![]() My recommendation here is that investors should be very careful with this crypto. I have learned a valuable lesson about market cap size with cryptocurrencies from it. However, as I also pointed out, there have not been a lot of recent developments with BTT crypto.īut right now my own experience has soured me on the crypto. For example, in one article, when I first bought into BTT Torrent, I discussed the history of this crypto. There are obviously good reasons why you might buy BTT crypto, as I have pointed out in earlier articles. In the meantime, other larger cryptos and even smaller ones were outperforming. I also realized that I could be stuck in this crypto for a good while. To my chagrin, once I realized this, I later decided to sell my position at a loss. I, too, bought BTT Torrent after it had run-up. Oh, and just in case you think I am pontificating here, I readily admit that I fell into these traps last year. You can probably figure out what these mean, but, suffice it to say, that chasing a crypto after it’s moved up is the main catalyst to these two biases. This also relates to two other known investing biases: trend-chasing and confirmation bias. Investors in BTT crypto may not have known much about BTT but when they saw it rising they jumped in. For one the theory of “ bounded rationality” shows that people will tend to invest based on limited information. Bounded Rationality and Other Biasesīy the way, this relates to several commonly known biases that are typical in stock market investing. Therefore, from a practical standpoint, it is highly likely that as a percentage more investors in Ethereum made money than the total number of investors in BTT crypto. By contrast, many more investors in Ethereum held this crypto for the whole year. So that might seem to contradict what I just said about the value of the market cap.īut, the truth is that most investors in BTT Torrent got into the crypto after it had moved up. By contrast, Ethereum is only about 3 times the price it was a year ago. Now, granted, BTT crypto is now about 9 times the price that it was a year ago. These numbers show you that market cap size is really not important in terms of determining potential performance.ħ Pharmaceutical Stocks That Could Make You Rich So, if you think that just because BTT Torrent has more potential upside since it is smaller, think again. But BTT Torrent has a market capitalization of $2.94 billion, or basically less than 1% of the market value of Ethereum. For example, Ethereum trades at a market value of $442 billion, according to. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Size Doesn’t MatterĪnd this is for a much larger cryptocurrency. ![]()
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