Cryptocurrency Investors Moving Back Into BitcoinRyan Tucker
More and more cryptocurrency investors are moving their holdings back into Bitcoin. The Dominance Index, which measures the percentage of market capitalization of various cryptocurrencies, demonstrates that Bitcoin’s market share is climbing back up over 42%, a significant increase from the lows under 33% that were seen in January, and a rise from the 36% share seen in May. While Bitcoin enjoyed a market share over 80% as late as last March, the surge in the popularity of cryptocurrencies over the past year and a half has significantly eaten into that dominance.
The sheer number of cryptocurrencies out there is mind-boggling, with CoinMarketCap tracking the market capitalization of the top 100 cryptocurrencies and publishing trading volume data for nearly 1,600 cryptocurrencies. Even with Bitcoin’s overall market share down to just over 40%, it still has well over twice the market capitalization of second-place Ethereum, and nearly six times the market capitalization of third-place XRP.
Bitcoin was the trailblazer, the cryptocurrency that showed everyone what cryptocurrencies were capable of doing. Its adoption as a means of payment by numerous businesses helped put cryptocurrencies on the map. And despite the rising popularity of Litecoin, Ethereum, XRP, and others, if you have to have to pick the most-accepted cryptocurrency it would have to be Bitcoin. While you may find some online marketplaces that will accept Ethereum, Zcash, Tron, or even more obscure cryptocurrencies, just about every vendor that accepts cryptocurrencies will accept Bitcoin.
While there’s still speculation that something bigger and better than Bitcoin will eventually enter the market, that has yet to happen. In fact, with continued improvements to Bitcoin, any drawbacks it may have had are slowly being done away with. That’s good news for Bitcoin IRA investors, as the stronger Bitcoin remains, the more likely it is that it will outlast all its competition and remain the cryptocurrency against which all others are measured.