Three months ago, in the post Bitcoin Will Eventually Become Obsolete I noted:
As the market cap increases we will witness a steady drop of BTC dominance and a rather crazy investment into altcoins that will overshadow May of 2016. It will be slow bleeding that will last over a year. I don't believe Bitcoin will serve any purpose in the future other than an antique for Bitcoin evangelists. Holding Bitcoin will be similar to keeping your wealth in a precious rare rock that weighs a ton. It will be cool to look at but hard to secure or transact with.
I am not a fun of speculation but I am an avid student of anthropology and human nature. Here is why this Bitcoin Reality unfolds.
Ask any Bitcoin oldtimer and they will assure you that the reason alt coins exist is to accumulate more Bitcoins. Thing is, this rhyme of thought implies that Bitcoin is the only legit game in town. The overall blockchain development through other projects is an elaborate scam that aims to fool new investors into funding the ones that got earlier.
The irony lies in the fact that opposers of Bitcoin think exactly the same as the maximalists do. The truth is much grayer and it implies economic realities neither side is ready to accept. Bitcoin is a novel, digital medium of exchange that offers more freedom and decentralisation when compared to traditional Fiat forms. It is not, not it can be the ultimate store of value.
The other hard truth is that the Blockchain and Blockchain-like technologies are here to stay. If you are a Bitcoin maximalist then you are betting against the inevitable future of internet 2.0. It is like being a fax-machine maximalist in the 1990's. It is the old story of "us" vs "them" that gets short sighted time after time.
A human being first and foremost seeks a medium of exchange that is fast, secure and private. Bitcoin used to be the case but this is no more true. Projects like Zcash and the upcoming BTCP do this much better than Bitcoin. What Bitcoin came to be is a store of value that it can now be manipulated through the FIAT market of Futures. Other coins will soon follow. Big hedge funds short a given coin, buy cheaper in exchanges, sell the custom top, short again, rinse, repeat. Child's game.
We are nearing 1 trillion market cap and things seem to be taking their own way. Centralised projects like Ripple are killing it since Banks have the ultimate hedge in this market while the masses buy the "cheap" coin (or whatever the big boys tell them). They can realistically bring the whole thing down if they wanted. With alts being so low in the market cap they can dethrone Bitcoin overnight. All they have to do, is use manipulation through the futures market and hedge like crazy into alternative currencies — which is exactly what is happening right now with institutional money.
Projects like X8 Currency can do hedging much better than anything else we have seen before. Backed by Gold, Fiat and the ingenuity of an A.I, one can use the token to be completely hedged against any market volatility. Think of it like DAI.
Bitcoin cannot be used as Hedge or store of value in a market where Fiat and Crypto come together in such an explosive way. Being deflationary and having a network effect becomes an old tale for newcomers. Most people want a cheap, fast way to transact that can have a potential uptrend. This is why we hear most newcomers hoping for a $3 ripple to be worth 3000 one day. Most people people have no idea what market cap is yet, since they are economically illiterate, they will still choose a coin with high velocity.
In the coming months we will see the market shake like never before. Bitcoin will most likely slow bleed while those penny coins that went parabolic over the last month will crash hard. I believe we will not see a total market collapse for at least another 6 months. What will most likely experience crash from these new rallying coins while value will continue to accumulate to the legit projects. Bitcoin will continue to be manipulated up until institutional money fill their bags. Then the real game begins.
This is mainly due to very high cost of BTC mining. Which cannot be sustain.
I'm still only dipping my toe into this crypto/blockchain stuff, but it seems fairly obvious that Bitcoin isn't going to play a very big role in the future. Not in its current form. Pioneering technology doesn't usually hang around long, and in "Internet years," Bitcoin is ancient.
It's already had its flaws pointed out, and other coins were built off of Bitcoin to address that. From that standpoint, it was obsolete as soon as the first altcoin came out. It's true that Bitcoin has been tremendously successful, but in a way, that blessing is also its biggest curse.
It's the first, it's the biggest, it's the most recognizable. That makes it a sacrificial footsoldier on the front lines. It's clearing a space for blockchain technology and a culture of decentralization, but it's doing it by stepping on all the landmines that were blocking the way.
Indeed. Couldn't agree more. The first one is usually the beta project. The pilot. Soon alternatives come to fill in the gap
I believe that there will be numerous niche that a certain coin will rule... as a currency, it cannot be Bitcoin, one crypto with better features will eventually topple it.
With smart contracts it will be a tough battle between Etherium and EOS, I will place my money on EOS though. With machine communications, IOTA is a clear winner nowadays...
Steemit is the one for sharing media platforms, but a lot will surely challenge it.
Many new technologies are still going to emerge from this. Many will offer promises, few are going to be able to deliver.
Yes most new coins and ICO's are just like high school projects with no substance to back it up. You have to separate the grain from the chaff. If we find one, then it is a treasure that we can build on for life..
Minds Tokens are comming to compete with Stemmit. I wrote about the fact 8 days ago here https://steemit.com/cryptocurrency/@greenmask9/minds-launches-crypto-tokens-in-1q2018-making-major-competitor-to-stemmit
Until they reveal the details of their crypto token and how it will be earned you can't really say it's competion. Other than steem clones (golos, yoyow) the only other aproach that has been attempted to merge social media and blockchain are just tipping platforms with a centralized solution for content storage (Yours network...for example).
Of course you are right. They may not succeed. But as an author for this site, I trust admins will do things as they should to form a competitor.
What's happening right now in crypto is a truly, once in a lifetime experience.
I believe we haven't seen the last of what Bitcoin has in store yet.
Wait, watch, hodl, and profit.
