Bitcoin is having been in trend for several years, but the current year has not been good for the biggest cryptocurrency in the market. Several things have occurred in the past few months which has taken a toll on the price of bitcoins. If you want to earn easy money with bitcoin trading, you must visit Bitcoin Boom. The increasing popularity of altcoins has become a threat to the crown that bitcoin has been holding for the past few years. Some altcoins like Ethereum are rapidly growing and are pulling bitcoin down.
Altcoins are damaging the market capital of bitcoin!
With the increasing popularity of cryptocurrencies, several digital currencies have been introduced in the market, and each one of them is in direct competition with bitcoin as it is the most popular and valuable cryptocurrency. Although most of the altcoins are way smaller than bitcoin but together, they are damaging the market capital of bitcoin. A lot of investors are showing their interest in cryptocurrencies other than bitcoins, such as Ethereum, dogecoin, etc. Buyers are following the trends and focusing on new cryptocurrencies with an aim to make some quick profits.
Bitcoin is the eldest and most significant cryptocurrency, but now the focus of investors is getting off bitcoin as they are focusing more on its alternatives in the market. If we talk about the market share of bitcoin, it was around 70% at the starting of the year, but currently, it is only 25%, as it dropped over 45% because of the altcoins. Bitcoin’s market cap is still at the top with $800 billion as it is widely adopted as a payment method.
Ethereum bruising the popularity of bitcoin
Ethereum is the second-largest cryptocurrency and is considered to be one of the biggest competitions for bitcoin. The market capital of Ethereum has increased over four times in less than a year, which has definitely left an impact on the popularity and demand of bitcoin in the market. With the massive growth of Ethereum, investors are now focusing more on altcoins and looking for an opportunity to make some profits out of them. A lot of money has been invested into altcoins as you never know which one of them may become the next Ethereum.
Doge coin – Top altcoin
If we talk about altcoins, dogecoin cannot be left as currently; it is everywhere. It was launched in 2013 as a joke as its logo displays a dog names Shiba Inu which is a popular meme on social media. It was merely a joke, but a single tweet from the Tesla owner made it a star overnight. Dogecoin increased over 10000% this year and has become the fifth-biggest cryptocurrency with a market capital of $60 billion. It is also one of the primary reasons behind the downfall of bitcoin as the interest of investors is focused on altcoins like the dogecoin, and people are withdrawing their money from bitcoin with a fear that they may face a loss.
Last week, the owner of Tesla, Elon Musk, posted a tweet and said that he has been working with the developers of dogecoin. Seeing the interest of Musk in dogecoin, the investors went mad and started investing in it blindly. It surely bruised the market cap of bitcoin as most of the investors withdrew their money from bitcoin and invested it into dogecoin.
Adding to it, with the ongoing impact of altcoins, Elon Musk tweeted that his company will no longer accept bitcoin payments. It was a massive attack on the already damaged market cap of bitcoin, and seeing the Tesla Owner showing his lack of interest in bitcoin, the price of bitcoin tumbled down further and reached its lowest point in a year.
Buyers need to be careful
The trend of altcoins has surely shaken the market, and a lot of investors have lost a massive amount of money. Buyers need to be careful as it is not necessary that you shall panic and withdraw all your money from bitcoin. Bitcoin is the largest cryptocurrency, and it is widely accepted as a common payment method. On the other hand, most of the altcoins like dogecoin are mere trends that may disappear in few weeks.