Why does bitcoin's dominance decrease each day?
May 1, 2019 (Investorideas.com Newswire) Ever since Bitcoin has come to existence it has seen a number of ups and downs while facing criticism and receiving appreciation from crypto enthusiasts. Before we get dwell deep into the topic let's have look at what history has to say regarding the price, popularity, volatility and hence, dominance of Bitcoin.
Bitcoin is highly volatile
History has witnessed three Bitcoin price milestones that surprised probably almost everybody. On November 29, 2013 after the fall of Mt.Gox, Bitcoin price skyrocketed to an astonishing value at that time of US$1,124.76. After two years in November 2015 it reached the mark of $2200. Finally, it crossed the astronomical mark of $17,900 on 15 December 2017. These three dates were the most important turning points for Bitcoin that only prove how much this cryptocurrency is volatile. Unfortunately, how it often happens, the spotlight could Bitcoin hold only for so long and on the fifth of February 2018 it dropped again to $7000. After that Bitcoin has been subjected to even higher volatility and it is traded around $5000 today.
Down of other cryptocurrencies - tough competition
Bitcoin has ignited the creation of series of other cryptocurrencies and some of them are so advanced that they have the potential to leave Bitcoin behind in the race for crypto dominance. But being the most popular cryptocurrency with highest market capital has some advantages and the spotlight cannot be so easily taken away.
Though the competition has already tried. Take Ethereum for example, one of the most powerful contenders, that could possible one day overtake Bitcoin. Reasons? Bitcoin has some limits that does not allow this cryptocurrency to expand as much as it possible could. First of all, there is the problem with transactions, they are costly and it takes a lot of time to process them (about 10 minutes). That is a big deal. In addition, Bitcoin has no other use than just as a tender. Ethereum, on another hand, has huge potential to turn around the technology world with its versatile platform that allows you to deploy smart contracts, building other cryptocurrencies and much more. Even tech-giants like Microsoft and IBM are working on the Ethereum blockchain. In summary, Bitcoin is in an industry where its competition is in certain ways so much ahead that the currently world's biggest cryptocurrency is placed in a difficult spot and it has to do everything it can to sustain its popularity, so people would not start looking above and behind Bitcoin.
Concussion - Is Bitcoin losing dominance because of popularity?
The dominance of bitcoin is strictly associated with its popularity. It is, however, not that Bitcoin would be losing it. As a matter of fact, the Bitcoin popularity is increasing with each day. It is, however, because other cryptocurrencies are gaining it as well (perhaps even faster) and more importantly due to new cryptocurrencies that have joined the market. Money in the crypto sphere is now divided in between more subjects (cryptocurrencies) than ever before. That is the reason why it might look like Bitcoin is losing dominance...
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