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Despite the drawdown in the price of Bitcoin (BTC) — which some analysts say would result in a change of tides for altcoins — BTC dominance continues to tick higher. As of the time of writing this, the key market metric is approaching 70% for the first time in years, implying that once again, almost all cryptocurrency inflows are making their way into the leading digital asset.
Related Reading: Bounce Off $9,000 Could End Bitcoin Price Correction; Here’s Why
While this metric has seen stellar growth in the past six months, there are many analysts currently expecting for Bitcoin’s grip on the entire cryptocurrency market to continue, despite the technical developments made with these projects.
Bitcoin Dominance to Continue to Mount Higher
On Sunday, prominent Bitcoiners from around the world convened in downtown Los Angeles to talk about the cryptocurrency in an event hosted by Russell Okung of the LA Chargers. Okung, the latest prominent all-star athlete to have pledged his allegiance to the cryptocurrency cause, was looking to spread the good word of Bitcoin.
You know @RussellOkung is bringing the HEAT today to educate folks on Bitcoin at @Bitcoinis_ ? pic.twitter.com/VhxqrsFTmB
— Pomp ? (@APompliano) September 1, 2019
And who better to explain the crypto market’s dynamics than Anthony “Pomp ” Pompliano?
Halfway through the BitcoinIs_ conference, the former Silicon Valley employee turned cryptocurrency investor and podcaster, took to the stage to talk about a number of subjects: why Bitcoin matters, how the fiat system is defrauding a majority of Americans today, and the future of altcoins.
As someone that has been closely following the deterioration of altcoins, this writer’s interest piqued when Pompliano talked about this subject matter.
Sticking with the hardline Bitcoin-only line that was being touted at the event, the Morgan Creek Digital partner stated that Bitcoin dominance will only continue to gain steam. While Pompliano didn’t mention an exact target, he expects his firm’s index to naturally float towards a Bitcoin dominance of 95% from the 80% where it stands today.
Analysts have attributed Bitcoin’s outperformance to everything from its similarities to gold and the potential it has to act as a hedge in the current macroeconomic climate to the fact that it remains one of the only cryptocurrency projects will an actual use case and community.
This comment comes shortly after he stated that he believes “almost every single altcoin will eventually be worthless because there will be no liquidity and they will get delisted from exchanges.”
Case in point, data shows that the altcoin market remains very illiquid. Arcane Crypto found that if you measured a cryptocurrency’s dominance by weighting the market capitalization of all cryptocurrencies against their trading volume, “Bitcoin’s market dominance is pushed well above 90%.”
Altcoins Have Value(ish)
While Pompliano and his partners are expecting for altcoins to continue to lose steam against Bitcoin, he did note that cryptocurrencies besides BTC have a use case. An unorthodox use case, but one nonetheless.
Related Reading: Altcoin Market Is Failing to Produce Utility, Only Bitcoin Can Become Money
Responding to inquiries about why there are assets like Ethereum, Litecoin, Bitcoin Cash, and Monero in Morgan Creek Digital’s digital asset fund, which provides mainly high net-worth individuals and institutions with exposure to cryptocurrency, Pomp stated:
“We built our business on the idea that the hardcore Bitcoin believers have adopted this following cycle: they understand Bitcoin, go to understand enterprise blockchain, tokenized securities, XYZ or whatever, and then they’re back to Bitcoin.
We think the best way to get them in is to say that ‘although you may not understand the differences between the tokens, just take what the market has given you.'”
Featured Image from Shutterstock
