Bitcoin had a torrid last decade as they had to conquered hacks, booms, heists and busts to remain as the king of cryptocurrency. But now bitcoin has a new challenge to reign its dominance as more than 2000 smaller digital coins have entered in the market.
These small coins are collectively known as “altcoins”, and they are gaining ground on their elder sister. They are able to do this by attracting small users and a community of developers who want to achieve their goals. This can be seen in the market share, where bitcoin accounts for almost 60% of the $240 billion crypto market, which is down from their 90% share in the market just two years ago. Amidst other problems, bitcoin has ignored this, but if they want to remain the king, then they have a tough task ahead.
Another reason for investors preferring altcoins is the volatility of bitcoin price. Although bitcoin value has reached a high in the past ten months, it is still short of its peak value. This has seen as a major hindrance in bitcoin rise in value. Bitcoin struggle as a means of payment is no hidden truth, and many people even doubt to go shopping with digital currency. This failure in commerce has hamstrung bitcoin to rise in cost and number.
Ethereum and XRP are two of the biggest altcoins in the market, and they together account for 20% of the coin market. Their respective circulations are valued at $22 billion and $17 billion. The digital coin is termed as “Money of the internet”, that is slowly recognized and accepted online. This is seen as the prerequisite by experts for bitcoin to break through into daily use.
This rise in demand has sparked a need for new security innovation that allows faster transactions.