When it comes to Bitcoin vs. altcoins, it has been a pretty one-sided battle, with Bitcoin dominating all of the other altcoins. Bitcoin has had an excellent 2019, almost tripling in price. Altcoins have also had a good 2019, but they have not risen at the same rate as Bitcoin. Will that change going forward, or will Bitcoin continue to rule the cryptocurrency market?
It wasn’t that long ago that people were calling Bitcoin a bubble and looking at cryptocurrencies as a joke. That is definitely not the case today, as Bitcoin is considered a real payment method and an investment vehicle. Altcoins have not gotten the publicity that Bitcoin has received and they also haven’t become widely used. Will that change?
Bitcoin Dominating Altcoins
Many people who support Bitcoin don’t have the same feeling for other altcoins. The one altcoin that has gotten some attention is Ethereum, but even that altcoin has not stayed close to Bitcoin. In the last three months, the price of Bitcoin has risen about 128%, while Ether is up 81%. Perhaps Ether will be the one altcoin that can survive along with Bitcoin, but some people are skeptical. Peter Brand, founder of Factor LLC said that most of the altcoins will disappear in the future.
"I believe that the advance in late 2017 and early 2018 in altcoins will prove to be bubbles. I am of the firm belief that 95% of alt-coins will eventually be worthless and that BTC will occupy 80% to 90% of the total market cap of cryptocurrencies.” It should be noted that Bitcoin currently has more than 60% of the cryptocurrency market cap.
Some traders are not as pessimistic at Brandt. Josh Rager, a trader, told Cointelegraph recently that he believes some altcoins will still offer value. "The Bitcoin dominance of the total market share is at 65% and as long as this continues to move up than the rest of the market will likely stay stagnant with price. As we see BTC dominance drop, we'll know that the rest of the cryptocurrency market will likely start to benefit with funds shifting towards altcoins with strong fundamentals. Not to mention a lot of other crypto assets with solid tech coming to the market starting in late 2019." The one altcoin that could survive and possibly thrive is Ethereum. There are rumors that future trading for Ether could be on the way.
The big question for those people looking at Bitcoin and other altcoins is what will happen in the future. Bitcoin fell in price dramatically in 2017, but many people believe that won’t happen again because the market is different. Glen Goodman who is a full-time trader told Cointelegraph that things are different this time. "Crypto markets are largely driven by speculation but that doesn't mean they're currently in a 'bubble'. Classic speculative bubbles are characterized by euphoria and the mass-involvement of ordinary people who believe they will soon become rich. We saw that phenomenon in late 2017. […] I sold my crypto holdings shortly after, and waited for the bubble to fully deflate, which took about a year."
Scott Meler who is a trader at Texas West Capital said to Cointelegraph that the fundamentals this time are different. “I know it's cliché to say that ‘this time is different,’ but the evidence seems to support this belief. The recent increase has been fueled by institutional investors — retail has only started to pay attention in the past week, when the price advanced to nearly $14,000. During the last bull run, average people were already interested long before the price reached $10,000. The mania has not set in this time.”
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