Doctors, Dentists, and small business owners took two paths to invest in stocks, they used a high price broker and invested in large-cap stocks like Apple, Google or Facebook and got ripped off by paying annual fees where the broker did nothing. The frustration from the first path drove many retail investors to do their own research, open their own accounts with TD Ameritrade and E-Trade with a low fee base and find stocks that fit their portfolio and investment strategy.Many of these Doctors and Dentists had performance in the 1990s, and even in the 2000s if they stuck to a strategy that kept them away from emotion decision making, but the conclusion in hindsight was clear – high priced brokers didn’t know shit. Investors could buy Apple in their TD Ameritrade account without getting gouged by some broker with a bow tie who took them to Redskin games.
Most of these investors made money in US Stocks over the years despite all of the pitfalls and traps simply because US Stocks exploded in value and the investment strategy of holding large caps, and speculating in smaller stocks actually worked. The problem with the strategy was that smaller stocks (microcaps) had become a total ruse, and it was nearly impossible to make money no matter what you did, it seemed, the only guys who made money were in a highrise office in Vancouver or Fort Lauderdale, dodging regulators. Enter Bitcoin and Alt-Coins.Those same Doctors, Dentists, and small business owners now have an investment in Bitcoin, and speculate in the 5000 choices they have in the Alt-Coin markets, and Aaron Hankins of MarketWatch refers to any cryptocurrencies other than bitcoin as altcoins.
This logical transformation has been in progress since the Bitcoin explosion in 2017, even though many investors were burned by unregulated ICO’s, it was the same experience they had in regulated microcap stocks, so frankly they don’t give a crap about if these markets are regulated or not. In fact, most of these investors know that the SEC and CFTC are made up of job-hoppers who only work for short periods on the regulation side so they can get a job at Goldman Sachs, JP Morgan or some hedge fund where they can make 5x the money for a 2-year stint at a regulator.All in all, investing in Alt-Coins is in its infancy but has fully replaced microcap speculation for retail and many institutional investors are also taking positions in Bitcoin, Etherium or others. The reason is that they have more upside, and any lack of regulation is irrelevant to performance. Welcome to the new decade, welcome to the new world of investing, and welcome to the 5000 choices you have in Alt-Coins.