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Bitcoin’s Market Dominance Is Decreasing, and That’s OK

I wanted to take the time to write a quick response to many of the sensationalized pieces that have been coming out about Bitcoin and cryptocurrency lately. Cryptocurrencies have been on everyone’s mind lately, and even though there are clear signs of more widespread adoption, the headlines still seem similar to before. Bubble concerns and fears of criminal use are commonplace, but a newer one I’ve been seeing is “Bitcoin is losing its dominance in crypto’s market cap.” To that I say “good,” and here’s why.

Bitcoin dominance index decline is a good thing

Contrary to what these headlines would have you believe, if any asset were as dominant in the market capitalization of traditional markets, there would be public outcry and trustbusters at the door. That degree of dominance in other asset classes would be intolerable, and for good reason. Such monopolies mean these assets, companies, and products can get lazy because there is no rush to improve. While I deeply love Bitcoin, it is far from perfect. Anyone saying otherwise is being willfully ignorant.

However, Bitcoin and cryptos in general are a completely new asset class that play by their own rules. They don’t behave like ordinary assets, and their markets don’t close or stop trading because of some bell. As such, even when new coins enter the market every day, rather than stealing money from Bitcoin or other alts, they simply seem to add to the industry’s overall market cap. We saw this with the Bitcoin Cash and Gold forks. They didn’t take value away from Bitcoin, but rather made their own. Mind you, this does not mean that there is not fierce competition among altcoins.

In fact, when Ethereum and Ripple were both clawing away at each other to fight for the #2 spot in all of crypto, I kind of wished that something could begin to approach Bitcoin that way. Markets thrive when its users have ample and meaningful choice. Choices have to be more than a random ticker from a basket, so different assets and companies all scramble to offer some sort of innovation. It is this kind of competition that makes markets move.

This is why, even if only slowly, seeing Bitcoin starting to lose that dominance is not bad. To the contrary, it is exciting. It means that there is competition among various cryptocurrencies all vying for users based on new features and other innovations. While I still believe Bitcoin will be king for at least my entire life, I would not be surprised if we see its market dominance continue to slip. Again, I think this is a good thing.

So the next time you see a headline from a media outlet claiming that Bitcoin is losing its foothold in the cryptocurrency marketplace, remember that it is because there are now opportunities elsewhere in cryptocurrency, and not because people are losing faith in Bitcoin.

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Russia, Norway and Japan Have Embraced Bitcoin in 2017

Bitcoin, which was first launched in January 2009 has surpassed all expectations in 2017. Its value started the year on shaky ground, going up and down on a daily basis. But for a few months, the price has been making headline news as it rose well above what anyone predicted. No one could have foreseen the price of Bitcoin would reach $20,000 in less than 12 months, and all estimates made earlier in the year were for half this amount. In 2009, one could buy 5,000 Bitcoin for $27 and will have made a very nice profit if they had kept them. ‘Bitcoin’ – Zach Copley via Flickr (CC BY 2.0) 2017 Landmarks Bitcoin is becoming more and more accepted as a currency by governments and organisations, with nearly 6 million users worldwide. Along with its huge growth in users and value, there have been several landmarks for this digital money in 2017, including: Japan making Bitcoin a legal currency for savings and transactions. This has increased the country’s use of it a great deal, and now some Japanese employers partly pay their staff in Bitcoin. Russia announced it would legitimize the use of cryptocurrencies, including Bitcoin. Initially, they were concerned that Bitcoin was a danger to its economy and were considering laws that would have made it illegal to use. Now they are embracing it. Norway’s largest online bank, Skandiabanken, integrated Bitcoin accounts. It began publicly trading on the CBOE Futures Exchange. Bitcoin futures rose by 26 percent very quickly and the market had to be halted twice to give it chance to calm. The Bitcoin symbol was encoded in Unicode version 10. There have been other exciting ventures associated with Bitcoin, including the launch of the first Bitcoin Lotto. It allows prizes to be paid out in Bitcoin, which depending on the exchange rate can increase the winning’s value tremendously. Those with Bitcoin wallet will have a much better time as deposits and withdrawals in cryptocurrency is instant on the platform. The Lottoland jackpot stands at 1055 BTC at the moment, which is a small fortune. Photo: Lottoland The Future of Bitcoin What does the future hold for Bitcoin? That is difficult to predict. Certainly, it looks as though some of the countries such as India, Pakistan, Bangladesh, and Indonesia where Bitcoin trading is not allowed will remove those barriers over the next few years, and that can only help its growth. There are other cryptocurrencies that would love to take the top slot (such as Litecoin and Ethereum) and are working hard towards it. Could it be that it is the maximum limit to Bitcoin supply that is driving people to hold on to the digital currency and explore other cryptocurrencies, jumping into the altcoin bandwagon and getting more retailers to accept cryptocurrency payments. It is all an unknown that only time will tell, but just like with currencies of all countries, dealings will happen in whichever is the most profitable, and for the time being at least, that is Bitcoin. The post Russia, Norway and Japan Have Embraced Bitcoin in 2017 appeared first on NewsBTC.

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