A recent cryptocurrency poll on Twitter reveals that the reason the overwhelming majority of people are buying altcoins is to make huge returns in the range of 10x to 100x. In other words, altcoin investors are more interested in the quick gains rather than the utility of the cryptocurrencies.
80 Percent Want “Mad Gainz”
Earlier in April, Cryptopotato reported that 47 percent of traders hold more than 60 percent of their portfolio in Altcoins. At the time, this seemed fairly reasonable, given that altcoins were temporarily blossoming.
While the April’s poll didn’t really reveal the reason for their involvement in the altcoin market, a more recent one does so perfectly.
Your reason for buying alts?
— Crypto₿ull (@CryptoBull) May 15, 2019
As seen from the results of more than 2,550 people, 80 percent of them are hoping to get huge returns from investing in altcoins in the range of 10x to 100x. Only 4 percent of them are actually interested in their usability, while 12 percent don’t invest in altcoins because they firmly believe in Bitcoin.
Interestingly enough, however, this is the very reason for which altcoins will be struggling this time, as opposed to the last parabolic market move we observed back in 2017, according to prominent investor and former Wall Street hedge fund manager Mike Novogratz.
Speaking on the matter, Novogratz said:
114 elements on the periodic table, maybe 118, only one is gold… has store of value just because. Copper brings value for its usage. So they have to prove use case. That means getting people in their communities, developers, and being worthy of something.
Bitcoin Remains King For Now
Meanwhile, Bitcoin remains the absolute king throughout the last impressive rally. Year-to-date, the cryptocurrency has managed to more than double in value while holding 57.6 percent of the entire market capitalization, according to CoinMarketCap.
But that’s not all. Historically, Bitcoin has outperformed all the major altcoins substantially. Back in March, $100 worth of investment in Bitcoin at the time of the first known price, would have returned $1,315,363. That was back when the price was almost two times lower.
Moreover, Bitcoin is also seeing increasingly growing utility, as major retailers across the board are beginning to accept or consider it as a means of payment.