Being the first of the Cryptocurrencies and the progenitor of all the cryptocurrencies ever invented, Bitcoin dominance has continued in the crypto-space without any real challenger.
This, of course, has made the name “Bitcoin” to become synonymous with the Crypto space.
This has permeated the world view on tokens to the point that whenever the latest crypto technology news and articles are written and developed, they all focus on one cryptocurrency: Bitcoin!
This, of course, has made many to suspect foul play. So much so that the regulators in different Countries think that the market is being intentionally manipulated to gain from the dominance of bitcoin price news daily.
There are several factors responsible for this however, most of which are unintentional.
They shall be discussed serially.
Cryptocurrencies and their Technologies are Still New
The truth is that cryptocurrencies are still new and as such, their adoption rates aren’t unlike when the internet appeared on the scene during the nineties. The difference is that cryptocurrencies are much faster.
So, it then means that the first of the Cryptocurrencies is being held to so much scrutiny that it will take some time before people can fully trust them as a whole.
This, of course, goes without saying that the pseudonymous nature of cryptocurrencies also is a contributing factor.
People can’t trust something that remains hidden even if those things are hidden even if only partially.
It is only now that ways and means of transactions tracking to major exchanges and bulk wallets that have helped trace the proceeds of crime that the crypto space is receiving the long-overdue attention.
These days, people are searching for cryptocurrency-based news portals and other related search terms on search engines now that the crypto space is gaining traction.
But Bitcoin still dominates due to it being the first and the newness of the technology.
Too Little Exposure of the Altcoins
Most of the other cryptocurrencies referred to collectively as the altcoins haven’t received the kind of exposure that Bitcoin has.
This, of course, is because many of the cryptocurrency evangelists have kept a continued focus on Bitcoin and Bitcoin prices. A such, the altcoins have either been left in the dark or have received only partial recognition due to their unique nature.
As such, Bitcoin dominance has been maintained. This isn’t great for the crypto space as the crypto space needs attention even on the little guys.
Perception drives reality and this hasn’t worked out in favor of the altcoins. At least not yet.
This period is supposed to be the season when the crypto-space blows up but the crypto space remains held to ransom by a few who want the focus to remain on Bitcoin alone.
The Influence of the Whales
Crypto-whales can be defined as entities (both personal and institutional) who cause exponential volatility in the cryptocurrency markets.
These whales have continued to do their best to ensure that the focus in terms of prices remains on Bitcoins.
This, of course, ensures that Bitcoin still dominates the crypto space.
It makes for good profits when the whales act in concert with each other, however, that kind of influence is starting to wane as institutional investors are starting to take notice of the crypto space.
So, whales are on the decline but their influence still lingers.
The 2017 Speculative Bubble
The year 2017 was a wild one for all cryptocurrencies. This was when the crypto space finally got everyone’s’ attention.
So many cryptocurrency projects were introduced and many people invested in projects that turned out to be scams.
On top of that, the presence of so many speculators also created the now infamous crypto bubble which burst when Bitcoin prices reached $20,000.
The presence of scams, the lack of regulation and the speculative confidence that the investing public worldwide had in Bitcoin helped to reduce confidence in Bitcoin prices once things went south.
Because Bitcoin had a core following the prices didn’t flatten out entirely and a better understanding of how digital assets work has brought the crypto space back to life.
Lack of Technical Knowledge on Cryptocurrencies
At this early stage when cryptocurrencies are still trying to find their footing, many people still have no understanding what cryptocurrencies are about especially on a technical level.
Most at best have limited their knowledge to Bitcoin and the knowledge that surrounds the cryptocurrency.
As such, most people will only congregate around technology that they know about.
This is another factor that has ensured Bitcoin’s dominance in the market.
Most of the available solutions for cryptocurrencies are centered around it.
And people will only work with it on that basis.
Too Much dependence on Blockchain Technology
While blockchain technology holds tremendous potential to change the world, most Bitcoin fans have forgotten the principle that created blockchain technology in the first place: transparency, confirmation, and consensus.
Other technologies have emerged not to compete with blockchain technology but rather to complement it.
Such technologies include but aren’t limited to Chainlinks Oracle for cross-platform middleware and Ripple Labs Inc’s Ripple Protocol Consensus Algorithm.
Although this factor is by far the least of the reasons why Bitcoin’s dominance is still extremely high, the association between Bitcoin and blockchain technology in the mind of people is exactly what propels them to stay within Bitcoin’s circle in the first place.
Only one factor can change Bitcoin’s dominance and that factor is time.
For now, though, the crypto space is on the edge of an exponential explosion!