“Newer cryptocurrencies are clearly ‘better’ in all respects, technically and user-friendly,” says cryptocurrency expert Jan Lamser of Fintech’s Red Eggs company, noting that the power of bitcoin remains extreme.
“In the long run, the relative strength of bitcoin to the remaining cryptocurrencies is likely to decline, the current hashrate (simply the computational power of the bitcoin network – editor’s note) however, it does not signal a decline in interest, “adds Lamser.
The global value of all existing bitcoins is at the threshold of $ 880 billion, which corresponds to 39.5 percent of the market value. Until five years ago, the dominance of bitcoin, with a weight of almost ninety percent, was absolutely crucial.
“Bitcoin was a pioneering project, but unfortunately it does not have a strong enough ecosystem around it. It began to develop around platforms with smart contracts such as ethereum and solana, “says Štěpán Křeček, an economist at BH Securities.
Investors began to perceive the area of cryptocurrencies related to decentralized finance or NFT. “In addition, Bitcoin is significantly lost in the gaming environment, where, unlike other cryptocurrencies, it is not widely used. It is technologically unsuitable for this purpose, “recalls Křeček.
From last year’s peak cryptocurrency market in November, bitcoin lost a third of its value, while the entire market weakened by only a quarter. The depth of the fall of bitcoin thus significantly exceeded the rest of the cryptocurrency market.
–
–
In recent months, a new generation of cryptocurrencies, often associated with the use of blockchain technology in the online gaming industry, has been able to grasp part of bitcoin’s position. Cryptocurrencies also scored simply improving the existing parameters of the blockchain environment. “The declining share of bitcoin is a process that took place quite significantly throughout last year,” emphasizes J&T Banka analyst Pavel Ryska.
According to him, the phenomenon is also related to the growing number of alternative cryptocurrencies. While at the beginning of the development of virtual currencies in 2017, about a thousand coins were in circulation, the current number of so-called altcoins exceeds sixteen thousand, according to the Coinmarketcap server.
“When the number of new cryptocurrencies to which money is allocated grows, it naturally puts pressure on the market share of the older ones, led by bitcoin. Some leading alternative cryptocurrencies are undergoing faster innovations than bitcoin. In other words, their blockchain enables more applications, which attracts more informed and experienced investors, “adds Ryska.
– .