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Just to give you a heads up :)
Used your gif in this post and part of the payout is going to you for letting me use it!
https://steemit.com/steem/@ashleykalila/the-steem-blockchain-is-more-amazing-than-i-ever-even-realized
Bitcoin promises to come. there are some rumors right now. bitcoin will lose value, ethera will gain value. but I believe BitCoin will be much more valuable. @kyriacos
Perhaps but why do you think so?
80% of bitcoin miners are in China. But about 70% of the bitcoin's wealth is in the Americas. The shan market is under Chinese rule. Without the miner, the bitcoin is already over. But if America is investing in mines and taking control, Bitcoin can be valued. and ı upvoted to you :)
Alt coin is taking possesion ,thats good news for crypto market & bitcoin is the part of cryptocurrency,any how bitcoin is the king of cryptocurrencies
not for long
Bitcoin is banned in China and South Korea, which, in my opinion, supports the fact it will not dominate the cryptomarket. I dislike the fact graphic cards are more expensive because of miners, so I bet on Bitshares for now. IOTA and Etherum are also strong right now.
It all depends on supply and demand. Mining will be a thing of the past. I am not sure if Proof of Stake is sustainable either.
If Proof-of-Work and Proof-of-Stake are not sustainable, then what consensus algorithm type do we have left? Will it be game over for the blockchain then?
Forking has made things even difficult for this king!
yeap
good post. I agree.
what do you recommend investing ?
I am not an investment advisor.
I personally believe in the blockchains of blockchains
Cosmos, Wanchain, Kyber
I also believe 0x will dominate the decentralised exchange market.
X8 is just another shit token created to make money off the stupid sheeple that buy into it..
There is no room for paper money in the future.
that is true. Paper money will become obsolete
Interesting analysis.
What is the "real game", in your opinion?
Institutional money issuing futures on all important coins/tokens
Interesting analysis ! Thanks for your effort !!
What coins do you think will be the first to overtake bitcoin then? Will it be ripple or etherium bitcoin cash or something that has yet to really explode?
I wonder why dash doesn’t do much better in the markets with such a low fee and good reputation. Ive started to keep a lot of my funds in it because it’s cheaper to move around. I don’t have thousands to play with so a bitcoin fee isn’t really reasonable to make transactions with. If they manage to fix the crazy fees it can stay on top, otherwise, I give it a few months.
I think Ethereum will dominate once Cosmos comes out. I am talking in the 5K range
Dash is a scam.
Why is it a scam?
Dash isn't scum, it redirects through the Tor browser making it one of the most secure and likely to do well coins.. It's huge on the deep web, and the deep webs much bigger that the clear-net.. You guys are to opinionated to make any real money.
I’m new to this topic but what I was asking myself since the day I heard about it and still do is the fact that everythings value is just worth the value people give it. So it’s the peoples beliefs that gives crypto currencies (and by the way every other product in the world) it’s value.
What if the day comes when the number of people that believe in crypto currencies will decrease massively? Or since this platform and DTube for example are getting serious competitors for really influential companies in the world and they want to stop the whole thing?
Won’t crypto currencies then be a massive worthless blockchain of solved mathematical solutions and even the cotten my Euros are printed on will be worth more? Could someone help me with that?
Well, pretty much everything works like that.
The day will come and then a massive correction will follow. Cryptocurrencies and tokens without actual usage will die out. The few remaining ones will become the next Amazon and Apple.
Either this or regulations by governments corrupted by the big companies that have enough power and money will declare cryptocurrencies as worthless. Don't ask me how they could do this but I'm confident if they want to they will find a way.
Yeah, @kyriacos its cool to air your opinion. Things might go the other way round with bitcoin.
You correctly and well written. But the fear persists in the fact that the BTC undermines the confidence of the inhabitants of the entire technology of blockchain.
it will slowly become irrelevant
A lot of people are involved in this process. People who are not professional investors. These people will carry negative information.
Once the Lightning Network is implemented, BTC will soar far and beyond what it is now with various independent nodes being open for free market transactions. I believe this might even phase out LTC.
So, it is good to invest in paper less money or not ? Means is there any future or just a myth ?
New view bro i also just thinking about it well
It is good knowing that Blockchain and Blockchain-like technologies are here to stay. For newbies like myself just getting a hand of cryptocurrency, i hope the tide drives in our direction as we keep learning.
Thanks for sharing
Hello the subject published in your post I like a lot I am not a specialist in the matter I consider that the bitcoin as all currency gets its highest price range and is maintained, I do not know what the final destination would be like but it will be a long time to see such result for now let's enjoy its benefits
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Seems like a credible screnario. I take it that it would be smart to keep holding the technologically solid coins that now occupy places from the third to the twentieth or so while dipping into the penny coin market for short periods of time. I took my money out of Bitcoin in mid-December. Until then I kept it in Bitcoin as it was rallying so hard.
I would say, though, that it would be smart to keep an eye on new coins that are part of an application using the blockchain to solve a specific real world problem. But the problem is that there are no established economic models for calculating the fair value of such coins in case the applications that they are used in achieve certain levels of market penetration.
Cryptos were created to solve a problem and Bitcoin was solving the problem of double spending. Now many cryptos are into market that aim to solve a different problem such as sia coin and storj solve problem of decentralised storage. Golem solves problem for computation energy. Now double spending is not the real problem. The current generation cryptos are looking to solve the problems on scalability and internet of things. So I agree with you @kyriacos
Very nice
My honestly ignorant question would be:
How do I determine what a "legit" project is?
Ethereum has been marketed for the "smart contract" aspect. I've read some reports that it hasn't lived up to the sales pitch.
I had seen Ripple as an alternative to the US Banking industry (and US Government cudgel) SWIFT system. But now I'm seeing it likened to the Deep State's crypto.
How does one separate the hype from the legit projects?