Anyone that’s done a cursory scan of crypto-related headlines in 2021 is surely aware of the stellar growth Bitcoin enjoyed. Though volatility is still present in the bitcoin market, there’s no denying the currency has had an impressive run: from one bitcoin being valued at just about $30K at the beginning of 2021 to reaching an all-time high of approximately $69K in early November. As of writing, we see 41–42K in the beginning of 2022.
Of course, other cryptocurrencies like Ether enjoyed similar success in 2021. Ether reached a record high of $4.6K, while ‘memecoins’ like Shiba Inu and Dogecoin also saw exponential growth rates.
It’s clear that while Bitcoin remains the world’s #1 cryptocurrency, there is still certainly room for other coins in the market. The question: can Bitcoin retain its #1 status in the coming year?
Competition
According to a report from crypto research company Messari, the probability of Ether ‘flippening’ (or overtaking in market capitalization) Bitcoin is at about 20%. Even then, the appeal of Ethereum lies in that behind it is the world’s most unique user-owned computing platform. The Ethereum blockchain is also gaining more prominence, with a rising number of institutions investing in it.
The report posits that although Bitcoin is unlikely to lose its #1 status in 2022 just yet, it’s likely that other cryptocurrencies will continue to gain ground on it. 2022 may even be the year that ‘crypto’ as a whole will finally outperform the cryptocurrency so many people make its synonym.
People skeptical over Bitcoin’s longevity must consider that the currency carries a significant first-mover and technical advantage. From the Messari report: “Bitcoin’s scarce resource is its simple monetary meme. Its pure play ‘money’ competitors are less intimidating: Dogecoin, Shiba Inu, Bitcoin Cash, Craig Cash, and the forks of their forks are not much to write home about.”
Thus, although Bitcoin dominance slid from 71% to 42% in 2021, ETH’s smart contract platform dominance also slid from 80% to 60% — much more is said about the markets here than the assets themselves.
For the most part, Bitcoin will continue to be king in my opinion.
Best of both worlds
It’s worth noting though that mainstream adoption is inching closer for Bitcoin and coins like Ether, Litecoin, Tether, and more.
Earlier this year, El Salvador became the first country to officially adopt Bitcoin as legal tender. Famed auction house Christie’s has announced that it will be accepting Ether as payment for auctioned non-fungible tokens. Litecoin is now accepted by millions of hotels and airlines.
In light of increasing mainstream adoption, businesses everywhere are swiftly realizing the importance of being able to accept not just one, but multiple cryptocurrencies. That is why blockchain solutions providers such as Pundi X develop point-of-sale smart device backed by blockchain and enable brick-and-mortar retailers to accept payments in multiple cryptocurrencies.
The XPOS has been deployed to pubs and cafes anywhere from Japan to the United States. In the years since the device’s inception, XPOS has already been deployed to merchants in over 30+ countries. We also receive requests from our customers to implement onchain transactions for Bitcoin even though the block confirmation is the slowest among other cryptocurrency.
To sum up, Bitcoin will remain king but there is massive potential in both Bitcoin and the dozens of emerging altcoins. To get the best of both worlds, traders and investors would be wise to do their research on both.
