According to the report, there is basically a finite amount of money that is interested in investing in bitcoin and cryptocurrencies.
If so, why has the the market cap of cryptocurrencies as a whole fallen from $700 billion a year ago to less than $130 billion today? If altcoins are sucking the life out of BTC, why have they not collectively increased in market cap?
They point to the market dominance of bitcoin slowly dwindling over it's history. In short snippets like 2017 there will be spikes and anomalies, but the trend is lower for its dominance and that according to the FED is keeping a lid on its price. Intuitive I know. :)
Bitcoin dominance has been increasing during this bear market. I suspect that as crypto snails along toward mass adoption, the alts will begin to take the majority of the market share once again. I hear @tonevays say the opposite (that the bear market isn't over until bitcoin pulls away from the alts).
If LN is successful, then Tone may be right. The fact of the matter is that most of the rest of the alts suffer from heavier centralization and are not nearly as secure. I think bitcoin is the Yahoo! of internet finance, but it remains to be seen which one becomes the Google. However, I don't believe that we will have just one currency. Andreas Antonopoulos has said that money is an expression of value and therefore like a language. There will be an English of crypto, but the others will not all go away.
Worst case scenario is that some banker coin becomes the Google of internet finance and we submit to centralized control. That's a recipe for book of Revelations consequences.
I could see that as pretty likely to be honest. I mean facebook for example has billions of dollars that they could launch their own coin and blockchain with, which they could then airdrop on their billions of users. It would instantly be one of the market leaders.