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DonahuePapa's avatar

In the interest of full disclosure, I have a significant cryptocurrency portfolio but $BTC has never been part of it, for multiple reasons. I haven’t read your other articles on this subject but I would expect that if we changed the word Bitcoin to cryptocurrency that we would have significant common ground.

I don’t play in meme coins and I’m not equating $BTC to a meme coin but it isn’t tokenized gold or tokenized anything. Its sole utility is to provide a means to transfer value, unlike coins that actually have utility and solve real world issues and can also transfer value.

The anonymity of $BTC value transfers has made it a favorite coin of illegal arms dealers, drug dealers and other criminals. I don’t know if they represent >1% of $BTC owners of a higher percentage but that was always a red flag for me.

The lack of scalability, high cost of mining and slow transfer speeds, are other reasons that I see $BTC as a dinosaur in the cryptocurrency world.

Also when looking at ROI, even if $BTC rose to $250K per coin (which seems highly unlikely) that would be a 250% ROI. JP Morgan’s preferred coin $XCN could easily hit that ROI on any given day and is likely to have an ROI of 1,000% or more as soon as the banking networks interconnect.

Ripple has been in the news a lot lately, establishing contracts with banks and institutions. The SEC lawsuit is all but dead and as soon as regulatory clarity comes from the USA (later this year) the sky is the limit on ROI as those banking and institutional connections go online.

The President of the USA has floated the idea of eliminating capital gains taxes on crypto profits from US based coins. Since $BTC is not a US based coin you will likely still face a 30% federal tax on your profits (if you have any).

So, with that background information, my question is, “Given the current cryptocurrency landscape, what would make you choose $BTC over another coin?” Clearly I have a preference for coins that have an inherent utility but I’m not looking to debate which is better. I’m hoping you are willing to explain why you hold a different opinion.

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