Circle of Competence of Different Cryptocurrencies – Subject to Market RisksFebruary 5, 2019
The competence of each type of cryptocurrency in the market is dependent on different factors. The circle of competence is different for each token type. And when a new token is launched, everyone is talking like a genius.
Every company will defend its brand of token whether it be Bitcoin, Ethereum, Litecoin, or Altcoin. Despite the worse crashes, it is seen that the cryptocurrency industry is here to stay. And every cryptocurrency has its batch of the audience, and they tend to get a stunning amount of support from their investors most of the times. However, when in a bearish situation the crypto value collapses, the bulls stay with the crypto, and other investors look for alternative options.
There have been frustrating times for bitcoiners who have been around for a long time. The hype is down, and now those who are looking to make that quick buck know that it does not work that way and they are resorting to Altcoins. Investors are looking at the “next workable and affordable thing” for profit making and they are not truly ready to get disappointed by the “next big thing scheme.”
When investing in a cryptocurrency, it is important for investors to identify the circle of competence of a token and to operate within it.
Warren Buffet had previously remarked, “If we have strength, it is with recognizing if we are operating well within the circle of competence and if we are approaching the perimeter.”
Communicative competence is that which creates the impact in investors who are looking for reliable cryptocurrency information. TCAT token is based on the reliability of the news. The value of politics around this token is based on the trust factor offered by the coin. The investment goes towards sustaining the trust of the published news material.
Competence is the major attribute that investors look into when considering to invest in a new cryptocurrency. The impact that a token can create is also based on its competence.
Investors have had their share of the lesson, and they are learning a lot. They are not any more impressed by tech promises that will change the world; they want to see it happening. Investors are not ready to jump into hypes and promises.
The time is different, and the market is becoming heterogeneous. Just like there is a life for every budget, there is a token for every investor type. And there are profits to make in all tokens during volatility. Whether with smart contract crypto like Ethereum, Ethereum Classic; straightforward crypto like Bitcoin, Litecoin, Monero or Dash; and investing in each type of crypto is radically different. You can make money by investing in crypto – subject to market risks.