There hasn't been a serious altcoin bubble bursting since the rise of Monero the last year AFAIK. So we have no past data to learn from. I know I'm buying everything I can permit myself between 10-15 euros though in such an event.
This will only be the second serious bubble. It is already at a very late stage : there are many coins with dead blockchains trading huge volumes and price (exactly as before).
The burst of the first, in early 2014, was chaotic, and liquidity drained rapidly from every altcoin into BTC, the only 'safe haven' at the time... The best actively developed coins were hit hard, and recovered very slowly, the dead ones carried on down.
This time it will be instructive to see which of the really big coins are considered 'safe havens' , and which are not.
Hmm, interesting. So that time when alts in a bubble popped, the value still remained mostly in crypto? i.e. "drained" to BTC so that the dollar-value stayed mostly the same, if BTC went up about an equal amount as whatever was lost in the altcoin valuations?
Or did the dollar-value of all marketcap just disappear, i.e. crypto as a whole went DOWN at that time?
Just asking because IF this is the case, it seems to me that one would be reasonably well-protected from this situation if the overall crypto portfolio was balanced about 50% bitcoin and 50% "all other alts" (in whatever percentages you like best for those other alts, of course).
Or am I missing something here? Hmm
