Bitcoin will regain its market dominance in 2019 as altcoins lose their attractiveness to investors, according to a new report.
Bitcoin to Gain Dominance Again
The report was published by A.T. Kearney, an American global management consulting firm. In a report from Forbes, the report noted:
By the end of 2019, Bitcoin will reclaim nearly two-thirds of the crypto-market capitalization as altcoins lose their luster because of growing risk aversion among cryptocurrency investors.
It went on to say that: “More broadly financial regulators will soften their stance towards the sector.”
Courtney Rickert McCaffrey manager of thought leadership in A.T. Kearney s Global Business Policy Council, also noted that the “growing complexity of altcoins” would see Bitcoin’s dominance grow. This is highlighted by the recent hard fork of Bitcoin Cash, resulting in two camps: Bitcoin Cash SV and Bitcoin Cash ABC.
Rickert added:
Additional “hard forks” and the continued lack of consensus among developers about a path forward will further widen the chasm between Bitcoin as the most accessible and widely recognized cryptocurrency and the altcoin community.
The report comes at a time when the crypto market has been experiencing a tough few weeks. At the time of publishing, the number one digital currency is trading below $4,000, at $3,780, according to CoinMarketCap. Over the last 24 hours, it has dropped by nearly 5 percent.
Altcoins across the board have also suffered. BCH, for instance, is down by 12.17 percent over a 24-hour period. It’s currently valued at $133. In the past seven days, it has dropped by nearly 30 percent. It remains in fifth place, having been overtaken by Stellar.
Acceptance with an ETF?
Unlike the end of 2017, which saw speculation driving market prices, most of 2018 has been very different.
For many, though, they think the introduction of institutional investors and the entering of the first crypto exchange-traded fund (ETF) will help to boost prices.
Yet, in A.T. Kearney’s opinion, this is “ironic.” Speaking about this it said:
Ironically, for cryptocurrencies to see a third decade, the only viable path forward involves this acceptance by the international financial system that Bitcoin once sought to defeat.
For now, the market is down with one venture capitalist investor claiming that the industry is close to a “nuclear winter.” How 2019 unfolds remains to be seen, but for many, they think the market will see a surge in growth putting prices to new all-time highs.
Do you think Bitcoin’s dominance will grow as altcoins lose out? Let us know in the comments below.
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