Hey everyone, I'm here to tell you that while the end of 2017 may be feeling like Bitcoin dominance is setting in, 2018 is the year that the other portion of the cryptocurrency market takes off. There is a trend in technology that allows new technologies to become adopted, but as the years have progressed, it hasn't been the first technology that gets there and starts strong in the marketplace that stays on top. Bitcoin has some serious limitations that are not yet known to the majority of the public and as these emerge and the benefits of other cryptocurrencies emerge, the market will move away from bitcoin saturation and you will see a more fleshed out marketplace where several altcoins start to eat away at the Bitcoin dominance. At the rate that news is spread and absorbed, I think we see this trend start as soon as 2018. So what are the limitations that I mentioned previously, well I've got a list for you, just check it out below:
- Proof of work - Bitcoin does not have a solution or work around to solve the mining problem that it currently has. Some cryptocurrencies operate through a proof of stake platform, which is considerably more efficient when the mining difficulty is as high as it is now.
- Power - The amount of Bitcoin mining going on right now requires more than some European countries. This is not a climate friendly solution and there will be those out there that start rallying against Bitcoin to protest this. If you look on twitter there is already some of this going on.
- Bitcoin right now is providing great returns on investments, but inherently, there is not a way to earn interest while your money sits in Bitcoin, so when it hits its peak investment zones, why would investors keep their money in bitcoin? There are cryptocurrencies out there that do offer a dividend/interest/etc that will become more mainstream as the word gets out. Check out SmartCash's SmartReward system for an example.
- It's just not the best technology out there or even the most developed upon blockchain (that would go to Ethereum). There are plenty of other altcoins that are faster, work on different proofs, provide more flexibility, anonymity or clarity, and application specific benefits.
In the long haul, Bitcoin may stick around, but its more likely to be a universal reserve coin, than a universally utilized coin. My firm belief is there will be altcoins that currently exist and are evolving faster than bitcoin that will overtake it and do so quickly. Look for 2018to be the year of the altcoin. I won't pump any of my investments, but the altcoins below are the ones I'm rolling with into 2018 and I'd be interested to hear your thoughts on bitcoin or even what altcoins you think are the future.
My Blockfolio:
BitBay (BAY)
Bytom (BTM)
Ethereum (ETH)
Iota
Neo
Request Network (REQ)
SmartCash (SMART)
Universa (UTN)
XtraBytes (XBY)
@cryptoambassador I completely agree with you - just wrote post about it as well!
I do believe Bitcoin is safe investment now, but without the biggest growth.
Limitations are clear... even when I wanted to transfer Bitcoin from Coinbase to Bittrex - I was amazed to see $16 fee.
I am big for Ethereum, Neo... and then one of privacy coins - Monero, Zcash!
You got yourself a new follower! Like your thinking, my friend!
Thank you, great to see a someone of like mind!
I state that Bitcoin is or was the first mover. And he done his job extremely well. Its really time for him to step back.
You can also check this Bitcoin analysis #13. I also recommend to go through links to the previous analysis to get bigger picture about Bitcoin price prediction.
There is also a futures untold story. And this is the last stage of Bitcoin and crypto currencies adoption.
New stars on the sky is for me BitShares, Steem and EOS with new technology and DPOS (delegated prof of stake) algorithm to secure blockchain network.
Brand new beast is ITOA with complete new blockchain solution.
From the oldies DASH had more potential as Ethereum, also Litecoin and Dogecoin from the classics are not for scrap.
Maybe also some other runners are in the race, we never know! The most important for me is that Governments money surveillance can be stopped with new solutions to free our-self's.
Resteemed your post!
Interesting read, but do you believe if the bitcoin bubble bursts will all other cryptocurrencies take a hit as well?
I don't think the other cryptocurrencies will take a hit in the long term. Short term, there could certainly be a bit of step back. However, there could be quite the opposite effect as well and we have seen this one over and over again in the cryptocurrency market. As bitcoin declines, the altcoins have inversely risen. I believe that would be the most likely outcome of a bitcoin decline. People seem to be catching on to the idea of a digital currency, so I think that thought will remain.