The Cryptos Outperforming Bitcoin
There are thousands of cryptocurrencies that have emerged since Bitcoin’s inception. Some have taken a leaf from Bitcoin. They aim to become a medium of exchange, a store of wealth and a unit of account. Essentially to act like money.
However there are other types of cryptos that are having larger percentage gains than Bitcoin. To be specific, these cryptocurrencies are called ‘cryptocurrencies’ but really they are a variety of cryptoassets.
Some cryptoassets are built to perform different functions that are different to Bitcoin. Really we can consider ‘crypto’ as an umbrella term for all the cryptoasset space.
They can be classified in 4 distinct categories as mentioned in the review of the book Cryptoassets;
- crypto commodities
- crypto tokens
- crypto collectables
There are differences between them. Some are outperforming Bitcoin partly because of the value they bring to the space.
Which Cryptos are Outperforming Bitcoin
Bitcoin’s percentage gain is at 56% over the last year. As you can see here there are many cryptocurrencies that have been outperforming Bitcoin.
Source CoinMarketCap as of 11th August 2021
Of course there is no guarantee that any of the cryptos will succeed in the long run. There are so many at this point that there are plenty of coins that are scams. However there are those that legitimately have a place in the space.
Dogecoin has had one of the highest percentage gains thanks to Elon Musk. Solana has also done very well. So long as a cryptoasset has certain criteria that are met there is no reason why it should not work out. Some criteria would include:
- A valid use case. Where there is more of likely chance if the assets is built in blue ocean. This strategy is detailed in one of our recommended wealth building books, Blue Ocean Strategy.
- An ethical team with vision
- Solid developers
More Established Crypto Projects
One project that is doing well for itself is Ethereum. It may not have had higher percentage gains on Bitcoin than a good chunk of other coins. However it still has a percentage gain of 336% over the course of a year. Which all considering is still significant, especially considering other asset classes like for example commodities.
Ethereum has so much going for it at the moment:
- DeFi. Find out what is DeFi
- NFTs. Find out what are NFTs
- The network is growing at a rapid rate
Ethereum is more of a crypto commodity. It is the basis for other projects that are built upon it. In our opinion there are so many resources allocated to Ethereum and investment that it is not going anywhere. Other projects would be more of a speculation. Speculative assets could make you money, but you have to be prepared to lose money.
Disclaimer: this article is based on research and opinion and is not meant to be financial advice. As your financial advisor if you are considering investing in cryptocurrency. We make money off some of the products or services recommended on this site.