Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Bitcoin’s Rising Dominance Might Cause Altcoins To Bleed Out Beyond Rescue

By Osher DeriCryptocurrencyJul 30, 2019 04:29AM ET
www.investing.com/analysis/bitcoins-rising-dominance-might-cause-altcoins-to-bleed-out-beyond-rescue-200446832
Bitcoin’s Rising Dominance Might Cause Altcoins To Bleed Out Beyond Rescue
By Osher Deri   |  Jul 30, 2019 04:29AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
XRP/USD
+5.58%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
+7.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EOS/USD
+5.58%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LTC/USD
+9.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ADA/USD
+8.24%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

{{|Bitcoin}}’s Rising Dominance Might Cause Altcoins to Bleed Out Beyond Rescue

Bitcoin is the first cryptocurrency in the market, it is the most valuable cryptocurrency by trading price and market capitalization, it is the most popular cryptocurrency, and it is regarded as the most secure blockchain.

The dominance of BTC over Altcoins as at January 1, was a modest 52.39%; however it has grown steadily and it is currently around 65.2%. Bitcoin’s resilience in holding its value makes it the de-facto safe haven cryptocurrency as altcoins continue to bleed out in the face of increasing regulatory concerns.

A quick glance at the cryptocurrency market shows that there are more than 2,400 coins. Some of the oldest altcoins such as Litecoin, Ethereum, Ripple, Stellar, and Monero were designed to fix some real/imagined inadequacies in Bitcoin’s philosophy and source code. Most of the latter coins are variants of the same idea; and the market has seen the rise and fall of a thousand other shitcoins and scam coins.

However, as Bitcoin continues to establish its dominance, its performance often has a correlative effect on altcoins. This piece examines the growing gap between the Bitcoin and altcoins with a view to determining if Bitcoin is enough to deliver cryptocurrency as the future of money.

The Gap Between Bitcoin And Altcoins Widen

BTC/USD
BTC/USD

In the year-to-date period, the price of Bitcoin has more than tripled from around $3,800 in January to around $13,000 on July 10 before it suffered a reversal in the last few weeks. Many reasons have been advanced for the end of the crypto winter, the subsequent, rally and the recent correction. The influx of new money seems to birth positive sentiments but regulatory concerns about Facebook’s Libra coin seems to be dampening the enthusiasm.

Nonetheless, the performance of Bitcoin so far this year contrasts sharply with the crypto winter of 2017 as seen in the chart below. It is also obvious that Bitcoin is outperforming some of the altcoins that were supposed to be better alternatives in terms of philosophy, network speed, and features.

Crypto Prices
Crypto Prices

Ethereum and EOS for instance are supposed to leverage smart contracts to power dApps. IOTA is promoting the DAG Tangle as a better alternative to the Blockchain, and Cardano wants to unlock the mass-market use of Blockchain with a scientific philosophy and a research-first driven approach. However, while Bitcoin has mostly dwarfed the performance of altcoins, many traders and investors are still optimistic about the prospects of Altseason 2.0.

Bitcoin-Powered Smart contracts

The last nail in the coffin of altcoins might be the arrival new projects that are leveraging Bitcoin’s network to build real-world solutions, products, and services. IOV Labs, originally RSK has introduced RSK as a second layer on top of Bitcoin's network as a platform for developing and running smart contracts. IOV Labs believes that it can utilize RSK to synthesize more value from Bitcoin’s blockchain by enabling smart contracts in the Bitcoin network for increased value and functionality. RSK is optimizing for scale at up to 100tps by using probabilistic verification, fraud detection, and Blockchain sharing techniques to reduce storage and bandwidth without sacrificing decentralization.

RSK is an example of the type of a secure smart contract platform that can deliver the Internet of Value especially with its hashing power of over 35% on the RSK Smart Contract Network. In addition, the RSK Infrastructure Protocols can enable broad interoperability and faster time-to-deployment to bridge the gap between blockchain technologies and to enhance the mass-market adoption of Blockchain technology.

However, while traders might be quick to discountenance the potential effects of RSK; miners and pools who share their processing power over a network will find significant value in RSK and RSF Infrastructure Framework (RIF) RIF.

More so, developers and enterprise users could potentially like how RIF is bringing to life the next generation of dApps through an all-in-one, easy-to-use platform might also make developers acutely interested in exploring its Open Blockchain Infrastructure Services.

Is the promise of altcoins exaggerated?

From a trading perspective, the promise of altcoins appears to be exaggerated because the cryptocurrency market is maturing beyond hype and it is gradually being driven by substance. To further compound the woes of altcoins, they didn’t record any significant gains following the latest crash of Bitcoin from around $13,000 to the $9000 range.

In fact, the price of altcoins seems to have fallen lower after Bitcoin tanked; hence, it is becoming increasingly unlikely that altcoins will build up the momentum to emerge from Bitcoin’s shadows, especially if the BTC dominance rises above 70%.

From a technological standpoint, many altcoins have largely overpromised and underdelivered based on the lofty ideals in their whitepapers. Ethereum is struggling with scalability issues and there are divisions within its rank on how best to progress – sounds like a repetition of Bitcoin’s history. More so, many altcoins have been unable to deliver real-world application of their Blockchains and the utility value of their tokens have been hijacked by traders who want to make speculative profits.

Bitcoin’s Rising Dominance Might Cause Altcoins To Bleed Out Beyond Rescue
 

Related Articles

Bitcoin’s Rising Dominance Might Cause Altcoins To Bleed Out Beyond Rescue

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email