December 2017 was the month that passive investment in cryptocurrency indexes became a winning strategy. No-one in the market is investing on fundamentals but enough people woke up to the fact that Bitcoin is old technology that does not work very well. Bitcoin is slow, expensive and controlled by insiders with their own agendas. Capital has started flowing into Alts in a big way.
Passive investment wins big
The chart below shows that a passive investor who followed the MVDA25 index made a 250% gain since the 1st December. The same investment in Bitcoin would have given a 25% gain. Passive investors trashed Bitcoin HODLers (“Hold On for Dear Life“). This performance is great but look at the volatility in the charts. Bitcoin has had a roller coaster ride. The index is much smoother. Passive investors benefit from both superior gains and a better night’s sleep.