Ted Rogers, the President of Xapo has recently made a very bold claim about the rapidly declining cryptocurrency markets. He believes the ongoing ‘recession’ which has seen the overall market cap reduce by over $600 billion in 2018 alone, will see the end of 90% of all of the altcoins. In turn he feels this will reduce the Bitcoin enough for new investors to come in and make some serious profit.
“90% of the digital currencies in the cryptocurrency market are poised to get wiped out while predicting an impending recession to take place in the altcoin space. Rogers says that this lapse will give crypto enthusiasts a huge opportunity to buy Bitcoins at a discounted rate.” – Ted Rogers
This scenario has been mentioned by a number of big names in the cryptocurrency industry, including Ethereum’s founder, Viltalik Buterin. Although Buterin’s focus was more on ICO projects, he still stated that 90% of ICO’s would fail. The “90% will fail theory” has been around for sometime but no one has every specified when or how this will happen. Ted Rogers blames altcoins for the rapidly falling market cap of cryptocurrencies but also states this is why Bitcoin dominance is rising again.
“This lapse in the altcoins has resulted in the growing Bitcoin dominance in the entire crypto market. For the first time in 2018, Bitcoin dominance has crossed 50 percent mark. The altcoins sell-off has been triggered by the continuous price reduction in Ethereum, as most of the digital currencies launched through ICOs last year are based on the Ethereum blockchain network.”
Hypothetically speaking, if 90% of the altcoins were to ‘fail’ or go to zero, then we would certainly see a major change in both bitcoin dominance and the prices of the remaining 10%. The money which was left in the cryptocurrency markets would be a lot less diluted and would quickly move into the coins with higher trading activity or those with a better prospect.
Cryptocurrency trading is likely one of the major factors leading to this current situation. If you ask any crypto ‘day trader’, most of them will tell you that they do not care which coin they trade as they’re just looking for profit, which will either be converted to BTC or back into fiat currency.
If Rogers’ predictions are correct then, 90% of cryptocurrencies would fail which would lead to a drastic reduction in the Bitcoin price. He then believes this opportunity to invest in Bitcoin at a much lower rate will see investors pour their money back into the crypto market.
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