Hey everyone, I'm here to tell you that while the end of 2017 may be feeling like Bitcoin dominance is setting in, 2018 is the year that the other portion of the cryptocurrency market takes off. There is a trend in technology that allows new technologies to become adopted, but as the years have progressed, it hasn't been the first technology that gets there and starts strong in the marketplace that stays on top. Bitcoin has some serious limitations that are not yet known to the majority of the public and as these emerge and the benefits of other cryptocurrencies emerge, the market will move away from bitcoin saturation and you will see a more fleshed out marketplace where several altcoins start to eat away at the Bitcoin dominance. At the rate that news is spread and absorbed, I think we see this trend start as soon as 2018. So what are the limitations that I mentioned previously, well I've got a list for you, just check it out below:
- Proof of work - Bitcoin does not have a solution or work around to solve the mining problem that it currently has. Some cryptocurrencies operate through a proof of stake platform, which is considerably more efficient when the mining difficulty is as high as it is now.
- Power - The amount of Bitcoin mining going on right now requires more than some European countries. This is not a climate friendly solution and there will be those out there that start rallying against Bitcoin to protest this. If you look on twitter there is already some of this going on.
- Bitcoin right now is providing great returns on investments, but inherently, there is not a way to earn interest while your money sits in Bitcoin, so when it hits its peak investment zones, why would investors keep their money in bitcoin? There are cryptocurrencies out there that do offer a dividend/interest/etc that will become more mainstream as the word gets out. Check out SmartCash's SmartReward system for an example.
- It's just not the best technology out there or even the most developed upon blockchain (that would go to Ethereum). There are plenty of other altcoins that are faster, work on different proofs, provide more flexibility, anonymity or clarity, and application specific benefits.
In the long haul, Bitcoin may stick around, but its more likely to be a universal reserve coin, than a universally utilized coin. My firm belief is there will be altcoins that currently exist and are evolving faster than bitcoin that will overtake it and do so quickly. Look for 2018to be the year of the altcoin. I won't pump any of my investments, but the altcoins below are the ones I'm rolling with into 2018 and I'd be interested to hear your thoughts on bitcoin or even what altcoins you think are the future.
My Blockfolio:
BitBay (BAY)
Bytom (BTM)
Ethereum (ETH)
Iota
Neo
Request Network (REQ)
SmartCash (SMART)
Universa (UTN)
XtraBytes (XBY)