Should you buy bitcoin or bitcoin cash? Does tezos have further room to grow? Is monero a long-term hold? There are no absolute answers to these questions and no crystal ball to determine which crypto will pull a 5x before the year’s out. Based on fundamentals alone, however, here are some reasons why you might wish to buy or sell the top 20 cryptos by market cap.
Bull: The bull case for investing in bitcoin core is pretty straightforward: it’s the largest crypto by a country mile with the deepest liquidity, institutional exposure, futures products, and store of value characteristics. It’s also got a halving that’s less than three months away. When the cryptocurrency market kicks into high gear, it’s a safe bet that bitcoin will lead the charge.
Bear: Bitcoin may be the safest haven for crypto investors, but it’s had 11 years for price discovery to play out. With a lack of innovation to renew interest and no major partnerships to announce thanks to its decentralized design, there’s a risk that investors could get bored and seek out more exotic assets. Moreover, with Lightning Network still failing to deliver, in the event of onchain fees rising to 2017 levels, the Bitcoin network could become unusable, diminishing its market value.
Bull: Ethereum 2.0 is on course to launch within the next four months. If the upgrade passes without a hitch, interest in the smart contract network is likely to surge. Its ability to shrug off all competitors to date, from EOS to Cardano, also stand it in good stead for the next bull run. Throw in Ethereum’s network effects, large developer community, and diverse use cases, and there’s a strong case for investing in ETH.
Bear: Ethereum 2.0 carries serious systemic risks, and failure to launch could impact investor confidence. A major defi hack is another black swan event that could surface at any time. ETH’s loose monetary policy is also a reason why it may be less attractive as a long-term investment, despite the network’s undoubted utility.
Bull: Remember what ripple did in 2017, rocketing from a few cents to over $3 a token? When market mania returns, a repeat feat is not beyond the realms of possibility. Ripple (the company) is also very well connected, and should it secure a major partnership, such as with a tech or payment giant, expect XRP to moon.
Bear: Huge Ripple holdings of XRP, little enterprise usage, and the specter of a securities lawsuit still linger over the third largest crypto by market cap.
Bull: Low onchain fees, significant innovation (e.g. privacy, micro-blogging), merchant adoption, and an enthusiastic community all augur well for the future of BCH. It does all of the things that BTC does, but without the risk of fees spiraling overnight. Some investors see BCH as a hedge against BTC underperforming; if bitcoin core fees rocket, expect bitcoin cash to prosper.
Bear: Much of the roadmap for Bitcoin Cash is based around securing global adoption as a medium of exchange (MoE). Should merchants and consumers trend towards using stablecoins instead of volatile cryptos, BCH could falter. There are also some community disputes over matters such as developer funding to be resolved. While not critical, there is an outside chance that acrimony could lead to factions.
Bull: The machinations of BSV whales such as Calvin Ayre and Craig Wright, coupled with its limited liquidity which enables manipulation, means the Bitcoin fork could pump at any time. When it does, it’s likely to moon.
Bear: Holding a highly volatile crypto asset with limited adoption is a risky venture.
Bull: Litecoin often leads bitcoin in rallying, serving as the coal mine canary that presages a crypto market upturn.
Bear: As a generic MoE with little to distinguish it from BTC, a fundamental assessment of LTC identifies few attributes that qualify it as moon material.
Bull: EOS initially escaped the worst of this week’s market dump after its inflation rate was cut. The smart contract network has yet to deliver on its promises, but there remains wads of capital for EOS VC to award in grants, which could kick development up several notches. If EOS-powered social network Voice proves a success, there may also be an uptick in investment appeal.
Bear: The EOS network has been afflicted by degradation of service, while the wildly fluctuating cost of onchain resources such as vRAM can make dapps expensive to run at scale.