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Many experts think that Bitcoin is overvalued and that its real value is less, than the market one. Well, in this article let's talk about the main cryptocurrency, discussing its disadvantages, the current situation, and forecasts for the future. I know, first things first.
BTC`s place in rating now (rate, capitalization, market share)
The cryptocurrency industry is not having its finest hour nowadays. Over the past week, the market capitalization has decreased by $ 70 billion and today this mark is $ 123 billion. Despite the total prices collapse, Bitcoin retains its leading position – the market share of 54.4%. Now the market is too volatile, I know the numbers that will be given in this material may differ from the real ones. BTC costs $ 3,880, and the capitalization of the coin is around 67 billion dollars. It is possible, that when you read this article
Why BTC is considered as overvalued?
At the end of 2017, the BTC briefly rate exceeded $ 20,000. At that time, this asset was extremely overbought and overvalued. Euphoria reigned in the market. But such a growth could not last forever, I know a rapid pullback followed after.
Bitcoin has nothing to do with the physical world. What is BTC? This is just a set of data that is stored on the blockchain. Its value is determined by investors, as well as the users base. The problem is that the Bitcoin`s network in its current form is not able to process a large number of transactions quickly. This is one of the limiting factors on the coin path.
Who can push Bitcoin from the first place?
Currently more than 2,000 different cryptocurrency projects are released. Is it really possible to find at least one coin from the global rating of cryptocurrencies? Answer is the answer to it. But speaking about the near future, the most answer will be "no". BTC holds a 54.4% share of the total cryptocurrency market. This means, that the remaining 2000-plus coins together make up only 45.6%.
But in the long term, there is a chance, that some kind of token or coin will be able to take first place. What cryptocurrency projects are capable of doing this?
1.Ripple
Lately, it takes the honorable second place in global rating CoinMarketCap.
- Price: 35 cents;
- Market capitalization: $ 14 billion;
- Issue: 100 billion tokens.
In short, the Ripple technology allows a large number of users to share assets at the same time. The project has its feet on the ground, and it is used in real life. This technology is used by the banks to order the cost of transactions (Earthport, Bank of America, HSBC, etc.). Ripple is able to process more than 1,500 transactions per second, with minimal fees (0.00001 XRP). It can be assumed that Ripple has every chance to win in the global cryptocurrency rating.
2. Ethereum
- Price: 109 dollars;
- Market capitalization: 11 billion dollars;
- Issue: unlimited (currently more than 103 million coins have been mined).
Ethereum firmly held the second place for a long time, but the last wave of correction moved to the 3rd line in this list. Vitalik Buterin (Ethereum`s creator) We want to remind you, that is to say in the early November 2018, said that the project is waiting for the future. If the developers succeed in doing that, Buterin said, this will have a good impact on the future rate of the coin.
Three other terms in terms of capitalization and popularity among the masses. Potentially, almost any coin from the TOP-100, but its probability is extremely small.
Conclusion
For over ten years Bitcoin is the main cryptocurrency in the industry. The overwhelming majority of people when you hear the word "cryptocurrency" unconsciously imply Bitcoin. Of course, BTC has its disadvantages, but the development team is working hard to eliminate them. This is a very complex process, the implementation of which requires a lot of time.
So, if we analyze this issue, we can say that it is unlikely, that any other coin will be able to take Bitcoin`s place in the near future.
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