Recently we held a poll in our groups to determine which coin members expected to lead the pack in 2019. We listed several including BTC, Stellar, XRP and ADA. In the end BTC came out on top by 42%. After seeing the results of the survey, I felt I should write up something for our followers and break it to them straight, like we do best. No fake new or over exaggerations. Let’s have a look at the future of crypto to determine if BTC really is going to remain king.
What is important to remember about BTC is it is considered more of a commodity than a currency at the moment. This would be expected of a “new” currency as it needs to gain traction before becoming a worldwide store of value. A commodity is not a cash generating asset compared to traditional stocks that pay dividends. An example of a commodity is Gold, Silver or Oil.
Anyway, back to my point. Intrinsic (natural) value of commodities usually means very little. For example, Silver is much harder than gold but is still worth a lot less. Gold is worth more because it is simply rarer and what the people chose. Now, if we were to think of BTC as a commodity like Gold we would begin to realise that many of its intrinsic values like its poor TX speed may mean very little. What is important is the hype it generates and BTC is the clear leader in that field. This is a strong reason why out of the 1600 total virtual currencies almost all of them will be worthless. Image there was 1600 different types of silver, gold etc. They wouldn’t be worth very much would they?
To conclude, as long as crypto currencies assume the name of a commodity I believe BTC will continue to hold the reigns as number 1. During the tech bubble of 2000 almost all IPO’s (initial public offerings) became worthless and only a handful survived; Ebay, Amazon. Perhaps this is going to be the story of cryptocurrency too.