There has been debate for some time now about the future of bitcoin (BTC). On one side, there are bitcoin maximalists who believe that bitcoin will eventually whitewash the rest of the market, and emerge as the only relevant crypto. On the other hand, there are those who believe that the emergence of altcoins that are technically better than bitcoin will lead to its eventual irrelevance, and demise. While no one can really predict the future, it is easy to tell that bitcoin is not going anywhere. In fact, those who believe in its eventual monopoly might be right. Here are a few reasons why.
- Bitcoin (BTC) could eventually make privacy coins irrelevant
A good chunk of the cryptocurrency total market cap is made up of privacy-focused altcoins. However, bitcoin has the potential to make them irrelevant, thanks to coin mixers. Coin mixers work by shuffling the addresses between the bitcoin sending and the receiving address, thereby making such transaction pretty much untraceable. Considering that bitcoin is already well-known in the market as compared to the privacy coins, it then follows that in the long-run, most people seeking privacy will simply use bitcoin to make anonymous transactions. There is just no incentive for someone to use other coins, when bitcoin (BTC) can achieve the same end. The result is that the bitcoin network could see its market share grow significantly, and as market share grows, so will its value.
- Bitcoin is the ‘gold standard’ of the crypto market
Anyone who invests in crypto knows that there is a relationship between the price of bitcoin and the altcoins market. Altcoins generally tend to follow the price of bitcoin, which makes it easy to predict the general trend of the entire market by analyzing bitcoin. Even more noteworthy is the fact that anytime bitcoin performs so well, the altcoins market follows it, albeit slowly. That’s because people tend to push their investments into bitcoin since it is better known, and is more secure as an investment.
In essence, if bitcoin continues in its current trajectory of renewed growth, more money will flow into it, slowly increasing its dominance over the rest of the market. Prove to this is the increased attention that bitcoin is receiving now that it is close to the $10,000 price level. If it were to break above $20k, money would flow in huge volumes from the altcoins markets, thereby driving up its dominance, and rendering a good chunk of altcoins irrelevant. There is just no reason why anyone would speculate in some little known altcoin when bitcoin is more secure and offers similar, or even higher returns.
- Bitcoin can be used to create smart contracts
When most people think of smart contracts, the first thing that comes to mind are platforms like Ethereum, and many others altcoins are entering the market at the moment. However, most people don’t know that bitcoin can be used to create smart contracts. There have been successful Dapps created using bitcoin, one of them being Particl. The best thing about bitcoin smart contracts is that they offer the same functionalities as all the other platforms, but with the added advantage of unmatched security. Once bitcoin developers figure out a way to scale it, and they will, bitcoin will render most projects focused on the development of smart contracts irrelevant, and we all know what that means to its value.
With all these factors at play, it is not hard to see why bitcoin could end up making the rest of the market irrelevant, and emerge as the only relevant crypto. That’s why people who forecast that bitcoin (BTC) could get to $100k and above may not be exaggerating. The fundamentals are there for such a scenario.