Altcoins May Die When BTC Rallies
While there have been a number of calls for an altseason and the death of Bitcoin, BTC has begun to outperform its crypto peers yet again, posting gains when altcoins suffer. As of the time of writing this, Bitcoin dominance sits at a hefty 55.8%, up from lows of around ~35% at the peak of 2018’s bubble.
One venture capital group, Heisenberg Capital, led by anti-establishment proponents and (very) early cryptocurrency adopters Max Keiser and Stacy Herbert, says that Bitcoin’s hegemony may continue to grow.
In a recent tweet, the venture capitalists, who have purportedly allocated capital to Kraken, ShapeShift, Abra, Bitfinex, among other prominent industry upstarts, remarked that the market has begun to reject everything, save for BTC. This has seemingly been the case. As explained earlier, the so-called “crypto winter” of 2018 has allowed Bitcoin to claw back market share from altcoins, most of which were dramatically overvalued and overhyped during early-2018.
Heisenberg corroborates this, even hinting that it thinks altcoins still have few viable use cases or a lack of a solid value proposition when it wrote: “As BTC climbs toward our 2011 target of $100,000, we believe everything except BTC will die-off.”
History would agree with this analysis.
A majority of 2013’s top 20 crypto assets have all but faded out of existence, with newer projects like Ethereum, Monero, and EOS ousting Namecoin, Peercoin, and Feathercoin, which all used to be the crème de la crop back in their hay day. Not only have these little-known projects faded from public memory, but some have totally abandoned, with their…