How to choose between Bitcoin and altcoins has become a topic of interest for many investors. Regarding this choice, I believe it depends on the capital size and one's view on the future development of blockchain. Bitcoin has already completed its self-value manifestation in the market, similar to digital gold, and its properties as a store of value are increasingly recognized by traditional financial institutions. On the other hand, altcoins, especially infrastructure projects in areas like DeFi, RWA, and stablecoin payments, align more with my personal expectations for technological innovation and future application prospects.
Bitcoin's value achievement: the self-realization of 'digital gold'
Bitcoin was born after the 2008 financial crisis, and its decentralization and scarcity earned it the title of 'digital gold.' As more and more financial institutions participate, Bitcoin's value is gradually recognized by Wall Street, and it exhibits lower risk compared to altcoins in market fluctuations. For traditional reserves, Bitcoin is currently the most widely accepted cryptocurrency, and its market stability is also more favored by large-cap investors. The investment value of Bitcoin lies in its risk resistance characteristics and store of value function, making it a sound asset allocation choice. I do not think Bitcoin is a great investment target, but I believe it is a good choice for asset allocation.
Technological innovation of altcoins: The future potential of DeFi, RWA, and stablecoin payments
Compared to the value stability of Bitcoin, altcoins exhibit great potential for technological innovation. Many altcoin projects are not limited to the realm of currency but focus more on the scalability of blockchain technology and the expansion of practical application scenarios. Particularly in the fields of decentralized finance (DeFi), real-world asset (RWA) tokenization, and stablecoin payments, altcoin projects are paving the way for future financial infrastructure.
• DeFi (Decentralized Finance): The DeFi ecosystem is rapidly developing, providing various financial services, including lending, trading, and derivatives, through decentralized means. Compared to traditional finance, DeFi systems are characterized by transparency, openness, and no borders, offering users higher capital utilization efficiency.
• RWA: The rise of the RWA track is a disruptive innovation to the traditional asset market. Through blockchain technology, RWA has achieved the tokenization of real assets such as real estate, equity, and bonds, increasing asset liquidity and providing broader trading opportunities for traditional assets on the blockchain. I personally believe that RWA will fundamentally change the industry landscape.
• Stablecoin Payments: The rise of stablecoins has brought great convenience to blockchain payments, especially showing tremendous potential in cross-border payments and cross-platform payments. Stablecoins are linked to fiat currencies, reducing the impact of cryptocurrency market volatility on payments, which is a key step in promoting blockchain payment applications.
Overall, Bitcoin has achieved its self-value realization in the field of decentralized value storage. (I must say that some industry big shots want to change the richness of Bitcoin at the application level; why insist on carving ordinary things on a piece of exquisite jade?) I remain confident in emerging altcoins, especially in terms of technological breakthroughs and innovative applications. I believe that as blockchain technology continues to mature, areas such as DeFi, RWA, and stablecoin payments will usher in broader development opportunities.$BTC #ondo看15到28美金