Categories: CryptoNews

Bitcoin’s Market Dominance Is Decreasing, and That’s OK

I wanted to take the time to write a quick response to many of the sensationalized pieces that have been coming out about Bitcoin and cryptocurrency lately. Cryptocurrencies have been on everyone’s mind lately, and even though there are clear signs of more widespread adoption, the headlines still seem similar to before. Bubble concerns and fears of criminal use are commonplace, but a newer one I’ve been seeing is “Bitcoin is losing its dominance in crypto’s market cap.” To that I say “good,” and here’s why.

Bitcoin dominance index decline is a good thing

Contrary to what these headlines would have you believe, if any asset were as dominant in the market capitalization of traditional markets, there would be public outcry and trustbusters at the door. That degree of dominance in other asset classes would be intolerable, and for good reason. Such monopolies mean these assets, companies, and products can get lazy because there is no rush to improve. While I deeply love Bitcoin, it is far from perfect. Anyone saying otherwise is being willfully ignorant.

However, Bitcoin and cryptos in general are a completely new asset class that play by their own rules. They don’t behave like ordinary assets, and their markets don’t close or stop trading because of some bell. As such, even when new coins enter the market every day, rather than stealing money from Bitcoin or other alts, they simply seem to add to the industry’s overall market cap. We saw this with the Bitcoin Cash and Gold forks. They didn’t take value away from Bitcoin, but rather made their own. Mind you, this does not mean that there is not fierce competition among altcoins.

Related Post

In fact, when Ethereum and Ripple were both clawing away at each other to fight for the #2 spot in all of crypto, I kind of wished that something could begin to approach Bitcoin that way. Markets thrive when its users have ample and meaningful choice. Choices have to be more than a random ticker from a basket, so different assets and companies all scramble to offer some sort of innovation. It is this kind of competition that makes markets move.

This is why, even if only slowly, seeing Bitcoin starting to lose that dominance is not bad. To the contrary, it is exciting. It means that there is competition among various cryptocurrencies all vying for users based on new features and other innovations. While I still believe Bitcoin will be king for at least my entire life, I would not be surprised if we see its market dominance continue to slip. Again, I think this is a good thing.

So the next time you see a headline from a media outlet claiming that Bitcoin is losing its foothold in the cryptocurrency marketplace, remember that it is because there are now opportunities elsewhere in cryptocurrency, and not because people are losing faith in Bitcoin.

Dariusz

Dariusz has been closely following the world of cryptocurrencies since 2014. He has been somewhat of a crypto-evangelist, trying to educate more people on the exciting realm of cryptocurrency.

Share
Published by
Dariusz

Recent Posts

Best Altcoins to Invest in Today: Qubetics Sets the Stage for Blockchain’s Future as Bitcoin Hits $108K and Litecoin Soars

The cryptocurrency world has always been a hotbed of innovation, attracting both seasoned investors and…

8 mins ago

Dogecoin Millionaire Predicts This Undervalued Altcoin Could Match DOGE’s 2021 Gains

Dogecoin's 2021 rally was a historic one, turning ordinary investors into overnight millionaires. This magnificent…

39 mins ago

Qubetics Presale Skyrockets to $7.5M as XRP and Arbitrum Lead Best Altcoins for Exponential Returns

The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…

1 hour ago

Over 300K Users Actively Mine Crypto On BlockDAG’s X1 Miner App While BNB Bulls Eye $3K; What’s XRP’s Price Target?

The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…

2 hours ago

Best Crypto Presale To Buy Now: Rollblock Delivers For Holders With New License, Record Sign Ups and 7000+ Games

Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…

5 hours ago

Polkadot And Uniswap Gearing For Post-Christmas Jump As Rollblock Raises $7.4 Million in Presale

While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…

6 hours ago