Since the inception of altcoins, there have been significant competition and a threat to the dominance of bitcoin. Recently, altcoins have experienced a major boom, and more is expected from them in the coming years. It is worth noting that ethereum, which is the main competitor of bitcoin, recently enjoyed a 10% gain in a day. According to analysts, this is massive growth worthy of the crypto history books.
Although bitcoin has enjoyed steady growth that is better than that of all other cryptocurrencies, at the beginning of 2019, it has now stopped. The digital coin is showing stagnation. This has worried financial analysts and investors alike.
The Rise of Altcoins
Even with the stagnation of bitcoin, its value, market capitalization and market share compared to other cryptocurrencies are all still strong. But the stagnation of bitcoin could be a problem if altcoins continue their upward movement. This means that they may surpass BTC or get as close as possible. There are so many reasons to believe that altcoins are on the rise.
Analyst predictions – according to expert analysis, the stagnation of BTC is a sign that investors are moving to altcoins. Consequently, popular altcoins like litecoin, ethereum and bitcoin cash will start to trade more frequently and gain greater popularity. This is expected to reduce the value of BTC.
Investors want to try something new – the main reason why BTC has dominated the market is that many investors have preferred it. Bitcoin has shown great stability in the market. However, investors now want to try something different. If you visit Nakitcoins website, you will see tips and steps on how to handle multiple cryptocurrencies.
Global economic forces – sometimes, it is hard to understand how market forces work. The cryptocurrency market forces are so complex that even analysts do not fully understand them. For now, their indicators have shown stagnation in BTC, and everyone is preparing for poor performance of the digital coin rather than trying to reverse it. Actually, many of them have now started to advise their clients to consider investing in altcoins.
What Awaits Bitcoin and Altcoins?
From the trend, BTC will definitely lose popularity as altcoins start to gain a name. However, not all of them will build a reputation; some will shine more than the others. Actually, ethereum is expected to be the front runner in challenging bitcoin.
Another expectation in the crypto market is that investors will hoard their BTC as they wait for it to gain more value before they can sell it. On the other hand, everyone will be running to buy altcoins as they start to perform even better. Demand will increase for some time until everything gets back to normal.
The stagnation of BTC is a big warning to investors. This is the time to have the best analysts and consultants at your side to avoid making costly mistakes. Trading altcoins, on the other hand, also necessitates very serious considerations.