As the bear market continues in 2019, it leaves the question to what coins will survive the long haul. There are vast amounts of coins to invest in, and many of them lead on human desires. The idea of investing in Cryptocurrency to the public is the ‘get rich quick’ scheme that everyone wants to join. Following the acceptance of a low-barrier of entry, the industry is filled with investors who make the wrong decisions. When looking at the possible age of Cryptocurrency, investors need to reconsider their valuation methods.
The lesson that should have been learned
Despite the dot-com bubble being almost two-decade olds (wow!), the lessons are forgotten. It should have advised many investors that some coins will fail and others will succeed. There will be clear as day factors that determine the age of a coin, it will depend on the investor to disregard their emotions. Overlooking business valuation Businesses will never change.
The issue during the tech bubble was investors stopped using methods of valuation and decided to use their emotions and capital to drive prices up. This caused massive spikes amongst initial public offerings (IPOS) which were based on ideas. These ideas had nothing else to show besides a “sheet of paper”. The issue with technological fields is the lack of knowledge in areas that are just important when running a business and this is where many coins will fail. As someone with experience with Investing and a Bachelors of Business, I decided to show my own personal perspective of how I go about investing. This is not financial advise but my own perspective when deciding where to put my money in.
It may not be as important to you, but when you are considering a company to invest in, you need to know what they are here to achieve. If they are a start-up with a very unclear mission statement this will show their level of expertise in business. As many have said in the past, and many continue to say; execution is everything. Business Missions will differentiate the coins that have a succinct business model. A company will have a mission as a backbone of the business to ensure everything they do follows through their mission. You do not want to work in a company that focuses on Client Integrity but then have them treat their clients as stock.
A companies vision will determine if you coin will survive the long-haul of Cryptocurrency. If their vision isn’t a clear and succinct statement; it will be left behind. A clear example of a brilliantly executed vision is Ripple’s utility of XRP to make money move like information. This is a very clear way of telling the scope of your Company, if it’s aiming for something within reach, I would not invest into them. Ripples use of XRP showcases a very long-term goal with many barriers they will have to face – this provides me an idea of how they will aim to operate and potentially able to trade based on News.
Social Media Presence
Social media presence in 2019 for businesses is just as crucial as their product offering. A new business without communication strategies will not succeed. Social media is a platform that allows businesses to address all stakeholders effectively and efficiently; providing them value at different points of interactions.
Hopefully, this has provided some insight into the level of thought we all should consider when investing long-term. This is my perspective on how I invest, and do not guarantee any profits and hope you all do your own research when investing.