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Bitcoin will lose its leadership status …

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Bitcoin will lose its leadership status ...

Bitcoin will lose its leadership status and will be supplanted by altcoins – opinion
CONTENT

  • The market share of bitcoin is now about 66%.

  • The development of fundamentally new technologies can give impetus to the development of other cryptoassets.

  • People just think they need Bitcoin..

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Bitcoin will lose its leadership status ...

Bitcoin dominance has been declining over the past nine months. Perhaps in a few years BTC will lose its leadership among cryptocurrencies.

Until the beginning of 2017, bitcoin (BTC) was the undisputed leader among digital currencies. However, no matter how incredible it sounds now, it is possible that in a few years MTC will be ousted from the pedestal of the most important digital asset..

For more than one year, Bitcoin has confidently held the lion’s share of the cryptocurrency market it has captured, keeping competitors at a distance. It could be called the only digital asset that managed to designate its real presence in the market. However, then Ethereum appeared, and at the end of 2017, an altcoin boom burst out, painfully hitting the hegemony of BTC and reducing its market share to about 37%..

Currently, according to Tradingview.com, bitcoin forms about 66% of the digital currency market, but one fact stands out. The MTC dominance index has been steadily declining since September 2019. Read our latest technical analysis Investing in and trading in cryptocurrencies is impossible without technical and fundamental analysis. Despite the popularity of both of these tools, the intraday … More Bitcoin Dominance Index is possible here.

Bitcoin will lose its leadership status ...

As the lead developer of Blockchair Nikita Zhavoronkov [@nikzh] writes on Twitter, this downward trend may be further developed.

“I have a strong feeling that this is the last time we see the level of MTC dominance above 66%. Further, this indicator will decline. As a result, in 5 years bitcoin may lose its title of the main cryptocurrency, “he said..

In a voluminous tweet, Nikita explains his position in detail..

  • So, he reminds that earlier the competitors of bitcoin were only its pathetic imitators who were not able to bring any new value or offer new functionality. However, now there are such networks as Ethereum (especially given the prospects for the launch of Ethereum 2.0) or Monero, which have a number of radically different properties and characteristics that are not inherent in the Bitcoin network, for example, smart contracts or an increased level of privacy.
  • Nikita further notes the advantages of the proof-of-stake (PoS) consensus algorithm over the protocol proof-of-work (PoW), which is used on the Bitcoin network and has one fundamental flaw. It creates conditions in which miners are not interested in the price growth and at the same time they are afraid of a sharp fall in the asset rate.
  • Another obvious problem with bitcoin, he considers its insufficient scalability, at the same time, he does not consider Lightning to be an effective working solution, and the main disadvantage of the Liquid network is that it is overloaded with the requirements of the KYC procedure due to its focus on centralized exchanges. This is where all the developers’ ideas regarding scaling end, Nikita summarizes.
  • Bitcoin will lose its leadership status ...
  • He further mentions insufficient speed conducting transactions on the network and high commissions for operations with bitcoin. As a result, ordinary users lose money, and companies lose potential customers, he said..

Nikita is sure that in fact, people are not trying to buy specifically bitcoin, but some kind of cryptocurrency that can solve their financial problems in the context of the depreciation of traditional money.

Bitcoin is in demand only due to its first place in terms of market capitalization and relatively mainstream status compared to other altcoins. Meanwhile, neither the long-awaited halving, nor the aggressive policy of injecting money into the world economies went to his advantage, Nikita draws attention.

Do you agree that Bitcoin will not always be the main cryptocurrency in the world? What altcoin can squeeze it out? Share your opinion in the comments and join the discussion in our Telegram channel!

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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