Even Adam Back, CEO of Bitcoin infrastructure company Blockstream, recently cautioned investors to avoid altcoins. In doing so, he even claimed their value might fall by up to 90%. Back’s warning underscores an important reality. As illustrated on the Altcoin Season Index, altcoins have never been this drastically underperforming against Bitcoin. His skepticism doesn’t stop at crypto index ETFs either.
The Altcoin Season Index is just at a pathetic 12 out of 100. This altcoin winter makes Bitcoin look great. This reading doesn’t mince words on the underperformance of altcoins against Bitcoin. To make it an official altcoin season, at least 75% of the top 50 cryptocurrencies should beat Bitcoin’s performance. This performance should be determined over a 90-day rolling period. The current state of the market is anything but this standard.
Adam Back, the cofounder of one of Bitcoin’s earliest inspirations, Hashcash, and a key figure in today’s Bitcoin, has long expressed his skepticism about alts. Back’s contributions to the field defy belief. In fact, Satoshi Nakamoto himself referenced him in the original Bitcoin white paper. His view is one of the most influential within the largely unregulated crypto world.
Back’s forecast of a 90% collapse in altcoin values shows how extreme his altcoin skepticism goes. He has been a vocal skeptic, too, urging investors to tread carefully whenever they thought about putting money into altcoins. Instead, Back advises against hating Bitcoin and putting faith in the old world assets, such as treasury stocks.
The Blockstream CEO’s comments remind us all of the volatility and market risks faced in the altcoin world. Therefore, investors need to do extensive due diligence and tread carefully before pouring money into non-Bitcoin cryptocurrencies. Looking at today’s market conditions, it’s clear that an altcoin season isn’t right around the corner. So, the logic that is making Back so cautious is even further strengthened.
