As a prolofic Alt Investor, This Is My Greatest Argument Against Alts.

If you check my history, you’ll rarely find a post from me that’s entirely pro-BTC. So please don’t assume that this is one. Why am I saying this? Because I cannot make my point without referring to BTC. And, while this may come across as pro-BTC, my actual goal is to argue against alternative cryptocurrencies (alts). If my criticism of alts seems to favor BTC, it’s simply because the weaknesses of alts highlight the relative strengths of BTC. And I cannot make my argument without it.

Now, let’s get into it: Alternative cryptocurrencies are a poor investment as long as BTC and fiat currencies exist—especially BTC.

Why?

1. Alts are tethered to BTC and fiat. Most altcoins are heavily influenced by the price of BTC. If BTC rises, many alts follow, and if BTC falls, alts usually fall even harder. For example, during the 2022 crypto crash, BTC’s drop wiped out not just a lot of its own market value crashing to about $15,000 from almost $70,000 but altcoin market as well. Now you might say everything crashed. Yes. But ALTs dropped more than BTC did. BTC dropped by 70-75%ish. Alts? 95% or more.

2. Alts track BTC’s volatility. If BTC takes a nosedive, altcoins typically experience an even steeper decline. This was evident in the 2018 bear market, where BTC dropped by 85%, but many alts, like Ethereum, lost over 90% of their value. Ethereum did nothing wrong. It is home to thousands of alts that still operate on it and the staging ground for many that moved to their own network later on. Yet, it suffered a crash not because it did anything wrong, but because it was pegged to BTC.

3. Dumping for fiat can tank alts. Let's say BTC crashes 10% causing a -10% in the price of your alt even if no one sells. Then when people start selling to fiat, it crashes further.

4. Many alts are centralized with a "CEO." Do you remember when the founder of Litecoin, Charlie Lee, sold off his entire LTC holdings, the market reacted negatively, sending the price into freefall, even though the project itself hadn’t changed. It was trading at almost $400 USD....400. FOUR HUNDRED. Today? sub-70 USD.

So, why bother investing in alts? I’m not saying you should put your money into BTC either, but BTC doesn’t suffer from the same vulnerabilities that altcoins do. If you believe in the ecosystem and think that certain altcoins solve real-world problems, then sure, invest in any alt that you want. But if you care about the price... So, it literally feels like the success of most alts depends on BTC’s performance and the faith of holders not to sell. While BTC only depends on the faith in people not to sell.

It is like fighting a war on two fronts with alts. Actually, more like 2+ whatever else that the alt garners, from public opinion, liquidity, etc.

So, if you are going to respond, please answer this question: Given the reasons I have given (and not given because I do not want to make this very long) on why alts suffer when it comes to price-action, why bother investing in alts at all?