Cryptographers concerned that Bitcoin is overshadowed by other cryptocurrencies
Cryptographers believe that Bitcoin is losing popularity to other cryptocurrencies that are becoming more popular because they offer innovative solutions to existing problems. Just last month, Ethereum had a market cap of $1.5 billion and a daily trade volume of $250 million per day , making it the second most popular cryptocurrency in the world, after Bitcoin, which has a market cap of $11 billion and a daily trade volume of $500 million per day.
A group of cryptography researchers published a paper detailing their concerns with the current state of the cryptocurrency market. In their research, they found that several new cryptocurrencies were more popular than Bitcoin on the darknet. They also found that a number of cryptocurrencies, including Bitcoin, have a reputation for being untraceable, but that is not the case for all.
Summary of the situation
– Bitcoin is losing value, but remains the most capitalized virtual currency.
– The hypothetical price system continues to motivate traders to buy altcoins.
Bitcoin has always been the most popular crypto currency, but that has changed in recent months. According to Bloomberg, cryptocurrencies are worried that altcoins will overshadow BTC. Some cryptocurrencies are performing and have a larger share of the cryptocurrency market than before.
In addition, altcoins like Dogecoin and Ethereum have also become popular in recent days. With the end of the Saturday Night Live show hosted by Elon Musk, cryptocurrencies are expected to rise in value. The only thing that wasn’t said on the SNL show, which was led by Tesla’s CEO, was that the company has invested $1.5 billion in bitcoin.
Growth of bitcoin versus other cryptocurrencies
Bloomberg reports that BTC’s capitalization has reached $2.48 trillion, although its dominance has fallen to 43%. For example, bitcoin had at 10. May has a capitalization of $1.04 trillion. According to Bloomberg, bitcoin dominated at the beginning of the year by 70%.
The site Coingape reports that a strategist at JPMorgan noted that low demand has led to the marketing of other cryptocurrencies. This is said to be the driving force behind the price froth that has hit altcoins relative to bitcoin.
Bloomberg suggests that the cryptocurrency market has been overwhelmed by government incentives. The analyst notes that unlike bitcoin, altcoins are falling rapidly, while BTC’s share is over 40%.
Altcoins have low prices but same growth
The value of altcoins is assigned to a mathematical level. Traders are attracted to cryptocurrencies other than BTC because of their low value. Although the low prices of cryptocurrencies are attractive, you should keep in mind that your loss rate is higher.
This method is known as the hypothetical price illusion. High-quality capsules can quickly drop to a lower grade. But many believe altcoins are growing faster.
Many traders think that the asymmetry of cheap cryptocurrencies could grow more than BTC itself, but they are wrong. This is why altcoins increase the amount of investment, but always maintain the same price. Another reason why altcoins are preferred is their market reach, which is also the case with bitcoin.
All these reasons force altcoins like Ethereum to reach historic levels in their capitalization. The cryptocurrency is up 442% from the 90% that bitcoin reached in a year. Ethereum differs from BTC in that it has a more advanced blockchain, but the value is lower.
Cryptocurrencies have their own independent value, which can be high or low, but not higher than BTC. Many new technologies try to hide the capitalization of bitcoin, such as NFT, but to no avail. The largest decentralized currency on the market may have its flaws, but it doesn’t plan on being knocked off its throne.
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