BTC Dominance can make you poorer

Good Morning,

Writing every day has become a bit tricky, so I've decided to start a premium membership for anyone ready to step up their crypto game. 

I'm planning to kick off this membership coming Friday.

Today, I want to show 2 mistakes you might make when investing in altcoins (and what are the solutions) and how Bitcoin dominance could make you poorer without you even knowing it.

Stay Up-to-Date

Save time on researching crypto:

💰Bitcoin

• Blackrock and Fidelity snagged 12,000 and 6,000 Bitcoin last week. Even with three months of ETF shenanigans, they're still buying up. GBTC is offloading, but hey, they can only do that once. When that's done, get ready for a wild FOMO rally that'll rocket Bitcoin to a cool 100K, and we can finally say sayonara to the laser eyes bit. (link)
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• With Bitcoin playing footsie with $70K, my feed's dead quiet, and bears can hardly keep it under $65K  (link)
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• "I don't even pay attention to politics anymore. I just find it all so wasteful and dysfunctional and stupid. The only thing that I really care about is sound money, Bitcoin” (video)
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• “We are in the #Bitcoin Gold Rush era. It started in January 2024 and will last until the end of 2034 when 99% of all Bitcoin will have been mined.”- Michael Saylor (video)
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• Bitcoin's Halving Predictions for April 2024 (link)

🚀 Altcoins

• Solana's network is currently slow due to too many transactions, mainly from meme coins. Fixes are being worked on, but users might face some delays for now. (link)

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• Binance Users Stake Record $13 Billion to Earn Saga Gaming Token Rewards (link)
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• Altcoins are super undervalued. (opinion) (link)

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📈 Trading

• Bitcoin next target is 82k (link)

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• BTC debrief with levels & ranges. (link)

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• JTO - Buying 30% dips on strong coins into support generally works out in a bull market. (link)
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• MYRO Support holding well(link)

Educational

Bitcoin Dominance can make you poorer without you even knowing it.

Here are 2 mistakes you might make when investing in altcoins and their solutions.

I've been messing around in the world of crypto for over 7 years now. 

Right now, I'm riding my 3rd bull market wave.

For 3 years, I've been working as an advisor to crypto projects.

Worked with some cool guys like Solana, DAO Maker and others...

After so long, I got a real feel for how this market beats and how the industry ticks (I'm gonna cover more about this in a future newsletter).

In 2020, just before my second crypto bull market, man, it felt so good to be alive... because that's when DeFi nartive just burst onto the scene.

And me?

I got all excited about this and went all in, invested all my Bitcoin in some fresh-off-the-ground projects.

I was super sure that the next bull market was gonna change the game, and Defi coins will be the next big thing.

And guess what? I was right.

I made a hefty amount of money in 2021.

But, plot twist: if I just held on to Bitcoin, I would've made even more!

Sure, Defi coins pumped in terms of dollars, but in terms of Bitcoin, they really took a nosedive.

Below, I'm gonna share 2 mistakes you could easily wind up making if you've been in the crypto game for less than 1 cycle.

But first..

Let’s see what is the Bitcoin Dominance and where to check it out.

(If you know what is Bitcoin Dominance you can skip this part)

Bitcoin dominance simply tells us what portion of the total cryptocurrency market value is contributed by Bitcoin.

Exemple: If the total value of all cryptocurrencies is 2 trillion and the value of Bitcoin alone is 1 trillion, then Bitcoin makes up 50% of the total cryptocurrency market.

Bellow is a chart with Bitcoin Dominance.

Right now Bitcoin Dominance is in an uptrend, at 54% dominance. 

You can monitor Bitcoin dominance on tradingview.com. After creating an account, just search for BTC.D, and click “Launch Chart” button.

Check the image below.

Now, let's see what the mistakes are:

1. You might believe that altcoins can make you more money than Bitcoin, so you start adding random altcoins to your bag

You might be thinking:

“How much bitcoin could rise from here? 3x, max 5x… Let’s buy an altcoin that can do 20x / 30x… “

This is the wrong mindset that can lead you to make wrong decisions.

Back in 2017, there were over 3000 diffrent altcoins, and the Bitcoin dominance dropped to 30%.

Rolling forward to 2024, there are more than 40.000 altcoins and the bitcoin dominance is over 54%.

What does this mean?

Well, there are now over 10 times more altcoins than there were in 2017, but Bitcoin is even more dominant. 

Think of altcoins as lottery tickets. In 2017, you had more than 10 times the chance of picking a winning altcoin than you do now. 

So right now, it's really tough to earn big from altcoins.

This is the hardest it's ever been.

Solution:

• Don’t buy altcoins because you heard from a youtube influnacer.

• First, check how is that coin doing against Bitcoin chart (I wrote about this here). It is in an uptrend? It is in a new and viral narative? etc..

• Instead of buying one altcoin, consider investing in a whole sector/narative. Choose the top coins from a particular narrative. For instance, select ten coins from the AI narrative or sector. However, do this only if they also have a promising appearance on the Bitcoin chart.

2. Don’t marry with a coin. Avoid getting caught up in the story, ideas or narative behind a specific coin.

Working in the crypto industry, I can assure you that founders and their teams are people just like you, and most of them don't have a clue about what they are doing.

Most of them aren't some kind of super-smart geniuses who've stumbled upon some mind-blowing tech...

They were just lucky that they started a crypto project at the right time, with the right narrative, that happened to go viral on social media.

Few of them are in this industry from a long time.

Those are the mastermind behind the scene.

They use marketing strategies to make you believe in their game changer project, so you buy and don’t sell.

If you don’t sell, the coin goes up.

This how insiders make money.

If I were playing nice, I'd suggest that these crypto projects are just experiments.

But let's cut the fluff, the truth is a lot harsher.

These crypto projects are just schemes to sap your cash, so that the insiders can accumulate as much Bitcoin as possible. 

They are eager to sell you a token, pulled out of nowhere and really worth nothing, so they can gather more Bitcoin and increase their wealth.

Solution:

• In the long term, 99% of altcoins don't perform better than Bitcoin.. Golden Rule: You don’t hold altcoins for long term. You use them only to make extra bucks to acumulate more bitcoin;

• “Don’t trust, verify” Don't buy into everything you hear in the crypto world. All the stories and hype around different crypto projects are just noise. Your main goal is to make money or bitcoin.

Bitcoin Dominance can make you poorer without you even knowing it.

If you're invested in altcoins and Bitcoin dominance is on the rise, you're losing money.

In the long run, Bitcoin dominance is visible not just in the altcoin market but everywhere.

Everything starts to get cheaper in terms of Bitcoin.

Five years ago, you could buy a house in the USA for 40 BTC (400.000$).

Now, that same house could be purchased for about 7 Bitcoins (500.000$).

Although the house price increased in terms of dollars, it became cheaper in terms of Bitcoin.

Bitcoin dominance is a reality, and everyday items, along with altcoins, will continue to get cheaper.

It's key to understand this basic fundamental principle in the crypto market.

I'll cover this in more detail in future newsletters.

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I hope that you enjoy this piece.

Writing every day has become a bit tricky, so I've decided to start a premium membership for anyone ready to step up their crypto game. 

I'm planning to kick off this membership coming Friday. Get ready!

Now, go and make your own research,

Mr GoBrr

Meme Of the Day

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.