King Bitcoin: leading cryptocurrency
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Bitcoin is also known as "King Bitcoin" in the cryptocurrency market. It dictates the direction, performance magnitude and volatility of all other cryptocurrencies (altcoins). When you talk about cryptocurrencies to an individual who knows nothing about cryptocurrencies, they will inevitable reply: "Oh yes Bitcoin...” It seems that Bitcoin has become the name for the cryptocurrency market. People have heard so much about Bitcoin in the media (not cryptocurrencies) that some really think that all cryptocurrencies are Bitcoins.
New crypto-traders starting off on cryptocurrencies nearly always start by buying Bitcoins. They think they will become rich by buying Bitcoins and that they will open only one account on one cryptocurrency purchasing platform. But that's without considering that they will discover the cryptocurrency market. It won't take them long to open an account on a cryptocurrency trading platform, deposit their Bitcoins there, and then exchange them for other cryptocurrencies.
The cryptocurrency market is clearly not a mature market, it is very volatile. The market is handled on certain platforms by individuals who know nothing about finance, trading, or even cryptocurrencies
It will take time, understanding, acceptance, housekeeping*, control** and a touch of regulation for the cryptocurrency market to finally become a mature market.
My personal opinion: the question is: "Are investors really trying to make this market mature?" I’m not sure... The only thing I am sure of is that in a mature market, Bitcoin might no longer be in 1st position, and there would be a completely different classification of cryptocurrencies by capitalization.
* Housekeeping: getting rid of all SCAMS
** Control: prohibiting blockchains from initiating anyICOs, no matter what.
Yes. Clearly yes.
Remember that Bitcoin is an "open-source" cryptocurrency; this means that it can be duplicated, improved, and better adapted. There are reasons why so many cryptocurrencies emerged as soon as Bitcoin had its first successes.
Let’s also remember that Bitcoin is already more than 10 years old. It is good for its notoriety and its development in the "real world" (look at ATMs distributing Bitcoins). But it is also over 10 years behind technologically, compared to new cryptocurrencies and blockchains. There is a reason that Bitcoin has already created two "forks" with Bitcoin Cash and Bitcoin Gold. The Bitcoin community is divided faced with the emerging problems of this Cryptocurrency becoming "archaic".
And last but not least, Bitcoin is a victim of its success! It was not designed to be used this heavily. As a result, the Bitcoin blockchain is saturated. Whereas a few seconds used to be enough to transfer between Bitcoin wallets, it now takes several hours (or even days depending on network saturation). Bitcoin’s transaction speed is a key factor that made Bitcoin as successful as it is, but now that it is obsolete, has that been incorporated into the price of Bitcoin? Clearly not!
I will end by saying that Bitcoin is a good cryptocurrency (by its use and notoriety), but it is a bad blockchain. Conversely, one could take the example of NEO which is a bad cryptocurrency (because it is not used commercially in the"real world" as an "electronic currency"), but an extraordinary blockchain (1,000 times more powerful than Ethereum). It remains to be seen whether these two cryptocurrencies can be compared. They do not have the same purpose at all.
NB: the CEO of NEO announced that NEO could well dethrone Bitcoin within a year or two.
Why isn’t this "NB" impossible? As I write this article, Ethereum is capitalized at half of Bitcoin, but NEO could be compared to the "Chinese Ethereum blockchain" which is 1,000 times more powerful. The dApps on the NEO blockchain have just started, and NEO is way behind the Ethereum blockchain at this level; a sated level, NEO could then capitalize at a lot more than Ethereum and Bitcoin.
The question here is not whether you believe in Bitcoin or not; it is meant for cryptotraders: if Bitcoin lost its place as "King Bitcoin", or if it disappeared, do you think your investments in altcoins would be better off?
It is clear that Bitcoin’s real fall (or disappearance) would generate a fall of all cryptocurrencies in the short / medium term. But aren't you tired of seeing your investments on certain cryptocurrencies that have nothing to do with Bitcoin, dumbly following Bitcoin’s movements?
Bitcoin, the first choice for new crypto-traders
New crypto-traders starting off on cryptocurrencies nearly always start by buying Bitcoins. They think they will become rich by buying Bitcoins and that they will open only one account on one cryptocurrency purchasing platform. But that's without considering that they will discover the cryptocurrency market. It won't take them long to open an account on a cryptocurrency trading platform, deposit their Bitcoins there, and then exchange them for other cryptocurrencies.
Bitcoin in an immature market
The cryptocurrency market is clearly not a mature market, it is very volatile. The market is handled on certain platforms by individuals who know nothing about finance, trading, or even cryptocurrencies
It will take time, understanding, acceptance, housekeeping*, control** and a touch of regulation for the cryptocurrency market to finally become a mature market.
My personal opinion: the question is: "Are investors really trying to make this market mature?" I’m not sure... The only thing I am sure of is that in a mature market, Bitcoin might no longer be in 1st position, and there would be a completely different classification of cryptocurrencies by capitalization.
* Housekeeping: getting rid of all SCAMS
** Control: prohibiting blockchains from initiating anyICOs, no matter what.
Could Bitcoin lose its throne?
Yes. Clearly yes.
Remember that Bitcoin is an "open-source" cryptocurrency; this means that it can be duplicated, improved, and better adapted. There are reasons why so many cryptocurrencies emerged as soon as Bitcoin had its first successes.
Let’s also remember that Bitcoin is already more than 10 years old. It is good for its notoriety and its development in the "real world" (look at ATMs distributing Bitcoins). But it is also over 10 years behind technologically, compared to new cryptocurrencies and blockchains. There is a reason that Bitcoin has already created two "forks" with Bitcoin Cash and Bitcoin Gold. The Bitcoin community is divided faced with the emerging problems of this Cryptocurrency becoming "archaic".
And last but not least, Bitcoin is a victim of its success! It was not designed to be used this heavily. As a result, the Bitcoin blockchain is saturated. Whereas a few seconds used to be enough to transfer between Bitcoin wallets, it now takes several hours (or even days depending on network saturation). Bitcoin’s transaction speed is a key factor that made Bitcoin as successful as it is, but now that it is obsolete, has that been incorporated into the price of Bitcoin? Clearly not!
I will end by saying that Bitcoin is a good cryptocurrency (by its use and notoriety), but it is a bad blockchain. Conversely, one could take the example of NEO which is a bad cryptocurrency (because it is not used commercially in the"real world" as an "electronic currency"), but an extraordinary blockchain (1,000 times more powerful than Ethereum). It remains to be seen whether these two cryptocurrencies can be compared. They do not have the same purpose at all.
NB: the CEO of NEO announced that NEO could well dethrone Bitcoin within a year or two.
Why isn’t this "NB" impossible? As I write this article, Ethereum is capitalized at half of Bitcoin, but NEO could be compared to the "Chinese Ethereum blockchain" which is 1,000 times more powerful. The dApps on the NEO blockchain have just started, and NEO is way behind the Ethereum blockchain at this level; a sated level, NEO could then capitalize at a lot more than Ethereum and Bitcoin.
Are you for or against Bitcoin on the cryptocurrency market?
The question here is not whether you believe in Bitcoin or not; it is meant for cryptotraders: if Bitcoin lost its place as "King Bitcoin", or if it disappeared, do you think your investments in altcoins would be better off?
It is clear that Bitcoin’s real fall (or disappearance) would generate a fall of all cryptocurrencies in the short / medium term. But aren't you tired of seeing your investments on certain cryptocurrencies that have nothing to do with Bitcoin, dumbly following Bitcoin’s movements?
