Hello All,
Before I start diving into each coin that I am invested in I would like to highlight the Asset Classes, I am finding that most people I speak to ask about "Bitcoin". What is it? What will it do? Is it a Currency/Investment/Store of Value/Asset/Etc and people only want to jump into Bitcoin.....but people are unaware of the size and scale of this developing world.
Bitcoin was the original creation based on the fundamental desire to move to a peer to peer currency network removing the need for 3rd parties and creating a system of trust, the 9 page whitepaper explained the principles and the underlying blockchain that would be used to support this, since then Ethereum was created to support "Smart Contracts" and from there it's exploded into all the Alt-Coins and business that are now creating blockchain and cryptocurrency solutions.
So the breakdown of the Asset classes is like this, use as you see fit but should be weighted against you portfolio:
Currency -"Decentralized currencies operate as money and stores of value. They are globally accessible, and controlled by
no single entity or group."
General Purpose- "General purpose decentralized compute platforms operate as a global computer, capable of executing arbitrary code called smart contracts or 'dapps' - in a decentralized and unstoppable manner"
Distributed Storage- Distributed storage assets create a market for storage space distributed globally across participating computers.
Distributed Computation - "Distributed computation assets create a market for CPU/GPU power distributed globally across participating computers."
Privacy - "Privacy-focused decentralized currencies incorporate technology designed make it difficult or impossible for 3rd parties to track the flow of coins from one transactor to the next."
Onchain Governance - "Onchain Governance assets incorporate the ability for various stakeholders to directly signal or vote for certain outcomes with respect to development of the protocol/asset itself."
Prediction Markets - Decentralized prediction markets use onchain-assets to create economic incentives to correctly predict the outcome of events.
Internet of Things - Internet-of-Things assets incentivize participation in IOT networks.
Application Development Application development platforms create use onchain tokens to incentivize development of blockchain-based tools.
Identity- Decentralized identity systems seek to use blockchain networks to create identity records that aren't controlled by any single entity or group.
Memes - Meme tokens are rare. Much wow.
Advertising- Decentralized advertising platforms incentivize new markets through ad-network-specific onchain tokens.
Content Creation- Content creation chains incentivize content-creation by fostering a micropayment market between content-consumers and publishers.
Asset Management- Asset management platforms offer ways to manage onchain assets
Timestamping - "Timestamping services underpin decentralized digital-rights management by using the permanence and irrefutability of blockchains to prove that a piece of content existed at a certain time."
Payment Platform - Payment platforms integrate multiple blockchain assets into one platform for ease of payment, possibly employment smart-contracts for more complex applications.
Decentralized Exchange - Decentralized exchange platforms allow the conversion of one crypto asset to another without a middleman mediating the transaction.
Exchange Platform - This sector refers to tokens that exist primarily on centralized exchanges for use on those exchanges, or as reward points or other platform usage-incentivization means.
Lending Platform - Blockchain lending platforms generally collateralized loans using on-blockchain assets, but may offer other loans or lending functions using blockchain networks
Crowdfunding platform- Crowdfunding platforms raise money via a native blockchain token and allocate to projects, often through community vote (either onchain or through a Foundation).
So when investing for the long term, know the business, the underlying technology and the team and then allocate accordingly to your portfolio based on Asset class , you don't want to have to many in one class and only 1-2 will succeed in the long term to become the Amazon,Google,Facebook's of the world.
Next post I will allocate the Coins to the classes.
KR, DM
