One analyst believes that most forms of crypto will die out, leaving only one or a few to dominate the market.
Bitcoin has lost a whopping 77 percent of its overall value since reaching nearly $20,000 last December. At press time, it’s trading for just over $3,700, and many other cryptocurrencies have joined in bitcoin’s descent.
Crypto is Continuing Its Trek Down
Ethereum, for example, was trading for just over $1,400 last February, though at the time of writing, one ether token is worth less than $80, having lost more than 90 percent of its value. EOS has also lost virtually all its gains from the previous year, while bitcoin cash – once trading for nearly $4,000 – is now struggling at a meager $165.
Jon Markman – a financial writer for Forbes – credits cryptocurrencies’ drops to something not widely covered by other analysts. He comments that developers have worked hard to create new currencies, when in fact, currencies should not be created at all.
Bringing new cryptocurrencies into the mix has ultimately led the digital asset space into something of a dot-com era. As more digital assets enter the space, the more saturated it has become. Some altcoins serve less purpose than others or are less established, and thereby simply crowd up the industy without contributing much to its legitimate growth. He claims that the crypto space is “overly supplied” with new assets that simply have no place among high-ranking assets like bitcoin.
But others are taking things further. Bill Harris, the former CEO of PayPal, claimed last August that bitcoin was something of a scam, and four months later, he’s sticking to his guns. He believes bitcoin is a pump-and-dump scheme, which may have contributed to the sudden price falls following the end of 2017. Promoters ultimately pushed bitcoin further than anyone expected, and right when it reached its peak, things began to fall quickly. These promoters allegedly began dumping their stashes, and investors where left taking the brunt of everything.
Time to Clean House for One
Markman doesn’t quite agree with this. While he believes that most altcoins will ultimately disappear, he’s all for the idea of having a single digital currency used by nations. He also believes that eventually, organizations like the Securities and Exchange Commission (SEC) will “round up” the fraudsters infecting the cryptocurrency space and put them away for good, allowing currencies like bitcoin to take over completely.
If this happens, bitcoin will become far more valuable than it is today. Despite everything, maybe HODLers still have the right idea after all.
Will bitcoin eventually be the last cryptocurrency standing? Post your comments below.
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Author: Nick Marinoff