Can another crypto ever catch Bitcoin?
It is only just over a decade ago that Satoshi Nakamoto unleashed the first cryptocurrency. No one could have ever predicted the juggernaut that this was to become. Even Nakamoto must be in slight awe of the fact that his Bitcoin (BTC) is now worth over $60,000.
With Bitcoin being responsible for the making of numerous millionaires, BTC dominance is something that we have all become used to. That being said, there are other cryptos that are starting to make up ground. With the likes of ETH, ADA, and LTC hot on its heels, will Bitcoin continue to dominate, or are we going to see another crypto take over as number one?
A solid future
The fact that Bitcoin was the first crypto means that it has had the time to establish itself. What has happened with BTC is that it has now entered the mainstream and this happening means that there is never any danger of the crypto simply disappearing. What we have seen is major companies such as Tesla and Microsoft investing in Bitcoin as well as the likes of PayPal starting to accept the currency.
Now, no one has a crystal ball and no one can say exactly what the future holds, but what we can see with BTC is that the days of boom and bust are gone. Established companies and private investors have placed their stakes and this shows stability and confidence. This makes it difficult for other cryptos to overtake and do away with the BTC dominance.
What could potentially derail BTC?
Although BTC may be the dominant crypto, that doesn’t mean that its position is guaranteed. Being the original crypto means that it is also the oldest. Being the oldest means that it is in danger of its technology becoming outdated. Indeed, some experts believe that in the not too distant future, the Bitcoin blockchain will be almost obsolete.
Of course, it is unlikely that Bitcoin will remain static and allow this to happen, but the time that it takes to make corrective steps allows other, newer, cryptos to gain ground. The likes of ADA in particular has developed a network that is far less reliant upon mass-energy and that can perform transactions at lightning speeds. This is what BTC now has to compete against.
New emerging blockchain technologies
With BTC facing the issue of ageing, other cryptos are all learning from each other’s limitations. Having learned from BTC, ETH evolved into something quite different. Then the likes of ADA and Polkadot saw the limitations of ETH and went on to develop technologies that would overcome these.
There was once a time when a new coin would be accompanied by a great deal of hype. Often, hype was all that would be delivered. Those behind crypto now aren’t looking at a quick buck. Taking meme coins out of the equation, developers are looking at long-term viable currencies and each new release sees numerous improvements. This leaves BTC with ground to make up.
Greener alternatives
Bitcoin wasn’t developed with green in mind. People have long been aware of the energy consumed by mining for Bitcoin, but until recently no one has really drawn any significant attention to this. That all changed thanks to a certain Mr Musk. Tesla had just started to accept BTC as payment for its cars. Musk then overturned this decision citing the lack of green credentials and how this didn’t sit well with what Tesla stood for.
As more of the world’s population is starting to take environmental issues seriously, there will be many that seek a greener alternative. It already exists in the form of ADA which is around 1 million times more energy-efficient than BTC.
Overcoming the first hurdle
Despite the potential issues being faced by BTC, the truth is that competitors will still face an uphill battle to challenge its dominance. Bitcoin has been through the process of being ridiculed, of being misunderstood, to being accepted, and now mainstream. Anyone seeking to challenge BTC as the most popular crypto still has that journey to go through.
While other cryptos will continue to develop and increase in value, the reality is that BTC dominance will continue for a considerable amount of time to come.