I ask the question because I honestly don’t know. I don’t see an advantage to Bitcoin over another crypto other than Bitcoin was first. A friend asked a question, “Will Bitcoin be the MySpace of cryptocurrency?” Maybe.
We are seeing lots of them launch and grow in value. The speculative fever reminds me of the NASDAQ in 1998. Back then older people I knew said the move in stocks reminded them of the 20’s and if you do your history correctly you can always find a time when assets got overvalued. The most infamous might have been the Dutch tulip bulb mania back in the 17th century.
I don’t think the economic or business theories that have shaped what other assets are valued at will be any different with crypto. There are people I have heard that think this is totally new and defies previous laws of economics. Those laws are hard and fast and when there is illiquidity in the marketplace as there is now, violent when they decide to mete out justice.
I have watched Bitcoin trade to dizzying heights and there seems to be no utility value other than speculative. At the same time, you cannot short it other than not buying it and you can’t hedge it. There are no options markets with strike prices that allow you to manage the risk of holding it. Ethereum is the same way.
What are the principles you think will make a great cryptocurrency? We know they are more than just mediums of exchange, so what technical aspects must it have to derive value from the marketplace? How many cryptos can exist and actually be liquid mediums of exchange?