According to a recently published A.T. Kearney report,
“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.”
Growing Altcoin Complexity
Bitcoin’s dominance could be helped not only by softening regulatory stances but also by the growing ‘complexity’ of altcoin value offerings.
“Our prediction that Bitcoin will regain its dominance is supported by the ever-growing complexity among altcoins, most recently demonstrated by the “hash war” that occurred in the Bitcoin Cash ecosystem,” – Courtney Rickert McCaffrey, manager of thought leadership in A.T. Kearney’s Global Business Policy Council.
“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.”
This won’t necessarily mean that all altcoins will disappear, however.
“Some survive and grow up to be explosive enterprises, that have real products and generate real and substantial revenues. altcoin will follow somewhat that same pattern,” – Steve Russo, Executive VP Eclypses. “Those that are whimsical and have no real value will vaporize, while the real ones will not only survive but thrive over time. “
Levels of mass-adoption for both Bitcoin and altcoins remains problematic. According to an insightful survey by Gallup/Wells Fargo, just 2% of investors say they currently own Bitcoin, and less than 1% plan to buy it in the near future (July 2018). While most investors say they have no interest in ever buying Bitcoin, about one in four (26%) say they are intrigued by it but won’t be buying it anytime soon. The results were from a poll based on U.S adults with $10,000 or more invested in stocks, bonds or mutual funds, either within or outside a retirement savings account.
If and when the ‘killer’ blockchain app arrives, coupled with better regulatory stances for ETF approval, markets should see these adoption rates improve, and therefore significant price increases. Fidelity Investments latest announcement to expand its institutional cryptocurrency portfolio asset platform being offered to industry clients (clients worth up to $7.2 trillion in assets) will certainly bring a significant injection of capital, not to mention legitimacy, to Bitcoin.