Given the recent market situation, many traditionalists are looking towards investments that yield high returns. Bitcoin is never far from this conversation; crypto embracement comes with the subsequent question: ‘Which coin to invest in?’.
Investor and Bitcoin promoter Mike Maloney in a recent podcast opined that investing in right and selected cryptocurrencies should be the main priority.
The above chart compares the dominance of BTC, ETH, and other altcoins. While BTC has a dominance of 64.5%, ETH has a dominance of 14.23% and all other altcoins together register a dominance of 27.3%.
Another aspect that comes into play while considering investing in Bitcoin is the ‘correlation’ factor; this includes BTC’s correlation with traditional stock assets as well as other altcoins. As witnessed in the recent market crash, BTC could not live up to its ‘safe-haven’ and ‘store-of-value’ narrative. However, notable crypto investors have opined that BTC’s claims cannot be pushed away based on its short-term movement. Maloney also noted that bitcoin was not big enough to provide the financial shelter that people need at the moment.
The above Bitcoin-Gold realized correlation data by skew shows that the correlation which was at 55.8% on March 13 dropped down to 25.3% on March 16 and has been on a rise since then. Similarly, Bitcoin-S&p500 realized correlation chart also shows the correlation to be on the rise.
Maloney further commented on bitcoin and gold and stated that BTC and GLD were ‘money’, while fiat was ‘currency’. He further stated that money, along with being a medium of exchange carried value, unlike currency. He added: Fiat currencies by their very design cannot store value over long periods of time it’s a pyramid scheme scam where they always have to create new currency.