The Crypto Multiverse of Madness
Forget the Metaverse, Understanding the Crypto Multiverse is the Key to Real Success.
With the MCU’s, Dr Strange in the Multiverse of Madness coming out soon, I thought it a good time to share one of my favorite ways of explaining what crypto project to invest in. What does the Sorcerer Supreme have to do with crypto? Well, nothing directly. However, HOW the MCU describes and visualizes the multiverse is a good way to look at blockchain projects.
First though, a quick disclaimer. This is not financial advice, and I am not a financial advisor. In this article I will be talking about a few different coins, some of which I hold, and one in particular, $ZEN, I am a Zenvangelist for. So, know that I am biased toward the coin/project itself. However, the coins mentioned are just examples I use. Feel free to use the guide to compare your own favorite crypto project. Be sure to do your own due diligence and consult an actual financial advisor before making any financial decisions.
For this article to make the most sense, it helps if you have seen a couple key MCU movies / shows. The most important being the first Dr Strange (movie) or Avengers: Endgame (movie), and Loki (show).
If you haven’t seen them, (or if you have and need a quick refresher), the multiverse is an infinite flow of parallel worlds and different realms of existence. As of Spiderman: No Way Home, the ‘main’ MCU timeline is what we’ve all been watching from Iron Man until now, and all other connecting properties such as Venom, the upcoming Morbius, the previous Spiderman series, the X-men movies, etc., are all alternate ‘universes’ that are splits from the main timeline. This is an overly simple recap of 14 years of movies, shows and other franchises, but it’s really the core of what you need to know.
In the Crypto Multiverse, you can consider Bitcoin ($BTC) the ‘main’ blockchain (the main timeline / strand). Launched in 2009, it has been around [almost] as long as the main MCU timeline. Bitcoin is the original, has the highest marketcap, and is the blockchain all others are compared too.
If you are looking to invest in cryptocurrency to generate profits/increases, your first dive into due diligence needs to be Bitcoin.
Bitcoin is often called digital gold because it is supposed to be a hedge against inflation. While this recent crypto winter has proven that to not be absolutely true, Bitcoin is a fairly consistent and resilient asset. Even with the recent plummet of Bitcoin going from its all-time high of near $65,000 down to $35,000, if you were an adopter in 2017, you got it for as low as $1,100. However, even if you bought it at the peak of $20,000 in 2017, you’ve doubled your money in less than 5 years. No matter how you look at it, those are amazing returns.
Even better, the trend will likely continue. Bitcoin should continue to grow, and even if you bought in near that 2021 all-time high, I would be confident in thinking Bitcoin will be over $150,000 (at least) by mid-2027.
Between that pricing consistency (yes, as a whole I believe $BTC has increased consistently, maybe not on daily or weekly level, but definitely as a whole, over time) and the fact Bitcoin was the first, it is much like the MCU main timeline.
In the picture above, Bitcoin is the bright orange line. Fitting since the Bitcoin logo is also orange. Seriously, I did not plan this!
From an investing standpoint, if you are wanting to jump into cryptocurrencies, Bitcoin is (in our opinion), your safest choice. In 5 years, not only is it likely to still be around, but it will also likely be worth at least 2x its current value. However, what if your itch is something Bitcoin can’t scratch? That’s where the Crypto Multiverse gets really interesting!
Alternate Strands of the Crypto Multiverse
Since 2009, thousands of new blockchain projects have launched and most of them have crashed and burned. However, here in 2022, there are still a few (or at least a couple) hundred projects that are worth digging into. None may be as large as Bitcoin, but certainly many are more powerful (or have more use cases).
A few of the more prominent strands of the Crypto Multiverse are projects such as Ethereum ($ETH), BNB ($BNB), Cardano, ($ADA), Solana ($SOL), Avalanche ($AVAX), Polkadot ($DOT) and Polygon ($MATIC). All Layer 1 or Layer 2 projects that offer a different version of speed, privacy, functionality, fees, etc. While there is not enough space in this article to go over all those projects in detail, each offer a different experience than Bitcoin.
