He's using top marketcaps and an unchanging index over years, which doesn't reflect the nature of a managed index or it's trading strategies.
also... You do realize that ad was paid to be posted in the "opinion" section?
Exactly.
Comparing a managed index like ICONOMI.index to an unmanaged index history of random coins from that link, is like comparing Apples to Oranges.
Yea no doubt... Funny thing too, this description...
"Willy Woo is a New Zealander with 15 years experience founding multiple startups. He's also an angel investor, traded derivatives during the 2008 world financial crisis and, since 2013, has been fascinated and excited about cryptocurrency." Yet he pays to publish an obvoiusly misleading article bashing crypto-index funds... seems fishy.
The guy is supposed to be some kind of crypto financial king yet posts something you would expect from a total newb.
That's where you're wrong. I have got a chance to know Willy Woo and he's the real deal. There was no money exchanged for the article.he posted it to his own blog (which is also not pay) and Coindesk asked for it after Tuur and several other big time people in crypto tweeted about it.
If you bad half a brain you'd see this is one of the first truly thought out pieces on the subject.
No his article is shiite. Only follows the top 10. Conveniently ignores the 20-30-40X gains leading up to it. If he reported on the actual gains, it would be no contest, alts outperform bitcoin exponentially.
Willy Woo article on Coindesk is a very interesting read
Conclusions
Bitcoin is really hard to beat with index funds, maybe unbeatable with the present state of altcoins we have. Not only do they underperform bitcoin by a significant amount, but as a combined basket their day-to-day volatility is higher.
I ask myself why we don’t parallel the stock market world, where indexes are very successful and my conclusion is that we are in a world of unvetted shitcoins.
His conclusion is the exact reason why his index simulations performed so poorly compared to bitcoin. He arbitrarily included the top 10 or 20 altcoins, without doing any vetting to keep obvious losing picks out of the indexes, like Paycoin, Auroracoin, Quark, Bytecoin, Worldcoin
The currency must have an underlying concept which ICONOMI estimates as viable in the long term.
^^^That's the reason why this eligibility factor for inclusion in iconomi.index is so important^^^
Part of my beef with their investor whitepaper is they picked a bull market (since Jan 2016) to demonstrate their glam results
Prior to 2016, the altcoin market was not mature enough for something like iconomi.index. The first 1.5 or 2 years of Willy Woo simulation was a time when complete scams or copy-paste shitcoins with hardly any team/community could pump up into the top 10 cryptos.
Those days are in the past. Nowadays, I count at least 8 projects in the top 20 which have millions $ in the bank for development. During the first 1/2 to 2/3 of Willy Woo's 3-year simulations, such altcoin projects did not yet exist.
