At Altlift, we believe that the world needs more different currencies working side by side. Many problems and inefficiencies arise because humanity tries to use one tool to perform conflicting functions. People are different, they have different needs, and therefore they need different tools.
An example of this is the situation we call the Ales Dilemma. Aleš Janda, a cryptocurrency tracing expert who is now an expert at Chainalysis, elaborated on the question during a joint trip to a lecture in Olomouc: “I have 1,000 CZK in my wallet, but you decide whether to burn it or spend it. What are you going to do?” Personally, we would let Ales spend the thousand crowns so that the money would get into the economy and, indirectly, perhaps some of it into our pockets. If it were us, Ales would have it burned. He assumes that the amount of money in circulation would decrease, and thus the value of all other money, including ours, would increase relatively. The dilemma is whether we prioritise the interests of rentiers, who have money saved up, or the interests of entrepreneurs, who offer products and services and therefore need purchasing demand. The interests of both groups are legitimate. But if they use the same money, then they are also opposed to each other.
We focus on fundamental analysis of coins. We identify the needs of different groups of people and then look for cryptocurrency projects that are designed specifically for them. You can’t optimize one currency to fit all needs, just like you can’t sail into any port should you try to sail into all of them at the same time. So we are not bitcoin maximalists, despite agreeing that bitcoin is the best and most important cryptocurrency. It has a central place in our portfolio. Bitcoin is the world’s most robust store of value and we believe it will become the reserve currency. However, precisely because Bitcoin excels in this regard, it will miss the train in meeting other needs. This is the space for altcoins, which is how we chose our company name.
The vast majority of the thousands of different altcoins have absolutely no fundamental value and will sooner or later disappear. There are rather few relevant projects on the market, which makes it all the more fascinating for us to successfully expose such projects.
We don’t primarily look at the quick and ephemeral appreciation of coins that are just trending, but the next day a speculative bubble can burst and their price plummets by tens of percent. We do not seek to increase risk in an already highly risky and volatile market. We are convinced of the revolutionary added value of distributed technologies and are preparing for a reality in which most existing assets will be tokenised.
In the near future, anyone with even a small amount of capital will be able to invest comfortably, quickly, safely and without intermediaries in projects they see potential in and that make sense to them. He will then be able to sell the security tokens of these projects on the secondary market just as conveniently and instantly as we trade cryptocurrencies today. The core of the cryptocurrency market will then not be the currencies themselves, but shares in valuable assets such as real estate, stocks, bonds, art, vouchers for goods and services, commodities, utilities, but also, for example, sponsorship of zoo animals or sports clubs or music groups.
A fan of a band will show their support by purchasing a fan token on a mobile phone app. This will help the band to record a new album, for example. The fan will then receive a share of the income from music sales or concerts automatically and continuously (not just once a year), thanks to a sophisticated smart contract system in the currency of their choice. In the same way, an investor can walk down the street, and if he likes a piece of land or a building, he turns his smartphone on it and instantly knows if there is a virtual share of ownership on the market. He can then use that share, or part of it, to pay at a restaurant at any time. A decentralised currency exchange ensures that the operator of that restaurant receives bitcoin or perhaps the Czech koruna, simply the currency of his choice. The investor has nothing to worry about. He decides what he wants to store value in, liquidity is assured. Similarly, he can buy a share in a work of art, a painting he likes in a restaurant. Not only is he buying the feeling associated with a pleasurable experience, but more importantly he is also speculating on the rise in its price. Buying shares will be as easy as shopping on Amazon. If we read about an exciting new business project on Facebook today, most of us can only dream of one day trying to change the world ourselves. But in a tokenized world, we can reasonably contribute a small amount to such a project.
These things can be done to some extent today. The development of DLT is heading towards our vision coming true sooner than most people can imagine. So we are primarily including cryptocurrencies in the portfolio whose concepts make sense for such a world, and which are now building the infrastructure for it. These cryptocurrencies are a new category of companies whose value (and, in the case of a reasonably set up coin, the value of that coin) will rise dramatically, just as the stock values of then-revolutionary companies like Google, Amazon, Netflix, and Uber have risen over the past two decades.
We consider the most important benefit of cryptocurrencies to be the fact that they allow alternative ways of making decisions in society to be created and tested. Satoshi Nakamoto has shown that his consensus mining mechanism leads to a stable system where it is not economically worthwhile to cheat. In the political sphere, striking and sinister things are happening. It is precisely at a time of increasing power of governments and multinational corporations, lockdowns, restrictions on free speech, populism and growing scepticism towards representative democracy that we need to look for alternatives to centralised power reducing individual rights and freedoms. While some people call for authoritarian leaders, cryptocurrencies offer decentralized parallel structures. An alternative and a free space instead of destroying existing institutions. In fact, the various DeFi systems and consensus mechanisms of cryptocurrencies offer an environment for testing the possibilities of liquid governance, liquid democracy. It is far from clear which of these methods of decision-making are sustainable. But with governments and central banks continuing and set to continue the absurd pace of issuing new fiat money, more investment is flowing into cryptocurrencies. People are testing these new solutions, and they are doing it honestly because they are voting with their own money. So, thanks to expansionary monetary policy, we have the opportunity to participate in something fundamental. We get a window of time to test which solutions are meaningful and, moreover, to make money out of it. Yes, there have been a few healthy corrections and there will be more, but we are still in a bull run and until this fountain of new money stops, which will probably take at least until the end of the covid crisis, we are not too worried about rising prices. In fact, inflation is already starting to show up in the consumer basket according to the latest economic data.
- Fundamental analysis
- Meaningful altcoins
- Security and fraud in the cryptos
- Macroeconomics, CBDC and cryptoassets
- Why the world needs more currencies
- DLT and blockchain applications
- Cryptocurrency portfolio management
- NFTs, tokenization and game economies
- Blockchain and the real estate sector
- Education in blockchain and alternative currencies