Ted Rogers, the President of Xapo has recently spoken out about the looming crypto ‘recession’ that he believes is enough to totally wipe out 90% of the markets altcoins, making way for new low Bitcoin prices that in turn, will reap huge rewards for investors.
According to Coinspeaker:
“Rogers recently said that 90% of the digital currencies in the cryptocurrency market are poised to get wiped out while predicting an impending recession to take place in the altcoin space. Rogers says that this lapse will give crypto enthusiasts a huge opportunity to buy Bitcoins at a discounted rate.”
If 90% of altcoins are wiped out, the market capitalisation and dominance of Bitcoin will change dramatically, though we would expect that it still holds a majority over the other remaining 10% of cryptocurrencies. Moreover, Rogers prediction doesn’t really suggest which cryptocurrencies will remain after such a recession, other than Bitcoin of course.
Could the current rise in Bitcoin dominance be as a result of failing altcoins?
According to Coinspeaker:
“This lapse in the altcoins has resulted in the growing Bitcoin dominance in the entire crypto market. For the first time in 2018, Bitcoin dominance has crossed 50 percent mark. The altcoins sell-off has been triggered by the continuous price reduction in Ethereum, as most of the digital currencies launched through ICOs last year are based on the Ethereum blockchain network.”
See more for yourself, here.
Whilst this might not be the sole reason for the rise in Bitcoin dominance, it is of course worth thinking about. Bitcoin dominance can only continue to rise if its market cap increases, this can only increase through increased buying or, a reduction in competition so to speak. Failing ICO’s will play a big part in this, so actually the notion that failing altcoins is helping to bolster Bitcoins dominance isn’t so abstract after all.
If Rogers’ predictions are correct then, the removal of 90% of altcoins will see the price of Bitcoin fall, to be honest, a lot of hope will be lost too and indeed, this will present a low buy in price for Bitcoin. What we must consider though, contrary to his statement is this – how will Bitcoin climb back to $20,000.00 again, in a market with 90% less cryptocurrencies, popularity will be down, interest will be down and hope will be lost.
If this does happen (which it won’t, obviously), buying in at a low price would be the worst thing to do because realistically, from this point onwards the price of Bitcoin would only get lower.