American management consulting firm, A.T. Kearney’s report on cryptocurrencies reveals that Bitcoin will make a stunning comeback towards the end of 2019 and capture two-thirds of market capitalization.
The report indicates that much of the luster of altcoins would have washed away due to their high-risk characteristics, complexities such as the “hash wars” leaving behind the established players such as bitcoin to dominate markets and attract investors old and new.
Bitcoin to come back in 2019
The report by the consulting firm involved Courtney Rickert McCaffrey’s Thought Leadership department which explains the latest trend of “rising complexity in alternate coins” as an indirect driver for re-adoption of bitcoin by crypto-focused investors.
As part of the Global Business Policy Council, McCaffrey says, “Additional “hard forks” and the continued lack of consensus among developers about a path forward will further widen the chasm between Bitcoin as the most accessible and widely recognized cryptocurrency and the altcoin community.”
At the same time, other analysts such as Eclypses’ Steve Russo, EVP explains that not all alternate coins will “go away.” Some are expected to last out the tough times and emerge from the upheaval with their own “real” products leading to substantial revenue. On the other hand, much of the alternate coins which are of no “real value” will cease to exist.
Bitcoin’s worst ever year – 2018
For the most popular cryptocurrency, Bitcoin 2018 has not been a good year. After the spectacular high prices in December of 2017, this digital asset lost as much as 73% of its value due to the over-excitement arising out of altcoin proliferation. With so many coins now available “horizontally” there was an oversupply situation.
Into this game, the multiplicity of coins, there came another complication – ICOs the traditional start-up practice for raising funds lacked best practices leading to innumerable scams and landing to a big blow to the already dented reputation of cryptocurrencies and value of these non-fiats.
Another major development which impacted the survival of these coins was the low rate of adoption. And an important reason for bitcoin market correction towards the end of 2018 has been the “rise in interest rates,” thus stomping down on speculative investments.
“By the end of 2019, Bitcoin will reclaim nearly two-thirds of the crypto-market capitalization as altcoins lose their luster because of growing risk aversion among cryptocurrency investors. More broadly financial regulators will soften their stance towards the sector,” says the report. Besides, regulatory bodies from SEC in the US to the Chinese central banks are expected to soften their stance over the use of the non-fiats, said the report.
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