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The Bull and Bear Case for Investing in the Top 20 Cryptocurrencies

Should you buy bitcoin or bitcoin cash? Does tezos have further room to grow? Is monero a long-term hold? There are no absolute answers to these questions and no crystal ball to determine which crypto will pull a 5x before the year’s out. Based on fundamentals alone, however, here are some reasons why you might wish to buy or sell the top 20 cryptos by market cap.

The Bull and Bear Case for Investing in the Top 20 Cryptocurrencies
Bull and Bear Case

Bitcoin


Bull: The bull case for investing in bitcoin core is pretty straightforward: it’s the largest crypto by a country mile with the deepest liquidity, institutional exposure, futures products, and store of value characteristics. It’s also got a halving that’s less than three months away. When the cryptocurrency market kicks into high gear, it’s a safe bet that bitcoin will lead the charge.


Bear: Bitcoin may be the safest haven for crypto investors, but it’s had 11 years for price discovery to play out. With a lack of innovation to renew interest and no major partnerships to announce thanks to its decentralized design, there’s a risk that investors could get bored and seek out more exotic assets. Moreover, with Lightning Network still failing to deliver, in the event of onchain fees rising to 2017 levels, the Bitcoin network could become unusable, diminishing its market value.


Ethereum


Bull: Ethereum 2.0 is on course to launch within the next four months. If the upgrade passes without a hitch, interest in the smart contract network is likely to surge. Its ability to shrug off all competitors to date, from EOS to Cardano, also stand it in good stead for the next bull run. Throw in Ethereum’s network effects, large developer community, and diverse use cases, and there’s a strong case for investing in ETH.


Bear: Ethereum 2.0 carries serious systemic risks, and failure to launch could impact investor confidence. A major defi hack is another black swan event that could surface at any time. ETH’s loose monetary policy is also a reason why it may be less attractive as a long-term investment, despite the network’s undoubted utility.


Lawsuit Against Ripple May Decide the Fate of XRP but Regulators Have the Final Say


XRP


Bull: Remember what ripple did in 2017, rocketing from a few cents to over $3 a token? When market mania returns, a repeat feat is not beyond the realms of possibility. Ripple (the company) is also very well connected, and should it secure a major partnership, such as with a tech or payment giant, expect XRP to moon.


Bear: Huge Ripple holdings of XRP, little enterprise usage, and the specter of a securities lawsuit still linger over the third largest crypto by market cap.


Bitcoin Cash


Bull: Low onchain fees, significant innovation (e.g. privacy, micro-blogging), merchant adoption, and an enthusiastic community all augur well for the future of BCH. It does all of the things that BTC does, but without the risk of fees spiraling overnight. Some investors see BCH as a hedge against BTC underperforming; if bitcoin core fees rocket, expect bitcoin cash to prosper. Read More...

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