Each of these projects are like alternate strands of the Crypto Multiverse. It is important to note, these are not forks. In the world of blockchain, a fork is a split of a particular project with new, different code. Some of this may be community-forced, other times it may be because of a notable improvement to the blockchain itself. As such, when thinking of the Crypto Multiverse, it is better to think of these other projects as alternate strands running in parallel to the main strand. They all are wanting to go to the same place… more adoption, increased value, etc, but some will get there differently, and some will flame out and end abruptly.
What is the Best Project / Strand to Invest in within the Crypto Multiverse?
This is where using the idea of the Crypto Multiverse gets cool. I’m going to assume you are already familiar with our Crypto Checklist article. It lays out the top 3 things we look for when deciding what crypto project to invest in. In short, those three things are Tokenomics, Project Technology / Purpose, and Social Awareness / Adoption.
Let’s say you find a blockchain project that meets all these requirements. Is it worth investing in? Running with the caveat that you are wanting to invest in ‘any crypto’ in the first place, then the only question you need to ask yourself is,
Will the alternate strand (Project X) outperform the main strand ($BTC) in the Crypto Multiverse?
At the end of the day, Bitcoin paces the market. For the most part, if Bitcoin rises, so do the ALTernate strands (*cough* ALTcoins *cough*). If Bitcoin falls, so does the entire crypto market, generally speaking.
Your altcoin then needs to perform at a rate higher and faster than Bitcoin, otherwise there is no point in investing in it. The only clarifying point to that is if you truly believe in the project, and financial gain is not important to you, then by all means invest in what you believe in. Many of us love to live in a fantasy land anyway, which incidentally is what the entire Metaverse is all about!
In the beginning of this article, I mentioned $ZEN, which is the coin for a blockchain project called Horizen. It is my favorite alternate strand in the crypto multiverse AND is a project I completely believe in. In short, Horizen is the most secure interoperable blockchain ecosystem supported by the largest and most decentralized multi-tiered node infrastructure in the industry. Its sidechain platform focuses on scalable data privacy and enables businesses and developers to custom build their own public or private blockchains using its unique sidechain technology, Zendoo.
Let’s compare $ZEN to our Crypto Checklist:
- Tokenomics – For more of what we are looking for here, check out our article, Tokenomics – Crypto Marketcap Explained. The above screenshot will have everything you need to do the ‘math’ yourself. In short though, sitting at 144 in total marketcap, $ZEN has a long runway.
- Project Technology / Purpose – With Token Mint, NFT support and an EVM coming out all within the next 6 months on mainnet, it checks this box heavily.
- Social Awareness / Adoption – Horizen is hyper-focused on two things in its current phase, Interoperability and Compatibility. Also, the team behind Horizen Labs helped the Bored Ape Yacht Club (BAYC) with the development of their $APE token. A partnership that opened the doorway for future collaboration. So, adoption looks imminent at this point.
For us, the above illustrates how much $ZEN checks all the boxes on the Crypto Checklist. The only question that remains is, Where does $ZEN fit in the Crypto Multiverse?
If we thought $ZEN would only natively increase in value as Bitcoin drove the market up, then it would be prudent to invest in the safer, main strand that is $BTC. It is likely $ZEN would move with it, as all active altcoins do, so why invest in a coin if it won’t outperform the ‘safer’ coin?
However, since this alternate strand ($ZEN) ALSO checks all the Crypto Checklist boxes, we believe it will move at an increasing rate IN ADDITION to the native Bitcoin-driven growth. I could do a whole other article on how much faster it would increase and at what price point it could support with this increase, but that isn’t really the point (though send me a note on Twitter if you would like me to).
The point is this alternate strand should increase at a faster rate than bitcoin and is worth our investment because of 3 things:
- Being an active blockchain project, it will increase natively WITH Bitcoin
- Being a growing Blockchain project that checks all the boxes on our Crypto Checklist it will move at an accelerated rate beyond the native $BTC-driven rate
- Being a project we believe in allows us to be patient and let our investment grow
For us, $ZEN is the perfect altcoin… or alternate strand, to invest in outside of the main strand that is Bitcoin. For you, it may be a totally different project. That’s the beauty of the Crypto Multiverse – there will be a near infinite amount of amazing blockchain projects as advances continue. The Crypto Multiverse is more like the MCU and less like Highlander… there can be more than one!