According to a new investigation by the crypto company Pantera Capital, Bitcoin is to be surpassed by altcoins or has already been used by some in the annual performance in 2020.
In a June blockchain letter released on Wednesday, the hedge fund said that although an Altcoin bull run of the magnitude of 2017 is unlikely, we are in the middle of a bull market cycle - and we will continue to be in until next year remain one.
Bitcoin will already be surpassed by Ethereum and other cryptocurrencies in 2020 and this trend will continue, the investment company said. Currently, Bitcoin's value has risen 34 percent this year - but Ethereum has risen by 88 percent, while 0x and Augur have risen by 98 and 97 percent have increased. Ripple's XRP, still the fourth largest cryptocurrency by market cap, has dropped 2% this year.
"DURING THE CRYPTOCURRENCY BULL MARKET, WE EXPECT ASSETS OUTSIDE OF BITCOIN (ALT-COINS OR ALTS) TO OUTPERFORM," THE REPORT SAID. "OVERALL, THESE ARE HIGHER BETA ASSETS AND PEOPLE TEND TO BUY THEM AFTER BUYING BITCOIN, WHICH IS USUALLY THE FIRST PURCHASE OF CRYPTO ASSETS."
Bitcoin's share of the overall cryptocurrency market - "bitcoin dominance" - is currently just under 65 percent, but dominance is likely to decline, Pantera said. The reason for this is that other cryptocurrencies will gradually gain traction.
The growing interest in Bitcoin and other cryptocurrencies is a reaction from investors who are frightened by the excessive money pressure from central banks, the report said.
"BITCOIN WAS CREATED IN RESPONSE TO EARLIER MONEY PRINTING," PANTERA SAID. “THE PRICE OF BITCOIN HAS GROWN EXPONENTIALLY DURING THIS 10-YEAR PERIOD OF UNPRECEDENTED MONEY PRINTING. WHAT IS GOING ON IN THE WORLD TODAY IS AN ORDER OF MAGNITUDE LARGER ”.
“THE TSUNAMI OF MONEY HAS GENERALLY RAISED THE PRICE OF CRYPTOCURRENCIES. WE USED BITCOIN AS A PROXY FOR THE MARKET BECAUSE IT IS THE BEST KNOWN. ”
Pantera added that when the bull market matures next year, altcoins are expected to gain an even more significant market share compared to bitcoin .
"IT'S REALLY MORE THAN JUST BITCOIN," PANTERA CONCLUDED.