Bogdan Myshko pfp
Bogdan Myshko
@pimpbod9com
Which Crypto Assets Are Best for Investing? You've probably heard or seen many famous quotes about the benefits of investing over active trading. Here's one: "The stock market is a vehicle for moving money from the impatient to the patient." - Warren Buffett. And in fact, if you ask active traders if they can simply "beat" the growth of $BTC, the vast majority will answer no. So why doesn't everyone just buy Bitcoin? Of course, the point is that you and I often want higher returns. The problem is that in pursuit of them, we risk getting a lower return, due to proportionally increasing risks. This is what it means to "climb the risk-reward curve". But how do you find instruments that (in a favorable market phase for investing) have a potential return that is asymmetrically higher than the risk? Our small study answers this question as follows: you need to find "primary" assets.
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Bogdan Myshko pfp
Bogdan Myshko
@pimpbod9com
What are Primary Assets? Primary assets are those assets that are recognized by the market consciousness as pioneering projects in a given category. In more modern terms, these are assets that create some new "narrative". It is important to emphasize the importance of the concept of market consciousness right away. Market consciousness does not engage in digital archeology and does not really care that the first AMM was actually Bancor. From the point of view of market consciousness, the first AMM is Uniswap, because it is the first successful AMM. Beyond Uniswap, there are plenty of examples where it’s the pioneering projects that are recognized by the market that are firmly in the lead in their category in terms of market cap (the list goes on):
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Bogdan Myshko pfp
Bogdan Myshko
@pimpbod9com
Cryptocurrency in general – Bitcoin Smart contract platforms – Ethereum Memes – Dogecoin Decentralized lending – Aave Payments – Ripple Anonymous blockchains – Monero – leading the sector despite massive delistings from all liquid exchanges Tapalki – Notcoin Bitcoin scaling projects – Stacks Decentralized AI – Bittensor Layer 2 scaling solutions – Optimism, despite being significantly outperformed by its more recent competitor Arbitrum Liquid staking – Lido Oracles – Chainlink Wallets – Trust Wallet Cat memes – Popcat Play-2-Earn – Axie Infinity GambleFi – Rollbit DePIN – Filecoin
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Bogdan Myshko pfp
Bogdan Myshko
@pimpbod9com
This rule applies even to sectors such as stablecoins (the leader of which is still the oldest USDT) and the so-called pfp-NFTs, that is, NFTs that are suitable for avatars in social networks, the most expensive collection of which remains CryptoPunks. This also applies to projects without tokens. For example, if pump.fun and all its analogues now issue their tokens, then the pump.fun token will have a significantly higher valuation. And the fact that this fact is obvious is the main sign of its primacy. So, despite isolated exceptions, we can confidently state the fact that the cryptocurrency market has developed an extremely favorable environment for projects that, from the point of view of market consciousness, are pioneers creating one or another narrative.
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Bogdan Myshko pfp
Bogdan Myshko
@pimpbod9com
Why is this happening at all? The reason for this is probably Bitcoin itself, which, despite the fiercest competition from various sides, still retained the title of cryptocurrency No. 1. And as always, we can recall the famous words of Michael Saylor: “There is no second best”. Another, and most intelligible, explanation for this trend is that pioneers are much more difficult to “value”, that is, to find their fair value. What to start from? This is something new, and it is difficult to fit into comparative analysis. When we value a copy of something, even if it is better than the original, we constantly compare it with the cost of this original, and this creates a barrier to price discovery.
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