Understand the Crypto Market: Distinguishing between Fundamentals and Degenerate BS
When it comes to the crypto market, it's important to see it as a whole and understand the difference between what is considered "fundamentals" and what is considered "degenerate BS." The most solid projects in the crypto market are those that fall under the category of "infrastructure." These are projects that are used or built upon by other projects, such as Ethereum.
Investing in infrastructure projects doesn't require the success of the projects that run on it. What matters is that projects choose to build with it, even if they are not successful. To put it in perspective, investing in a regular project in the crypto market is like investing in a car company that competes with other car companies. Your success is dependent on that company's success and sales. In contrast, investing in blockchain platforms is like investing in the road network on which the cars drive. It doesn't matter which car company is successful; if they're driving on your road, you win regardless.
However, this doesn't mean that these infrastructure projects are completely safe. When the alt market sees a decline in price, these platforms will also see a decline, given that the majority of "adoption" on them is from apps that themselves have little adoption and are overpriced. But it does provide some safety through the ebbs and flows of the market while the crypto speculation era continues.
It's important to note that when it comes to fundamentals, it doesn't just mean tech or business fundamentals. Fundamentals are everything that provides a narrative for price increases, even if it's degenerate BS, and things that also lower the risk. So, when someone says "When I apply fundamentals, I never make money; when I just ape in, I do better," it's likely because their fundamental understanding is incorrect.
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