Analyst Scofield predicts capital flows into altcoins – but is this correct?

Even though Bitcoin is stealing the show this cycle, and is actually proving itself to be a world-class financial asset, there are still many analysts who can’t stop talking about altcoins. Scofield is the next to predict a breakout for altcoins as he expects capital to flow out of Bitcoin.

Altcoin market ready for breakout?

“The altcoin market looks poised for a breakout soon, while liquidity is about to trickle out of Bitcoin. Memecoins like FLOKI are in a great position, thanks to a mix of appeal, actual utility, and a strong ecosystem,” said Scofield.

That of course sounds like music to the ears of people who are heavily involved in altcoins and memecoins, but to what extent can we still take this seriously?

What analysts like Scofield forget is that there are few people who see blockchain technology as something revolutionary. The only working application that is potentially worth trillions of dollars is decentralized money and of course we already have Bitcoin for that.

It remains to be seen what role altcoins and memecoins will play. They have not yet changed the financial system and as time goes by the chance of this seems to be getting smaller and smaller.

Real World Asset tokens (RWAs) are a nice development, but of course not enough to justify a market value of 400 billion dollars, such as that of Ethereum.

What’s the problem with these analysts?

There are a few things going on here. First of all, they are often people who have been very lucky during previous bull runs, by buying projects that turned gigantic, so that they are now financially independent.

But what you see is that they have not developed in all those years. They are still saying the same things, while the world now realizes that blockchain technology is not as revolutionary as the white papers from 2016/2017 promised us.

Now if you are very honest with yourself and look at which projects you really use and in what way. Is there anything that makes you think: that could really be worth trillions of dollars in the future?

That remains to be seen, and as more and more people realize that, I don’t expect we’ll get an altseason comparable to 2017 or 2021. But maybe I’m wrong, of course, because there is no such thing as certainty, and certainly not in the financial world.

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