I was just asked why I all of a sudden stopped promoting MWC, in favor of Beam – and here’s my answer.
Essentially, the sum total of all I’ve learned in crypto – and three decades in financial markets – is the best way to create value is having a viable, defensible use case; and somehow, preferably organically, create a NETWORK EFFECT to expand it - that ultimately, grows exponentially.
Crypto is the prime example of how napkin ideas - plus coding, marketing, and capital expenditure - are combined in the longshot hope this investment holy grail is found. However, it is nearly impossible to generate – in crypto, and ALL business ventures – as 5,000+ failed, or failing altcoins attest, too.
To that end, what I have found more than anything, is that money alone CANNOT create network effect – as ultimately, no one can predict if one will organically form, no matter time, effort, and capital is put into the effort to foster it.
After seven years in crypto, I more than ever believe 99% of altcoins are useless – and consequently, am more “maximalist” than at any time before. However, 1% of what will ultimately be, in my opinion, a MAJOR GLOBAL ASSET CLASS - on a par with stocks, bonds, commodities, and currencies - is still a HUGE amount. Thus, there will be HUGE altcoin winners, if you are smart and lucky enough to find them.
Due to my experience building MWC last year, I am more attuned to what MimbleWimble brings to the table than 99% of the crypto community – which has served me well, and will do so FAR MORE in the coming 12-18 months, as MimbleWimble mania spreads.
Plain and simple, it is VASTLY better blockchain protocol than anything in existence – featuring superior scalability, privacy, and fungibility. Which is why, it matters not if Bitcoin ultimately incorporates it – as irrespective, MimbleWimble will play a MAJOR role in the crypto ecosystem, in 2020 and beyond. And if you don’t believe me, ask Trace Mayer.
The MimbleWimbleTrinity is immune to new competitors, as the barriers to entry are too large – growing larger each day, as network effects are being built. If I am correct, all three will be MUCH more valuable a year from now – potentially, worth billions, not millions.
However, it couldn’t be more obvious that today, Beam should be the most valuable coin, by a SIGNIFICANT amount – which is why its current market cap, of $48 million versus $46 million for Grin and a whopping $133 million for MWC (ENTIRELY due to ONE fund buying it up) presents, in my view, the best buying opportunity in the entire altcoin universe.
Which is why, aside from Bitcoin – which could potentially reach $50,000 this year, as institutions target the “NEW Hoffman Line” of a $1 trillion market cap - Beam is the ONLY significant position I am currently holding.
For months, I have made it crystal clear that Grin is for all intents uninvestable – having no supply limit, no halvings, eternally miniscule stock to flow, and a foundation seeking to control and manipulate mining. Yes, it has built a network effect - and thus, should do fine as MimbleWimble mania expands. However, it is so inferior to Beam, on all counts, it is quite frankly, laughable.
As for MWC, it was created by brilliant people with good intentions. However, now that one investor has hoarded such a huge percentage of the supply; in the process, holding the price WAY above market-clearing levels; its risk/reward profile, in my view, is no longer favorable.
Moreover, the centralization of all functions – including the upcoming HODL program – makes me pause further…especially when such a fine-tuned machine like Beam is available to buy, at ONE-THIRD the valuation.
I mean, it’s almost comical how big funds like the one taking such enormous risk in the otherwise extremely illiquid MWC - that it will generate a network effect big enough to enable sale of its enormous, outsized position at higher prices; haven’t noticed that at current prices, you can STILL purchase roughly 1% of all existing Beam for about a half million dollars.
This, mere weeks after Beam HALVED – meaning, supply is about to significantly contract, whilst stock to flow material rises. This, in a coin that is already massively liquid – and in fact, was just listed on Binance…which, I might add, did NOT list Grin.
Per the below tweet, perhaps the biggest news in Beam’s history came in November – when its price was plunging to all-time lows due to the overall crypto collapse. Which was, creation of the Beam Foundation to, unlike Grin, altruistically promote full decentralization of this amazing MimbleWimble protocol.
https://twitter.com/Andy_Hoffman_CG/status/1226939613349961742
- Andy_Hoffman_CG
In other words, when combining the relative levels of DECENTRALIZATION, LIQUIDITY, and NETWORK EFFECT – at a time when it JUST HALVED – I think it’s a no-brainer that Beam should, by a SIGNIFICANT amount, be the most valuable MimbleWimbleTrinity coin…NOW!