I agree with you. Yes, the vast amount of "projects" are alt scams, but I agree that some are legit and may add true value. The problem here is that almost no-one alt-trading values them for their project's calculated economic worth. In other words just because something provides value does not mean its current price is justified. I've actually tried doing a calculation of value with UniSwap and Efinity. Both have a theoretical value that can be calculated, but there are so many factors in the mix that is almost impossible to calculate in practice.
With Bitcoin this dilemma is of course much easier, as its entire value is as a fundamental base layer store of wealth. The problem with the many "alt projects" that are not outright scams, is that there is a coin issued against the project which has its value ultimately tied to the success of the project it was issued for, (which in turn is extremely difficult to calculate). It is only a minute % of alt investors who would actually apply an economic valuation metric to an alt. Almost all simply look at "trading patterns", or base their decisions on ridiculous factors such as "the price is cheaper so I get more of them" or "it has a cool sounding name". Remember also that some protocols that are pillars of 3.0 may be widely adopted but essentially free. So don't be confused with functional use vs coin value on those either. Anyhow, good luck. Short term its all sentiment driven. Mark my words, you will learn an alt lesson in due course. (I am guessing this is your first time around in an alt cycle correct? If not, then ask yourself how many alts from the last cycle in 2018 are still around and talked about). Same thing will happen in 2025 as we look back on 2021... Wish you luck!
I held BTC and ETH during the 2018 cycle and then got back in ETH. I bought and held it on it's merits as a project until May this year. I'd say that worked out well. Back in on ETH. Added DOT and LRC.
Sure ALTS are overvalued. I've already alluded to that in an earlier post. You mention the dilemma and it being easier with Bitcoin, well taking profits along the way with ALTs makes the dilemma less of an issue.
You mention functionality use vs coin value. If you look at the 3 ALTs I mentioned, they have to varying degrees come up with solutions with regards to tying in coin value to functional use and more importantly introduced digital scarcity. As a bitcoin maxi you should be able understand how important that is.
Here is the thing regarding the retardedness of some of those involved in ALTs. A lot of people make a lot of money doing the things you mention. Sure it involves a huge element of luck, but why ignore this aspect of the market and leave money on the table? Why not stack the deck in your favour by also accounting for this?
Let's say 1 or 2 of the ALTs I mention pumped in a big way because of sentiment etc. Is that me getting lucky or me taking time to follow the project, look at developments, updates and eventually conclude the big announcements and releases would be made during what I perceived would be crypto bull market and that they would pump? Not all pumps are because of retards.. For every Shiba there is a Sol.
