Throughout 2017 and 2018, many altcoin-advocates pointed to Bitcoin’s lack of transactional speed as a reason why it would be usurped by other smaller alternatives. “Speed” naturally became a selling point of many altcoins.
That being said, this was not enough to generate any type of investor interest or extreme utilization.
One prominent Bitcoin investor is now noting that this is due to a misinterpretation of what Bitcoin’s true purpose is. He contends that its utility and adoption does not stem from it being a payments rail, but rather its “ultimate use-case” as a digital gold.
That being said, he believes that the hundreds of altcoins launched with an aim of contesting Bitcoin’s status as the benchmark cryptocurrency are “useless” and “slowly dying” – while also forecasting that BTC will soon have 99% dominance over the aggregated market.
Rise of Altcoins Premised on Misconceptions of Bitcoin’s Purpose
Altcoins were all the rage in late-2017 and early-2018, with investors pouring money into these tokens with hopes of garnering massive returns.
Although the use-cases put forth by many of these crypto tokens were wide in their breadth, one common theme is that they all marketed themselves as being faster than Bitcoin.
It is true that many altcoins process transactions faster than BTC, but one prominent investor and advocate is noting that this hasn’t given rise to any of these smaller tokens because they misinterpreted BTC’s primary use-case.
Max Keiser – an early investor in the benchmark cryptocurrency and the host of the Keiser Report on RT – explained that its ultimate use-case is being a gold 2.0 rather than being a payments rail.
“Hundreds of alt-coins were launched claiming to be ‘faster’ than Bitcoin. Flash forward to 2020: The world wakes up to BTC’s ultimate use-case as Gold 2.0 and *not* as a payments rail. Those hundreds of coins/ hard-forks (BCH) slowly dying in zombie land, more useless than ever.”
Max Keiser: BTC to Have 99% Market Dominance
Keiser also believes that this misconception will prove to be deadly for altcoins, with the vast majority of trading volume, capital, hash power, and attention heading towards Bitcoin.
He stated that at some point in the near-future, BTC will have absolute dominance over the crypto market.
“Alt-coin and hard fork supporters are fact-resistant. I just let the market do my talking for me. Bitcoin’s market cap, hash rate, and volume all heading to 99% of ‘crypto’ market,” he said.
Because Bitcoin’s dominance over the aggregated market only sits at 65% presently, a mass exodus from altcoins alone could be enough to boost it to fresh all-time highs.
Featured image from Shutterstock.