Bitcoin is the most important virtual currency in the market, and has always been. It is known as the king of the cryptocurrencies because it rules the market. And indeed, when it falls, all the other virtual currencies follow the trend. And the same happens when it grows up.
But Coinage CEO, Chad Pankewitz, said that Bitcoin is the reason why the market is not working as it should be. He suggests that the market should move away from Bitcoin and start to operate independently.
Every single month there is an important number of tokens created and new projects trying to enter the market. But the market is strongly tied to Bitcoin, and this is something that does not seem to change in the short or mid term.
Moreover, it is possible to see that there are important currencies like Ethereum (ETH), Ripple (XRP) or Litecoin (LTC) that have their own strong projects and could not be dependent on Bitcoin’s price. At the same time, Pankewitz believes that if the market moves away from Bitcoin stable currencies like Tether would be used much more than now.
Additionally, he said that it is difficult for investors to enter the market when they compare dollars with decimal numbers in the value of Bitcoin. At the same time, he explained that the volatility is a big problem.
Other currencies like Litecoin, Ethereum or Bitcoin Cash could be real competitors to Bitcoin, but they were not able to surpass it in market cap. Ethereum, Litecoin and Bitcoin Cash (BCH) have a shared market capitalization of $61.5 billion dollars, while Bitcoin (BTC) has more than $100 billion dollars market value.
At the moment, the market is in a bear trend since the beginning of the year, and Bitcoin is being traded under $6,000 dollars, touching its lowest point in months.