Despite the massive losses from the corona crisis, Bitcoin has had a good year so far in 2020. Year-to-date performance up to yesterday's Sunday was over 25%, which means that BTC even outperformed the S&P 500 in the first half of the year. However, these price gains seem almost meager compared to the plus that some altcoins have had this year. Examples include Ethereum with + 72% and Tezos with + 65%.
But this glow of dwindling Bitcoin dominance can be deceptive. While some see a new Altcoin rally like 2017, others are not so sure about this. A well-known top trader from the crypto sector is more of the opinion that there will be an extinction of altcoins before the next long-awaited Bitcoin Rally. What is the point of his thesis?
Altcoin extinction before the next Bitcoin rally?
The top trader from the crypto sector is “Joe007”, who has made a name for himself by positioning himself at the top of the Bitfinex leaderboard. In a new Twitter post on July 3rd, Joe007 makes a bold thesis when he writes that in his opinion an Altcoin "mass extinction" will come before a possible next Bitcoin rally. Specifically, he wrote:
I believe the mass extinction of shitcoins will likely precede the next Bitcoin rally. Make what you want out of it.
Joe007's statement can be seen as very controversial, as there is always hope for an altcoin season like 2017 among some crypto fans. But the trader basically seems to have a critical attitude to everything that does not mean "Bitcoin". So he also shot at the DeFi area, which is based on the second largest and therefore the most promising cryptocurrency after BTC:
DeFi is nothing more than another marketing trick of a shadow gang of snake oil sellers behind Ethereum. It is obvious that they are trying to create another ICO-like mania. With the same 0 real benefits in the real world.
Other experts only see BTC
The top trader Joe007 is not the only one who has radical views of altcoins. Adam Back, the CEO of Blockstream, mentioned by Satoshi Nakamoto in the BTC White Paper, wrote on June 30 on Twitter:
There is only one cryptocurrency: Bitcoin
The programmer informed Bloomberg in early June that Bitcoin was on track to hit $ 300,000 within the next five years. This would mean that BTC would rise more than 3,000% from the current level.
BTC supporter Max Keizer, who is also known in the crypto sector, is also a so-called "Bitcoin maximalist" in addition to Back. In a recent interview, Keizer justified his preference for digital gold as follows:
There is no coin out there that can do something that Bitcoin is not already doing or can do shortly.
As we can see from the examples of Joe007, Adam Back and Max Keizer, many crypto experts agree that Bitcoin is the only true cryptocurrency and that altcoins are doomed to fail in the long run. But will they be right?
Basically, one can say that the 11-year dominance of Bitcoin is not a coincidence despite almost 5,600 other cryptocurrencies, according to Coinmarketcap. The cryptocurrency invented by Satoshi Nakamoto saw the greatest innovation in the crypto space, so it's no wonder that BTC has the most market cap.
Only the future can show whether all other cryptocurrencies are automatically doomed to failure. However, it is definitely clear that the world does not need 5,600 cryptocurrencies and 99% of them are worthless. In this scenario, however, there would still be room for some other "special cryptocurrencies" besides Bitcoin.