Bitcoin will cement its dominance over the cryptocurrency market next year in a fresh blow to altcoins, according to a leading analyst.
In the latest episode of his Trading Bitcoin YouTube series on December 22, Tone Vays, a bitcoin maximalist, warned that altcoin traders faced even worse conditions as 2020 begins, Cointelegraph reported.
“One of my predictions for 2020 is going to be Bitcoin dominance in 2020 reaching 85%,” he said.
Vays explained that bitcoin further strengthening its market position would echo gains it already secured this year – dominance is currently 69% versus 51% in January. As a percentage against its position in January 2018, bitcoin dominance is up 87%.
For Days, in the long term, the figure could expand to see bitcoin all but usurp altcoins altogether:
“I think Bitcoin dominance has one more push. The way we went from about 50% to 70% in 2019 – I think we have another 10-15% in bitcoin to gain on the sh*tcoins as it continues towards 90% and 95% and then 98%.”
The fundamental factor driving bitcoin’s success would be the hashrate strength. Since bitcoin/USD hit its all-time high in December 2017, the hashrate has grown by 800%, something Vays describes as “incredible.”
Hashrate refers to the overall computing power miners choose to devote to operating the bitcoin blockchain. Despite lower prices, interest and competition among miners continue to expand, also resulting in a more secure bitcoin network.
“Show me another sh*tcoin that has this kind of hashrate growth,” he argued.
Famously unconvinced about the potential role for alternative cryptocurrencies, Vays went on to predict that bitcoin’s Liquid sidechain product would ultimately “destroy” the utility of competitors.
Specifically, these are Ethereum, EOS and Cardano, all of which have accompanying altcoins for their platforms in the top 20 cryptocurrencies by market cap.
Vays has not always been so clear cut on bitcoin’s outlook. Responding to a mainstream media interview covering investor Tim Draper’s $250,000 Bitcoin price prediction, he claimed such bullish forecasts had made him “more bearish.”
By contrast, he told crypto media network BLOCKTV on Sunday, a $50,000 bitcoin/USD price by 2023 was still reasonable.
Draper recently adjusted his forecast for bitcoin, saying that his timeline for it hitting $250,000 is just six to 12 months after the halving in May 2020. He had previously stated that the leading crypto would reach that stratospheric price level by 2023, IBT reported.
In a tweet, BlockTV pointed out that Vays called Draper’s astronomical price prediction “grossly irresponsible.”
— BLOCKTV (@BLOCKTVnews) December 22, 2019