, you are right, but I don’t have the time to be thorough here). Also absent are all the DEFI coins which could become incredibly valuable (I own a handful). They will not become currency and therefor aren’t my primary investment thesis.

Finally, you will note that Bitcoin is very low on my list. Why? Well, it is old, not fit for purpose and technically inferior to its modern counterparts. Some say it will be a store of value, and perhaps that is true, but I doubt that use case. Some of these other cryptocurrencies not only can store your value but also enable you to profit from that value while you hold it safe and ready. When given the option of having this old thing (BTC) store your value or this other thing that suitably serves that purpose AND enables you to buy coffee in the morning AND be profiting every micro second just by virtue of you owning and engaging that coin as a part of that coins own infrastructure requirements or in the Financial space, why on earth would you own Bitcoin???

What are the Best Cryptocurrencies and Why?
Photo by Nick Chong

My investment thesis then is very clear. I want to own and trade around crypto that could be a global currency and that I can utilize to grow my wealth actively every single instant up until I spend any of it’s value. The list below hits that mark. I include Bitcoin way down there because there is a chance it will be upgraded in the future -and it has the best marketing of any contender.

Below, I have ranked my favorites by what I consider to be the proper relative weighting given their current chances of successfully meeting my investment thesis. Trading around any of these top coins, to me, cannot result in a long term loss unless: 1. A clear winner emerges and you should move your investment to the highest probability winner. 2. Government intervention changes the calculations substantially. I’ve also ranked each by potential and noted, in some cases, those cryptocurrency’s that are well established players – the gold standards of old.

Lastly, a word on Etherium. This is the most likely winner in the field. Its challenges are nearly all of it’s own making. It is slow to adapt and upgrade to the level of its peers – though it is actively trying to resolve this lethargy. This is Etherium’s race to lose. At the moment, BNB is the strongest alternative. Though no fewer than a dozen fantastic projects are in the race. Look back at my point 8 above – if any of these projects took some of their billions of dollars in value and launched a globally effective marketing campaign, they could probably win hands down. So, subscribe to their blogs and watch out for billboards and advertising.

Assets by percieved value – UtilityEstablishedPotentialWeighting
ETHXX10
BNBXX10
SOLX4
ADAXX4
DOTXX4
XRPXX3
HOTX2
EGLD X2
NEARX2
ICPX2
FTMX2
AVAXX2
TRXX2
ALGOX2
LTCXX2
THETAX2
XTZX2
VETX2
EOSX2
ZILX2
MATICX2
DASHXX2
QTUMX2
ZECX2
ONEX2
ZENX2
HNTX1
SCX1
BTCX1
UMAX1
LINKX1
ATOMX1
FILX1
KSMX1
WAVESX1
DOGEXX1
HIVEX0.5
XMRX0.5
XEMX0.5
IOSTX0.5
RENX0.5
LUNAX0.5
RUNEX0.5
WABI0.25
ICX0.25
RVNX0.25
ANKR0.25
CELR0.25
FTTX0.25
BAT0.25
IOTAX0.25
RSRX0.25
CELO0.25
ONT0.25
OMG0.25
NANOX0.25
DGB0.25
ZRX0.25
HBARX0.25
GRTX0.25
FIOX0.25
COTIX0.25
OGN0.25
KNCX0.25
CTSIX0.25
FETX0.25
VTHO0.25
WRX0.25
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