While bitcoin rallies a bull market, altcoins are left in the dust. Here’s why bitcoin dominance is still number 1, and what to expect from altcoin.
August 19, 2019 | AtoZ Markets - After a long, cold cryptowinter, bitcoin seems to be bouncing back, where most altcoins are still stuck in the deep freeze. But some skeptics wonder if they’ll stay in the cooler, or return for a second heat.
As the world focuses on the 2019 bitcoin rally, many professional traders seem happy to remind the twitter-sphere that altcoin is bound to catch up, most likely when the bitcoin bubble breaks.
However, with current markets and future predictions, bitcoin doesn’t appear to be slowing down. Continued acceptance and adaptation to the original cryptocurrency is something that is helping keep bitcoin strong. With incentives like trading platforms, like famous Bitvavo, that help newbies manage their bitcoin, the market is more accessible than ever. Dovetailing better access, experts and veterans are asking for better security measures and much-needed updates to address the latest influx of traders.
Despite these most recent big gains and the traders that have been brought in with them, bitcoin still remains a dominant power in the market. Not just because of its household recognition, or its original status as the first-ever crypto- but for a number of reasons. The truth is that bitcoin is unique amongst all cryptocurrencies and that is what has kept it and will continue to keep it, as a dominant force in the marketplace.
What Makes Bitcoin Unique
Many clambered to gain access in 2017 during altseason. Heralded by a period where altcoins and ICO’s had their day in the sun. However, despite these tides of glory, the gains seem to be short-lived. So what is it about bitcoin that sets it so far apart from the rest?
- Original Innovation
As bitcoin is the original cryptocurrency, the title has afforded it some serious perks. Bitcoin is a far more familiar name, has the software, hardware, and clientele to be ubiquitous. It’s also quite a bit more user-friendly. Despite the innovations and hardforks that other altcoins have brought into existence, the fact stands (for now at least) that people are just more comfortable with bitcoin. Pushing for innovation within the original as opposed to swapping to an alt.
2. Consistent Network
Even though altcoins have been proposed and launched since 2011, bitcoin still holds the biggest share of the cryptocurrency market. This market dominance, even though diluted by opposing altcoins, hasn’t been drowned out. It has the largest network of any other coin and is consistently available for trade, 24 hours a day, seven days a week.
3. Fully Decentralized
Bitcoin is the only cryptocurrency that is truly decentralized, meaning that there is no central authority or choke point. All other coins have a clear and present creator that moves within the market, creating hardforks and manipulating the function of the market. Bitcoin, on the other hand, stands by its original premise of immutability, making it incredibly difficult to readily manipulate markets and prices.
This is where bitcoin truly shines like gold. There is a finite amount of bitcoin in existence, and that amount has a tightly controlled release. This means that gains and speculations can be made with greater certainty, and the market is unlikely to become saturated or artificially inflated. While other ICO’s brought no market cap at all, or a sky-high cap that was related all at once with the ability to premine.
Why it’s Time to Buy
- Bitcoin usage is at its peak.
The bitcoin network is looking extremely healthy right now. The transaction rates and hash rates are at an all-time high, which means that people are really invested in trading bitcoin around, not just selling it off.
2. Low fees
Bitcoin fees and fees associated with bitcoin trading platforms are at an all-time low. Making it much simpler for people who don’t have experience in the market, to get in on the action. Trading platforms are great for any level of trader, as many will allow faster transactions, advice, and up to date live exchange rates.
3. The whales are starting to disperse
In 2017, the bitcoin market was dominated by a few big players, with only a handful of addresses owning the majority of circulating bitcoin. Trends show that those ‘whales’ are now starting to break up a bit. Now, over 19.4 million (+19% since 2017) addresses own more than $1 worth of bitcoin, and the mega coin holders are down 11%.
The next halving is upon us as well, which will help further decrease inflation rates as coins become more difficult to mine. Inflation is expected to drop from 3.77% to 1.8%, which will increase bitcoin’s exclusivity and appeal to newer investors.
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