Still too early to know if Bitcoin will remain top dog, Wall Street vet says
Will other crypto assets ever overtake Bitcoin in market cap? Daniel Strachman weighs in.
Bitcoin has thus far remained the largest crypto asset in terms of market capitalization since its launch in 2009. Given the thousands of other cryptocurrencies that have come into existence over the years, could any of them ever become larger than Bitcoin (BTC) in terms of market cap?
“We are in the top half of the second inning of crypto and right now it looks like BTC will remain at the top however, like the Red Sox fell apart this year, we just don’t know,” managing partner of A&C Advisors LLC, Daniel Strachman, told Cointelegraph. Strachman’s experience includes decades of financial work and writing multiple books. “It comes down to market reaction and investor interest,” he added. “There is a lot of talk about Eth surpassing BTC and that is a reality but we need to play a few more innings to see what happens.”
The crypto industry has seen multiple market cycles, growing larger with each. CoinMarketCap, which lists crypto assets according to their market cap size, is a common source of data in the digital asset industry. Crypto assets have achieved massive dollar valuations. Almost all of the crypto assets in the top 100 on CoinMarketCap carry valuations over $1 billion — a sign of the crypto industry’s growth and significance.
Technology has developed significantly since Bitcoin’s inception over a decade ago. Discussions and comments regarding a “flippening” — industry lingo for a different cryptocurrency surpassing BTC in market cap — have surfaced from time to time. What might cause another crypto asset to surpass Bitcoin in market cap?
“Utility in the market and investor adoption and interest is what will drive one crypto asset or maybe two to surpass BTC,” Strachman said.
Bitcoin has gained prominence in the mainstream eye. The asset has a fixed and comparatively scarce supply, as well as a loyal following in the crypto industry, especially among a crowd called “Bitcoin maximalists,” who essentially see BTC as the only crypto that will succeed long term.
Related: MicroStrategy splashes $177M on Bitcoin, now holds almost 109,000 BTC
“The crypto market is an asset class that is here to stay,” Strachman said when asked about the likelihood (or lack thereof) of a BTC flippening and the significance of such an event. He added:
“It is not going away. If a crypto asset surpasses BTC it will be because of market forces both investor interest and market utility. If you look at the top five companies by market cap in 1980, they were Exxon, GM, Mobil Ford and Texaco, today they are Apple, Microsoft, Google, Saudi Aramco and Amazon – things change and that is ok because that is how free global markets work.”
The likelihood of a flippening remains difficult to quantify, although talk over the past several years has questioned Ethereum (ETH) as a potential contender.
