Ignore The Bitcoin Maxis

Louis Sykes
October 6, 2021

In markets, there are certain groups we want to completely avoid.

Permabears, gold bugs, and the "doom and gloomers" are great examples of what not to be.

These are people who project their political and philosophical views onto the market rather than using the market as a way to make money.

When we're dealing with cryptocurrencies, deciding who we listen to is incredibly important. Cults like the laser eye people, religious followings of altcoins, and of course, the dreaded Bitcoin maxi are all in the business of fueling their internal confirmation biases.

For those unfamiliar with the nomenclature, Bitcoin maximalists believe that Bitcoin is the only cryptocurrency that matters, while everything else is worthless. Similar to the gold and silver crowd, these people will only buy Bitcoin and nothing else.

I find it hilarious that Maxi's will criticize those in traditional markets for missing out on alpha, but they won't buy a single altcoin, which is ironic because Bitcoin's share of the asset class has dwindled lower and lower over the years.

The alpha within crypto has been down the cap scale in smart contracts, defi, exchanges, and NFTs, not in Bitcoin.

Let's not forget that we're here to make money, not to be right and fuel our ego. When you become a maximalist in anything related to financial markets, you lose all objectivity. When a person of this mentality puts their analysis forward, you have no idea whether they're being driven by evidence or their own subjective view of the world.

Whether we're talking about gold bugs, permabears, or Bitcoin maxis, that's an incredibly dangerous characteristic as a market participant.

If your worldview prevents you from changing your approach as new evidence comes in, you're not an investor, you're an ideologue.

Don't be like these people.

Stay objective, and see the market for it really is, rather than what you want it to be.

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Allstarcharts Team

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