BitTorrent’s Lack of Gains in 2021’s Second Half Says It All

Almost six months ago to the day, I said BitTorrent (CCC:BTT-USD) and BitTorrent X were nothing but hot air.

A BitTorrent (BTT) crypto token on a purple fabric background.
Source: Stanslavs / Shutterstock.com

Since my June 30 article, BTT-USD has gained 4.7%. That tells you everything you need to know about the cryptocurrency’s prospects. 

Ranked 55th in market capitalization, there are 54 other possibilities, many with much likelier appreciation potential.

As I said then, I’ll say now. 

BitTorrent is a complete waste of your time. Here’s why.

The Failure of BitTorrent to Launch

Bloomberg recently discussed how $1.5 trillion in value was added by cryptocurrencies in 2021, making it far and away the best-performing asset in 2021. The Bloomberg Galaxy Crypto Index gained 160% in 2021 through Dec. 17. By comparison, the S&P 500 gained 23% in the same period. 

That’s a seven-fold beat. No wonder cryptocurrency bulls are looking forward to 2022. However, if you’re looking for BitTorrent on lists of the best cryptos to own in the year ahead, you won’t find it.  

As I said in the intro, BitTorrent has gained 4.7% in the second half of the year. By comparison, the top three cryptocurrencies by market cap – Bitcoin (CCC:BTC-USD), Ethereum (CCC:ETH-USD) and Binance Coin (CCC:BNB-USD) – averaged a return of 64.5% over the same six months.

While you might have broken even or made a little off your BitTorrent bet, the opportunity cost of not buying one of the front-runners costs you dearly. 

Who knows what 2022 will bring, but I remain very skeptical of Tron Foundation founder Justin Sun’s entire vision.

“Justin Sun chooses to educate people through social media and Medium. Unfortunately, I have no interest in joining Medium, a platform that seems designed to be a self-help site rather than a provider of useful information,” I wrote on June 30.

I’m not surprised BitTorrent did nothing for most of 2021. What does surprise me is that one of my InvestorPlace colleagues has something good to say about the altcoin. In May, she suggested that the millions of users of the BitTorrent peer-to-peer file-sharing platform make it an excellent long-term investment.

I respectfully disagree.

Moving to Grenada

In a bizarre twist, Sun, the founder of the Tron blockchain, has left his role as CEO of the Tron Foundation to become Grenada’s full-time ambassador to the World Trade Organization. 

“It is a true honor to serve as the WTO ambassador for Grenada,” Sun said in the Dec. 17 press release announcing his appointment. “I look forward to the opportunity to represent Grenada and work with WTO leadership to reinvigorate global trade in various ways, particularly the development of a robust digital economy internationally.”

I have no idea if Sun has any connection to the Caribbean island other than it would make a nice place to visit from time to time. The position is unpaid, so he’s either very charitable, or it’s the best way for him to leverage what he’s already built through BitTorrent. 

My cynical side suggests it’s all about the latter.

Apparently, the billionaire likes art. Artnet reported in a late November article that the Tron founder’s bought more than $100 million in art in 2021. His money has to come from somewhere.

“As our aim is to build the finest and most diverse contemporary art collection, we are interested in a variety of art forms and categories such as video, music, installation and A.I. art, which we don’t yet have,” Artnet reported Sun said about his purchases.

When it comes to investments, I’m from Missouri. You have to show me that you’re real. BTT-USD might be bought and sold on all the major cryptocurrency exchanges, but Tron’s website looks like it was built by a 10-year-old. 

I can’t put my name on something so lacking in transparency. I just can’t.

The Bottom Line

As cryptocurrency investments go, you’re better off buying Dogecoin (CCC:DOGE-USD) or Shiba Inu (CCC:SHIB-INU) than you are BitTorrent. 

For me, this is another example of h0w speculative the markets have gotten in 2021. People are willing to bet on almost anything if there’s a chance it will appreciate.

I don’t know if there’s any Florida swampland still for sale, but if there is, all those who own BTT-USD ought to be the first in line to buy some. You can’t help yourselves.    

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. 


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