Could Bitcoins Era of Market dominance be coming to an end?
Bitcoin is the king price wise - but will it always be so?
A lot of bitcoin buyers are regular people who do not understand the underlying fundamentals of blockchain and cryptocurrency technology.
They just see the price rising and want to get in quick in order to cut off a slice of the pie for themselves.
Many newbie investors buy up small amounts of bitcoins expecting astronomical returns in a short period.
However, they must understand that times are changing. Yes, the price of a bitcoin did spike up by 7 times in the last year. But that will not always be the consistent case.
The market is continually evolving with new technology entering the industry. Just think of Ethereum and all of the possibilities the Ethereum Blockchain has created in the space?
Entrepreneurs and startups are now able to create their own blockchains and provide unique services and tokens assigned to their business.
The bitcoin is running the risk of becoming a relic of ancient times. The network is overloaded, and transactions are taking a significant amount of time to be verified and completed successfully.
The update that was supposed to happen this month was called off. Despite a lot of crypto miners begging for increased block sizes and huge exchanges declaring that they would accept the block size increase.
Many crypto leaders are of the opinion that if the update went through, mass chaos would ensue. The update had no replay protection in mind for bitcoin users, which would definitely have resulted in the loss of a significant amount of assets in the future.
Neither SegWit2x nor Bitcoin Cash provided adequate solutions for the current bitcoin troubles.
Bitcoin might lose its market share.
There’s a lot of mania going on in the crypto market that directly affects dumb money. Most of that craze comes from news and rumours. Like the CME statement that they would be introducing bitcoin to their platform by years end.
After the media caught wind of the CME’s plans, the bitcoin price shot up to all-time highs. Purely based off of hype and nothing else.
Even if the CME does go through with listing bitcoins on their platform, there’s no guarantee that the technology won’t become obsolete and continue on its ridiculous rise.
Honestly, the bitcoin is very inferior to a lot of other cryptocurrencies out there. Some people have been involved in this industry for a decent enough amount of time to understand this. But there are also those regular folks who have no idea that there are over a thousand different cryptocurrencies on the market.
So, once normal individuals who aren’t as tech savvy as some of, become exposed to the inferiority of bitcoin, I expected the price to stagnate, while the value of other crypto assets goes up. Like Ethereum.
I mean yeah, the price might shoot passed $10,000 sometime soon, but that doesn’t mean that the tech is superior to the rest.
Superior Blockchains exist.
A lot of the general public isn’t aware of the fact that a lot of different Blockchains exist. This is because they are consistently marketed with the bitcoin blockchain by mass media. Many of these Blockchains can carry out transactions way faster than the bitcoin one.
Transactions on the Ethereum blockchain are much quicker than in comparison to bitcoins. Yet 1 ETH costs about $310, while a bitcoin is over $6000. To me that’s insane, but that might change in the near future.
And when that change happens, I expect the market share of other cryptocurrencies to shoot up as well, while bitcoin’s market share is slowly shaved away.
I would really appreciate it if you could leave your thoughts in the comments below.