• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Issuance Of Crypto Assets Will Push Bitcoin Lower, Claims St. Louis FED

Nick Chong by Nick Chong
2 years ago
in Bitcoin, Cryptocurrency news
Reading Time: 2min read
Issuance Of Crypto Assets Will Push Bitcoin Lower, Claims St. Louis FED
Advertisement

For nearly a decade, save for early-2018, Bitcoin (BTC) has ruled the crypto market with an iron fist — dominating its altcoin brethren. Yet, as blockchain technologies propagate, with tokens becoming more common and present than ever, analysts have claimed Bitcoin’s mostly-unquestioned hegemony will begin to come under fire.

Related Reading: Coinbase Gets Aggressive With Crypto Listing: Lists MakerDao, Golem, Zilliqa

Altcoin Flood May Put Downward Pressure On Bitcoin

The research arm of the Federal Reserve Bank of St. Louis has long been interested in cryptocurrencies. The arm of the United States’ central bank first published a paper on virtual currencies in 2014, and since then, the economic entity has continued to churn out analysis pieces on the crypto market.

In a recent piece titled “Whither The Price of Bitcoin?”, two St. Louis FED economists explain that the value proposition for BTC is bound between appreciating indefinitely, due to supply caps and swelling demand, and falling to zilch.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Using a hypothetical analogy involving Hamilton ($10) and Lincoln ($5) bills, it was explained that an increase in the supply of the latter would push the purchasing power of both banknotes lower. The entity wrote:

“The increase in the supply of Lincoln bills has led to a decline in the purchasing power of both Lincoln bills and Hamilton bills, even though the supply of Hamilton bills has remained fixed.”

While the researchers acknowledged that this scenario couldn’t be directly applied to digital currencies, they explained that altcoins may pose a threat to Bitcoin’s fiat value. With crypto assets getting issued left and right, with thousands of projects trying to capitalize on fleeting demand, the FED branch stated that BTC could get “depressed relative to where it would have otherwise been.”

Interestingly, the research group’s quip wasn’t baseless, as it drew attention to Bitcoin market dominance, specifically pointing out the measure’s collapse in recent years. And as such, the St. Louis FED noted that while BTC is unlike to capitulate to $0, a flood of altcoins may place “significant downward pressure” on the purchasing power of all cryptocurrency — Bitcoin included.

Crypto Report Begs To Differ

And while this somewhat bearish outlook is just theoretical, a report from A.T. Kearney, a multinational management consulting firm, expects for Bitcoin’s dominance to grow in 2019. Per previous NewsBTC reports, Kearney expects for the market capitalization BTC to “nearly” reach two-thirds of the aggregate value of cryptocurrencies. Citing reasons for this ~66% target, which isn’t out of the realm of possibility, the American firm purportedly stated that altcoins have “lost their luster” due to growing risk aversion tactics enlisted by retail investors.

Bitcoin fundamentals have also historically outperformed its counterparts on the lower rungs of crypto’s lengthy ladder. In 2018, the network saw adoption, fundamental growth, and development, with one Bitcoiner explaining that “by any metric [other than price], the system is improving and growing.” And with institutions focusing on BTC, maybe the asset’s prospects aren’t too dismal after all, in spite of the harrowing St. Louis FED report.

Featured Image from Shutterstock
Tags: bitcoincryptomarket
TweetShare15
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Is Amazon About to Accept Dogecoin? The Payment Use Case Explored

Is Amazon About to Accept Dogecoin? The Payment Use Case Explored

36 mins ago
Coinbase Addresses Future Revenue Concerns With Plans to Become Crypto’s Amazon

Coinbase Addresses Future Revenue Concerns With Plans to Become Crypto’s Amazon

13 hours ago
Cardano ADA ADAUSDT

This is Why Cardano Has Seen a “Huge” Spike in Developer Interest

15 hours ago
Sushiswap SUSHI

How SushiSwap’s New Products Could Propel It To The DeFi Top

17 hours ago
Terra LUNA LUNAUSDT

Why LUNA’s Recent Rally Could Be The Start Of A Bullish Trend

18 hours ago
Dogecoin Holds Strong Against Weekend Flash Crash, What is Happening?

Dogecoin Holds Strong Against Weekend Flash Crash, What is Happening?

1 day ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

Fly to the Moon and Win One of Three Tesla Cars with New Bitcasino Game, Live Crash

April 19, 2021

Cryptocurrency Exchange Gate.io Celebrates 8th Anniversary

April 20, 2021

eToro Adds Chainlink and Uniswap Amid Investor Surge For Crypto

April 19, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.