Bitcoin dominance has risen to an all-time high this year. At its current levels (66.7%), many wonder if altcoins will rise again. Many factors are responsible for the recent fall in the dominance of altcoins.

bitcoin dominance

They shall be considered serially.

Altcoins Failed in 2017 and 2019

Many projects within the cryptospace had become “white elephant” projects in 2017 and 2019. 2017 gave the world the crypto-bubble. Many of the projects that existed then turned out to be scams. 2019, however, was a return from crypto winter. Many of the altcoin projects still hadn’t gained any traction.  The levels of trust that the world had concerning cryptocurrencies had fallen.  As such, instead of the use of Initial Coin Offerings as a way of raising funds, we now have Initial Exchange Offerings (IEOs). The requirements for an IEO listing are even stricter than those of ICOs.

People still regard altcoins as a failed concept due to their high failure rates.  As such, investors still flock to Bitcoin as a safe haven for their assets.

Many Altcoins 2020 are Centralized

Decentralization is a key concept as far as cryptocurrencies are concerned.    Many of the altcoins that have appeared on the scene are extremely centralized. As such, the trustless concept can’t be implemented. Independence of the cryptocurrency token on the ledger can’t be assured.

This is a worrisome situation. It has also led regulators to take strict measures against many cryptocurrency projects. Altcoins themselves don’t need to be centralized. The greater the decentralization, the greater the chances of success of the cryptocurrency project.

The reason for this is the Byzantine General’s problem. This is the foundation for the existence of the public ledger system. The concept of not trusting the next guy but the independence of the public ledger has contributed significantly to Bitcoin’s dominance of the cryptospace so far.  Investors love the allure of the concept and as such have bought into it.  No single entity or group of entities can control Bitcoin prices.  This will prove to be true again further down the line.

Altcoins are Subject to Market Manipulation

Altcoins due to their centralization are subject to manipulation by the markets. This has been proven severally within the cryptospace.  As such, market manipulation for Altcoins is highly likely.  This has also led to many “pump and dump” schemes that investors in altcoins involve themselves in regularly.

Altcoins have Created new Uses for Cryptocurrencies

Thanks to the altcoins, cryptocurrency tokens now have all sorts of uses. From logistics to education, fashion to travel. The altcoins have enabled new ecosystems to be created. It has also allowed for new entrants to the cryptospace.  We may not yet see the use-case scenarios and their effectiveness, but we will see that in the coming decade.

Altcoins provide humanity with more reasons for people to trust cryptocurrency tokens. Without trust, there can’t be any form of transaction value. As such,   the introduction of altcoins enables transactions to go through.

Bitcoin faces Serious Competition

Bitcoin as a first-generation cryptocurrency is already having some serious competition when it comes to popularity. The main issue, however, is how this popularity contest will end.   The ultimate challenge to Bitcoin’s dominance is something that many people will consider when coming into the cryptospace.  This won’t be the final deciding factor that determines their decisions. Bitcoin’s competition may change the way we look at the cryptocurrency community. Altcoins are that competition.

Altcoins though as a matter of functionality solve problems. These problems must also be real-world problems. Otherwise, they will also follow the dustbin of history like other technologies that have followed this course.

Developers must also understand that its neither how beautiful the code is nor what it can do that matters these days. It is rather about what problems the code can solve. This is how the Altcoins shall rise again.

Will Altcoins Rise Again in 2020? 1
About the author

Christopher is the Blockchain/DeFi Editor for E-Crypto News he also writes frequently about Crypto Gaming and Gambling. He is the author of the book "Profitable Cryptocurrency Gambling and Gaming: A Complete Guide." A content developer, Crypto-Enthusiast, and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 42,769.00
ethereum
Ethereum (ETH) $ 2,931.17
cardano
Cardano (ADA) $ 2.36
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 356.98
xrp
XRP (XRP) $ 0.949874
solana
Solana (SOL) $ 142.34
polkadot
Polkadot (DOT) $ 31.13
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.210893
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 42,769.00
ethereumEthereum (ETH)
$ 2,931.17
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 519.60
litecoinLitecoin (LTC)
$ 154.18
bitcoinBitcoin (BTC)
36.506,34
ethereumEthereum (ETH)
2.501,96
tetherTether (USDT)
0,853570
bitcoin-cashBitcoin Cash (BCH)
443,51
litecoinLitecoin (LTC)
131,60
bitcoinBitcoin (BTC)
31,321.88
ethereumEthereum (ETH)
2,146.64
tetherTether (USDT)
0.73235
bitcoin-cashBitcoin Cash (BCH)
380.53
litecoinLitecoin (LTC)
112.91

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin42,457 1.04 % 5.71 % 10.10 %
Ethereum2,907.5 1.16 % 6.54 % 14.79 %
Cardano2.320 1.76 % 0.40 % 1.17 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Binance Coin353.36 1.40 % 6.62 % 12.95 %
XRP0.9429 1.08 % 4.62 % 11.68 %
Solana140.47 1.51 % 3.56 % 4.82 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.43 % 0.19 % 0.16 %
Dogecoin0.2090 1.29 % 6.04 % 13.26 %

bitcoin
Bitcoin (BTC) $ 42,769.00
ethereum
Ethereum (ETH) $ 2,931.17
cardano
Cardano (ADA) $ 2.36
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 356.98
xrp
XRP (XRP) $ 0.949874
solana
Solana (SOL) $ 142.34
polkadot
Polkadot (DOT) $ 31.13
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.210893