😱 Why Price Doesn't Matter And 'Cheap Cryptos' Are Bullshit

What's going on: Bitcoin is not only king of crypto land in terms of mainstream-attention it is getting, but it's also the most expensive (serious and legit) coin around. So a lot of people are intimidated by a price of around 14k $ and argue that they can't afford BTC, because it's too expensive to buy ONE and are therefore looking for cheaper coins. But here's the catch: The price-discussion is bullshit and the hunt for 'cheap coins' under 1 $ is too.

In fact, to assess a coin's growth potential you have to look at a couple of different indicators: What's the circulating supply? How high is the trade volume? And remember: Market Cap = Price X Circulating Supply. And most important: Is the coin just pump and dump, or is it something with a good team, a practical use-case, a real product and substantial technology? These are questions that matter far more than just looking if a coin is under 1 $ or above.

Why should I care: Sure, people with experience in crypto know better, but a lot of newbies think 'cheap' altcoins are a good start to invest in crypto (spoiler: they're not). And this misunderstanding is by the way one of the reasons why Dogecoin or Dentacoin exploded the last couple of days.

To fix this and to lower the psychological barrier for new investors, Bitcoin-developer Jimmy Song came up with an interesting idea: introduce smaller units of Bitcoin. He released a standards proposal where he explains how this could work. A one-millionth of a bitcoin would be about one cent at today's prices and would be called a "bit." To implement this idea, wallet providers, exchanges and other bitcoin businesses have to to support his proposal.

Source: twitter.com/boxmining/

I think that Song's proposal is an interesting idea to make Bitcoin more attractive for newbies. It will be even more needed in case BTC rises to new heights in the next couple of months. But we will have to wait and see if this happens and if Song's idea will be heard and implemented or not.

Source: coindesk.com, lists.linuxfoundation.org
GIF: giphy.com

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