Key Takeaways:
- The Founder of MicroStrategy expects Bitcoin to increase twentyfold in price.
- This forecast is based on the logic that altcoins will fall after the SEC crackdown.
- Saylors expects Bitcoin to dominate the crypto market in the coming future.
YEREVAN(CoinChapter.com)- The Securities and Exchange Commission(SEC) started a brutal legal campaign against altcoins. Since then, it appears more apparent that Bitcoin can be seen as a safer asset than other cryptocurrencies.
The SEC lawsuits do not include Bitcoin, which gives analysts and forecasters more confidence in its popularity in the future. Bitcoin is the most dominant and valuable crypto to date. The recent crackdown on altcoins might make Bitcoin’s foundation more solid and set in stone.
One little crypto-tech lingo explanation before we start. The proof-of-work (PoW) model in crypto validates and confirms transactions on a blockchain network as a consensus mechanism.
In this model, miners compete to solve complex mathematical puzzles to add new blocks to the blockchain. In turn, earning rewards in the form of cryptocurrency.
With that out of the way, let’s dive in and explore the opportunities available to Bitcoin and how it can profit from them.
Bitcoin Heads For Dominance, MicroStrategy Founder Claims
Micheal Saylor, the Founder of the analytical platform MicroStrategy has expressed the opinion that the latest SEC crusade made it clear that Bitcoin will likely prevail as the dominant crypto. From his view:
“MicroStrategy’s views since 2020 have been that the only institutional grade asset is bitcoin”
Regulatory clarity is going to drive #Bitcoin adoption by eliminating the confusion & anxiety that has been holding back institutional investors. Bitcoin dominance will continue to grow as the #Crypto industry rationalizes around $BTC and goes mainstream. pic.twitter.com/Foq4lpderj
— Michael Saylor
(@saylor) June 13, 2023
He also added that:
“It’s pretty clear that the regulators don’t see a legitimate path forward for cryptocurrencies … And so the entire industry is kind of destined to be rationalized down to a bitcoin-focused industry”
Additionally, Saylor anticipates that Bitcoin’s market cap dominance will rise from the current 48% to over 80%. In case authorities were to declare other coins as securities. Moreover, this regulatory definition will make altcoins less attractive compared to Bitcoin.
However, Saylor expects that regulatory authorities will not classify all altcoins as securities. In his estimation, more than 25,000 will escape this label.
Furthermore, these “spared” coins will likely use the Proof of Work consensus model. In Saylor’s conviction, the Proof of Work model is the best way in the future for crypto. He expects Bitcoin to increase twentyfold from the current $25,813 eventually.
The Motions And Dynamics
Generally, BTC dominance prevails during the crypto markets’ bearish cycles. Conversely, it starts to drop when bullish attitudes take over. The bullish attitudes are somewhat associated with altcoin popularity upturns.
This logic, in turn, suggests that if the altcoins start to dwindle in usage or popularity, it’s likely that Bitcoin will take over. In its early years, Bitcoin held the largest market share, but its dominance declined to a low of 34% in 2018 before gradually recovering to nearly 50% in 2023.
The crypto market experienced a decline in prices last year, leading to the bankruptcy of numerous crypto companies, including FTX exchange and Celsius Network. However, Bitcoin’s dominance has been on the rise since reaching a low of 38% in November, as reported by CoinMarketCap.
The Bottom Line
It’s logical to assume that once the regulatory crackdown ends and the dust settles, Bitcoin could get the upper hand if altcoins plunge. However, it’s important to note that crypto markets usually move in volatile cycles that change like seasons.
So if changes do happen, there’s no guarantee it’s everlasting or permanent.
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