I would like to ask the community, what coins do you see in the future, in 5 years, in the TOP 10? I would come from the other end. What characteristics of coins do you see as promising, innovative for the future of digital assets? What qualities should they have?
Some anonymity already exists, and a stable exchange rate too. In what direction the crypto industry will move? Thank you
the characteristics seen are from the use case. Potential coins are projects with ever-increasing usage rates. I always monitor all altcoin developments and realize that a good coin is one that has above average users. call it ethereum, bnb, DOT, Bitcoin, and many more. All these coins have one thing in common which is that they have been adopted and have a very large number of users.
and the crypto industry is moving towards mass adoption. because the Dapps platform has great potential in the future. Existing companies today need a smart contract platform to connect their services to the blockchain. that's why the future of the crypto industry lies in the smart contract project.
Thanks for the answer. You have identified a certain marker for yourself, let's conditionally define it as - volume, quantity, weight, etc. as an indicator of the value of the product. Of course, from a trader's point of view, this is not a definition of the quality of an asset.
From an investor's also point of view, no.
Why?
For a trader, trading volume says two things. First of all, liquidity, that is, the level use of the asset by ordinary consumers and their eternal followers - speculators, traders, hedge funds, etc. And, accordingly, low spreads when trading. And that's all.
This does not mean that the asset will only grow, it means that the asset is accepted by the market as a liquid instrument.
For an investor, the use of an asset by the market is also an indicator of its liquidity, but does not speak at all about it prospects for the future.
You can take any highly liquid stocks, indices, etc. they are also in demand by the market, but this
does not talk about their value in the future.
Let's take two examples and see what is a value indicator?
There was a company like Polaroid that was very successful in its day. Produced for the whole world, photo equipment, film, as well as
the world's first Polaroid cameras with instant snapshot. A miracle and only for those times.
Its shares were doing well in the market, and most investors were very optimistic about its future prospects, neither which did not bode well. But new technologies, digital cameras, great competition, have done their job. Company filed for bankruptcy in 2008.
And let's take another example.
Gillette company. Has been producing razors and accessories for them for a long time. The company's shares are growing in the long term and still
so far investors are happy. Why?
The fact is that the specificity of the product plays a role here. Few people are ready to save on their shaving and experiment with a razor.
This is a very conservative market, since the safety of shaving, its good results are sufficient for the buyer to be loyal. That is, in this case, a value indicator, a great loyalty of the market!
What are the conclusions?
Large liquidity does not guarantee future prospects. It is enough to come to a new competitive product, and the asset may not withstand competition and simply depreciate. Because the product itself is no longer interesting to the market! This is the key!
And the second key is customer loyalty to the product! Will BTC and ETH buyers be loyal in the future? Rather, in a different way, why should they be loyal? Are these tools perfect?
Bitcoin is growing because it is interesting to the market. The market is too big and therefore the growth is very large. But soon the market will be saturated and we can see a lot of interesting things!
More advanced cryptocurrencies (low fees, fast transactions, etc.) will bite off most of the pie.
And accordingly, the water will decline and we will all see who swam naked ...
