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Halving is Coming: Why Bitcoin is Likely to Lose its Crypto Market Dominance

Halving is Coming: Why Bitcoin is Likely to Lose its Crypto Market Dominance1 min read
  • March 29, 2024
  • by UH News

The next Bitcoin halving is scheduled for April 2024, a cryptocurrency control mechanism that uses scarcity as a paradigm against inflation and has traditionally generated a rebound in the value of this asset. This cuts to half the rewards for miners, and the last one occurred in May 2020, when the value of the cryptocurrency was $9,734. A year later, BTC reached a value of $67,549.

This year, when Bitcoin hit a new all-time high of $73k, optimists like Cathie Wood, CEO of ARK Invest, project a price of $1.48 billion by 2030. However, this thinking is not shared by everyone in the industry. Alex Konanykhin, CEO of Unicoin, the publicly reported and audited asset-backed cryptocurrency, stated in an interview for Nasdaq that Bitcoin's market share could shrink to less than 10% by the end of this decade, while the cryptocurrency market will likely exceed $9T.«There are only 30 days until the next halving, and currently Bitcoin's dominance is 52.04%. If we look at previous halvings, which sparked greater interest in the other cryptocurrencies, this dominance figure drops below 50%, causing many to rethink their view that Bitcoin is the leading crypto asset», he explained.

Bitcoin is Becoming Outdated

For Konanykhin, the scarcity principle that would keep Bitcoin as a long-term market leader does not apply because there can be an unlimited number of cryptocurrencies similar to Bitcoin, and even improved versions.

An article from Business Insider delves into this theory, noting how the conversation about Bitcoin's use cases has dwindled, minimal transactions are recorded on its blockchain and most of its investors simply plan to hold forever.

In the text, Konanykhin highlights that with only 15 years of life, Bitcoin is becoming obsolete. In contrast, other cryptocurrency options are emerging that can serve as a store of value, medium of exchange, and investment, which are shaping up as the new paradigm for this industry.

New-generation cryptocurrencies are particularly attractive to institutional investors because, in contrast to early digital currencies, they are auditable, publicly reported, and adhere to regulations. It is a shift from that considered Wild West which was the beginning of the crypto market to being situated in a regulatory framework that favors transparent and backed cryptocurrencies.