Since BitcoinMarket.com went live in March 2010, cryptocurrency trading began, with Bitcoin being obviously the first digital asset to be bartering on the internet.
Over the past 10 years, we saw many altcoins, or simply cryptocurrencies other than Bitcoin, pop-up, grow, and fall, if not completely evacuated due to the degree of unregulated markets operating until 2016 when the first regulations started to show up and influence this totally new industry.
Today, even though there is a tiny probability to cross a scam ICO or an exit scam performed by a major exchange, Bitcoin is the #1 cryptocurrency since forever and while it keeps growing, altcoins seem to be having a “bad season”.
We’re going to analyze and go through the possible reasons that hold alternative digital currencies to Bitcoin back, and see if there’s is a point in the future where they’ll gain the chance to shine again, as they did in the big pump of 2017-18, even for a brief period of trades.
Altcoins in zoom
Just in July 2019, most altcoins had a decline of up to 40%, compared to Bitcoin which managed to sustain its position with only a 2% loss the exact same period.
The table below shows us the three-month change for Bitcoin and some major altcoins, and as you can see, besides Binance’s native currency Binance Coin, which underwent a token burn that significantly affected its price per unit, most altcoins are plumping into a -20% to -45% abyss.
According to recent researches conducted by various crypto-watchdogs, we see that all of them conclude to the fact Bitcoin’s dominance in the digital asset market is attributed to its longevity and institutional trust.
In addition, most experts agreed that altcoins might be in a “bad season” at the moment, but there is definitely a chance to recover in the near future, making them an attractive investing field.
For example, take a look at IOTA, which is trading at around $0,23 at the moment. An Internet-Of-Things (IoT) token, tailored for the machine economy, that reached an all-time high of $4,96 on December 2017.
Compared to Bitcoin, if IOTA reaches it’s all-time high once again, without even surpassing it, we get a 1700% surplus, while if Bitcoin reaches its all-time high with its current price it would generate just a tip over 100% in profit.
While most people are focusing on the price per unit or market cap of a digital currency before they invest, they tend to forget the fluctuation which actually makes them money, making some altcoins being at their best position so far for either a short or macro investment.
Bitcoin is the father of all digital coins
According to AltSignals experts, one of the main reasons Bitcoin is performing so well is the fact that it’s the father of all digital coins. It has been trading for the past 10 years and therefore 85% of Bitcoin has been mined, making BTC a currency with increasing demand and less supply, which is simply translated in certain new price levels.
When the first visionaries of a digital economy joined the Bitcoin ride back in 2010, there were no alternatives, and until the first wave of altcoins was ready-to-go, Bitcoin was already classified as a virtual currency by the U.S. Treasury.
Today, in most cases, Bitcoin, alongside Ethereum are the main coins you have to purchase in order to enter an altcoin market.
That is quite interesting as Bitcoin is considered as an old technology compared to the advantageous protocols that were created with altcoins that learned from Bitcoin’s problems.
Yet, Bitcoin manages to dominate the market with its position regardless of it being technologically outperformed by many other digital currencies, due to the fact it was the first one, and it still is.
So when’s the blooming season for altcoins?
Experts from TradeSanta and AltSignals, say that we’re about to experience a stock market crisis, where traditional investors will join the Bitcoin ride to secure their earnings, boosting its price to new all-time highs.
At the same time that would mean lower prices for altcoins, which on their turn would help the Bitcoin train get pumped with coal.
More specifically AltSignals analysts believe that the altcoin pump will be moved closer to the beginning of 2020, where Bitcoin earning will be shared between fiat, Ethereum, and other altcoins depending on the situation.
Athena Education analyst Joel Kovshoff says that some altcoins with real use-cases and revenue generation models will be making a comeback in the next three to four months, while most altcoins that simply copy Bitcoin’s code will probably never make it back to their all-time highs.
Overall, most experts agreed that if an altcoin has a real value well-crafted by its respective company it will succeed in the future, but if an altcoin is the only thing that gives value to a company we should probably stay out of the way of its downfall.