Bitcoin (BTC) will consolidate its dominance in the cryptocurrency market next year. Bitcoin hash rate rise will destroy altcoins, said Tone Vays, a veteran trader.
23 December, 2019 | AtoZ Markets – Tone Vays warned that alternative coin traders are facing even worse conditions as 2020 begins because of Bitcoin hash rate rise.
BTC Hash Rate Growth
The fundamental factor for Bitcoin's success would be the strength of the hash rate. Since the BTCUSD hit its highest level in December 2017, the hash rate has increased by 800%, which Vays says "incredible."
The hash rate refers to the overall computing power that miners choose to devote to validating the Bitcoin blockchain. Despite falling prices, interest and competition among miners continues to grow, which also resulting in a more secure Bitcoin network. He said:
"Show me another s**tcoin that has this kind of hash rate growth."
Vays, who is not convinced of the potential role of alternative cryptocurrencies, went on to predict that Bitcoin's Liquid sidechain product would eventually "destroy" the utility of competitors. Bitcoin hash rate rise will destroy altcoins.
More specifically, these are Ethereum, EOS and Cardano, all of which have altcoins to support their platforms in the top twenty cryptocurrencies by market capitalization.
Vays has not always been so clear about the outlook for Bitcoin. In response to a media interview covering investor Tim Draper's $ 250,000 Bitcoin price forecast, he said the bullish forecast had made it "more bearish".
In contrast, he told the crypto-media network BLOCKTV on Sunday that a price of $ 50,000 BTCUSD by 2023 was still reasonable.
Bitcoin Dominance in 2020
Tone Vays said in the latest episode of his Trading Bitcoin YouTube series on 22 December:
"One of my predictions is that Bitcoin dominance in 2020 will reach 85%."
According to Tone Vays, Bitcoin is further strengthening its market position. It already achieved this year's dominance, is currently 69% compared to 51% in January. As a percentage of its position in January 2018, Bitcoin's dominance is up 87%.
For him, in the long term, the figure could extend to see BTC except usurp altcoins:
"I think Bitcoin dominance has one more push. It went from around 50% to 70% in 2019. I think we still have 10-15% of Bitcoin to gain on s**tcoins, because it continues towards 90% and 95%, then 98%."
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