Willy Woo article on Coindesk is a very interesting read
Conclusions
Bitcoin is really hard to beat with index funds, maybe unbeatable with the present state of altcoins we have. Not only do they underperform bitcoin by a significant amount, but as a combined basket their day-to-day volatility is higher.
I ask myself why we don’t parallel the stock market world, where indexes are very successful and my conclusion is that we are in a world of unvetted shitcoins.
His conclusion is the exact reason why his index simulations performed so poorly compared to bitcoin. He arbitrarily included the top 10 or 20 altcoins, without doing any vetting to keep obvious losing picks out of the indexes, like Paycoin, Auroracoin, Quark, Bytecoin, Worldcoin
The currency must have an underlying concept which ICONOMI estimates as viable in the long term.
^^^That's the reason why this eligibility factor for inclusion in iconomi.index is so important^^^
Part of my beef with their investor whitepaper is they picked a bull market (since Jan 2016) to demonstrate their glam results
Prior to 2016, the altcoin market was not mature enough for something like iconomi.index. The first 1.5 or 2 years of Willy Woo simulation was a time when complete scams or copy-paste shitcoins with hardly any team/community could pump up into the top 10 cryptos.
Those days are in the past. Nowadays, I count at least 8 projects in the top 20 which have millions $ in the bank for development. During the first 1/2 to 2/3 of Willy Woo's 3-year simulations, such altcoin projects did not yet exist.
Prior to 2016, the altcoin market was not mature enough for something like iconomi.index. The first 1.5 or 2 years of Willy Woo simulation was a time when complete scams or copy-paste shitcoins with hardly any team/community could pump up into the top 10 cryptos.
I totally agree here. There is still room for refining, but all together it seems that the market is mature enough for ICNX.
What remains unclear to me is how ICNX will handle temporary pumps from one of those mature coins.
Let's look at Monero, as the latest example:
Monero trading price was between 0.5$ and shy of 2$ from Jan 2015 till Aug 2016, and then it went up ~6x in one month. The main reason for that pump did not have much to do with breakthrough development, strong partnership or funding, but an announcement from few black markets that they will start accepting Monero as payment method, in addition to bitcoin.
What happened after the pump (until today) is steady price decline, which makes sense, since there is no real value (yet) for that 12-13$ price
How will ICNX address that? It will probably happen over and over again.
Also - how does Steem meet the index eligibility criteria for inclusion:
The currency must have an underlying concept which ICONOMI estimates as viable in the long term.
The steem power looks like a pyramid scheme to me and looking back at Steem as a project I don't really see it viable in the long run.
Can someone explain what is the reason for Steem to have 11% of ICNX?
