“Everyone wants to earn a lot of money with the smallest possible input; this could involve high risks.”
More than a year ago, I wrote a vast number of articles about how I imagine the future of the cryptocurrency market. In of my writings, I explained why I think that Bitcoin (BTC) is determined to be a success in the long run. Those who read my articles remember that I based my reasoning on two things:
- Maximum Supply: this is a kind of guarantee that the increase of the demand will cause a rise in prices.
- The importance of the mining interest in a PoW system: today Bitcoin is a technological innovation with centralized power centers. The biggest miners deliberately follow a financial strategy; in which, they can constantly increase their interest on the market.
Of course, beside these two basic arguments, I mentioned some other reasons too, but in my opinion, these two are the most important in regards to Bitcoin truly having a future. Those who panicked in 2018 because the price of one unit of BTC fell to approximately about one-sixth obviously did not take in consideration the above-mentioned arguments. The reason for the downward trend was clear in those times. In the long run, the market was not able to handle the bubble generated by the ICO’s, and because of this, Bitcoin plummeted tremendously.
During those times, only a few had thought in a long term since the profit provided by the ICO’s was within easy reach. So, almost everything was moving towards the easier resistance. Of course, it resulted in the price crash we all remember. What is the difference between the present price and the price of those times? There are enormous differences, and these differences represent the stability in the long run. I explained several times previously that I don’t like the approach that introduces an altcoin as the “conqueror” of Bitcoin. These marketing attempts haven’t worked in the past. Even Ethereum could not be a replacement for Bitcoin since the purpose of Ethereum is totally different from that of Bitcoin.
Previously, I have read countless opinions about the possible vision in which altcoins shall gain back their strength parallel with Bitcoin. Regarding this opinion, I stated earlier that it won’t happen. It turns out I was right! During these days, when I’m writing this article, Bitcoin has reached the 35 000 USD mark. Ripple was barely able to climb back to 0,23 USD, and also Ethereum is only able to move around the 1000 USD mark. What does this mean regarding the future? It means a lot; so much that it is hard to summarize it briefly, but I’d like to highlight a few aspects.
- Bitcoin will thrive, and the altcoins together will be able to move forward only to a small extent. Thereby, the market will be even more bipolar which means that the market cap of Bitcoin could be, in itself, multiple times bigger than all of the altcoins (this is already visible). The rise of Bitcoin shows that the corrections are making the altcoins proportionally weaker. In other words, even if the altcoins are getting stronger due to the rise of Bitcoin’s price, in reality, all altcoins are getting weaker. Of course, these numbers could be approached from different angles, but on the real value side, Bitcoin is the winner of the market growth. Obviously, this doesn’t mean that it is not possible to realize bigger profit with an altcoin or a token than with Bitcoin.
- Bitcoin will be knocked down in order to let the altcoins strengthen further; letting them catch up in their lagging. It would be wise to ask the miners about this idea. In my opinion, the tendency shall remain the same. In other words, everything will be on the rise, but the best will be Bitcoin. In short, I don’t think that this scenario shall occur.
- Starting from the logic of the previous point but with a totally different objective, it is also conceivable that even 25–30% of declines could happen with Bitcoin exactly for displacing the weaker ones. It is natural, but I think it is not imperative. The market has already gone through a great purification. The present DeFi projects are able to create a much bigger value than the ICO’s of 2017. Of course, DeFi’s also have weak points which were detailed in one of my previous articles.
Overall, it can be said that stepping up as a real alternative to Bitcoin is not only a naive idea but also a harmful one. It is in everyone’s interest to have a successful Bitcoin in the long run. Of course, from the speculative point of view, there is no harm if there are corrections in this course. We, at the ILCOIN Development Team, still believe that we don’t have to think about how we can compete with Bitcoin but rather how can we create a market in which Bitcoin is not competitive.
Presently, Ethereum has the most extensive network regarding the number of alternatives, and we are not ignoring this fact either. A well-functioning DeFi network can create countless new opportunities. Such doors could be opened where Bitcoin cannot compete since the “minimum technological requirement” does not allow it. We develop ILCOIN exactly with this purpose since both the VR games market and the opportunities given by the DCB are representing such an approach; giving a predestinated role in contrast with Bitcoin.
The role of cryptocurrency use is getting more and more important, which already has some visible signs. One could not just look past the advantages which a blockchain-based network can provide. Obviously, the actual interests go against a decentralized network in many ways, but I think this process is still unstoppable. However, it is everyone’s own responsibility to participate in the crypto revolution undertaking all of its advantages and disadvantages.