Ben Simpson (YouTube) argues Bitcoin has outperformed the vast majority of altcoins and that most retail investors misunderstand altcoin risk. He cites several performance claims: Bitcoin has outperformed 95% of altcoins since 2014; altcoins have underperformed Bitcoin by 44% since the start of the year and are down more than 50% on average; most altcoins have underperformed Bitcoin over the last six years. From these observations he recommends keeping a large percentage of a portfolio in Bitcoin, using altcoins only when they outperform Bitcoin, and cutting losers to buy more Bitcoin.
Questions this video answers
Since 2014.
44%.
Down more than 50% on average.
Over the last six years.
Chapters
I've watched Bitcoin outperform 95% of altcoins since 2014. Here is what most crypto influencers don't want you to know. Everyone thinks altcoins are the fastest way to get to the dreamland. High risk, high reward, right? Absolutely wrong. Since the start of this year, altcoins have underperformed Bitcoin by 44%. That means it's down more than 50% on average. Let that sink in the safe asset. Bitcoin is actually crushing 95% of the altcoins that supposedly should have been outperforming bitcoin. Most altcoins have actually underperformed bitcoin over the last six years. And if I've learned one fundamental rule about investing in altcoins, it's this fundamentals of an altcoin trust speculation every day of the week. And this is not what influencers will tell you. They'll tell you to buy the latest coin that everyone is speaking about. But when the tide goes out and retailers are not interested in crypto, they are the ones that will go down 90%. This is the reality check no one talks about on social media. If your altcoin is driven off speculation and it's not outperforming bitcoin, then why are you holding the asset? It's about risk to reward. If you're taking all this risk to not outperform bitcoin, then your portfolio is going to be left behind. Don't take risks in altcoins that are not outperforming bitcoin. It always needs to come back to the performance against the main asset in crypto. And the trick is not to get emotional on your altcoins. You only want to buy altcoins to buy more bitcoin. That is my game plan. If it doesn't play out, if I have losers, I cut them, I sell it down, I buy more bitcoin and if it's not winning, you get out. Most people just collect crappy altcoins based on what they hear online, but the reality is we're here to grow our wealth. You buy altcoins, you buy bitcoin because you want to grow your wealth. That's what you want to look at, not the next hundred x altcoin. Right now there's only a select few altcoins that are actually outperforming bitcoin. While the rest of the market bleeds out, the reality is you must always have a large percentage of your portfolio in bitcoin. Select the right assets to outperform and get out of the rest. That's where you start to grow your portfolio.
