Bitcoin vs. altcoins. This has been one of the fiercest battles in the industry. While Bitcoin had a headstart on the altcoins, aggressive growth in the past few years saw them threaten to upset the status quo. However, according to a report by a global management consulting giant, Bitcoin will retake control in 2019. The report stated that investors will be seeking to reduce their risks in light of new financial and regulatory frameworks and will thus consolidate their Bitcoin holdings.
Indeed, this year has seen altcoins lose much more than Bitcoin has. XRP has lost 88 percent, Ether has shed 90 percent while the embattled Bitcoin Cash lost 95 percent. Bitcoin Diamond and Bytecoin have shed an astonishing 99 percent in just one year. Bitcoin, on the other hand, has shed 79 percent since hitting $19,600 a year ago.
The Battle For The Future
Whenever Bitcoin vs. altcoins arises, the crypto faithful becomes divided sharply. The Bitcoin maximalists will tell you that it was what Satoshi Nakamoto invented, and what he envisioned as the tool for liberation. Those whose allegiance lies with altcoins point to the enhanced features including scalability, privacy and speed.
According to a report by A.T. Kearney, Bitcoin will gain ground as altcoins go down in 2019. Researchers at the Chicago-based management consulting firm believe that the next year will see the industry mature and consolidate. And the ultimate winner will be Bitcoin.
In its prediction for the ten things that will shape the world in 2019, the firm stated:
Despite these obstacles, the cryptocurrency market will begin its second decade in a state of post-crash consolidation and maturation. 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
An Optimistic Outlook
The report expressed optimism that 2019 will be a good year for crypto. Regulation of the industry will be key in its progress, and it has already kicked off. The U.K Parliament’s Treasury Committee has been on a mission to stifle criminal activity and reduce runaway volatility. This is in its bid to make the U.K a crypto hub. In the U.S, the Securities and Exchanges Commission is expected to warm up to the prospect of a Bitcoin ETF. This will further give Bitcoin an edge over the altcoins.
The report also pointed out the irony that Bitcoin’s survival depends on its uptake by the banks, the very institutions it sought to overhaul.
Ironically, for cryptocurrencies to see a third decade, the only viable path forward involves this acceptance by the international financial system that Bitcoin once sought to defeat.
Bitcoin or altcoins may be a fierce battle, but an even bigger one threatens the whole industry: that of the legacy financial system vs. cryptos. For Bitcoin and the altcoins to stand a chance of survival in their second decade of existence, they must infiltrate the financial industry and overhaul the established systems. When this happens, the sky will be the limit.