As a cryptocurrency investor, it is quite common for them to invest in different virtual currencies. The reason behind this is to minimize the risk considering the price fluctuation in the market. Recently, Bitcoin and Ethereum were considered by the US Securities and Exchange Commission as commodities.
So which altcoin should you invest in other than Ethereum? It is true that there are more than a thousand other cryptocurrencies aside from Bitcoin and Ethereum. And in reality, there is a chance that investors could take advantage of altcoins to generate profits.
If you will ask Multicoin Capital co-founder Kyle Samani, he said that his company is sticking with EOS but they see a bearish future on both Litecoin and on Ripple.
He said that “for now, we are holding our position, we haven’t sold any. The EOS launch did not go as smoothly as we were hoping it would. All things considered, actually it hasn’t gone as badly as I think people say…I concur that it wasn’t as good as it should have been given the resources they had, so they made some mistakes, and slipped up. But on a long-term time horizon those are rounding errors, they don’t really matter”.
Negative News on EOS
It is true that EOS was able to come up with $4 billion to launch the cryptocurrency. Unfortunately, it has experienced many problems including bugs that could play a major role in the cryptocurrency’s security. EOS even hired Dutch ethical hacker Guido Vranken who found vulnerabilities within the EOS network that allowed him to earn $120,000 in just one week.
And EOS isn’t the only altcoin that had its bad share of bad press. There was an investor who claims that he lost money buying and selling XRP saying that Ripple has violated the state and federal securities laws. And this case could potentially settle the question whether or not XRP is a security or not.
Ethereum is a Good Choice?
Samani likened EOS to Ethereum. He said that “People seem to forget, but Ethereum in its early days back in 2015 when the blockchain launched, it launched with no tooling, no infrastructure at all. People were really trying to beat this thing into the ground, and the system was pretty just challenging to use for quite some time. EOS was better than that”.
He even added that “If you told me to pick one token today and come back in 10 years, I’d pick Ethereum”.
Negative View on Litecoin and Ripple
However, Samani has a negative sentiment regarding Litecoin. He said that “Litecoin in my view has no reason to exist. It was a fork of Bitcoin. It’s just been sitting around. The only investment thesis I’ve ever heard for Litecoin is it’s testnet for Bitcoin, but that’s not an investment thesis”.
Litecoin is having trouble lately. It even announced the cancellation of the implementation of a credit card-like payment processing service called LitePay.
Samani also suggests that Ripple is a security. He said that “we don’t know when the news is going to drop, but the catalysts seem to have kind of gone away from Ripple…My point is, if Ripple is labeled a security by the SEC, all of the crypto exchanges are going to stop trading Ripple”.