Cryptocurrencies led by Bitcoin failed woefully in 2018 due to reasons ranging from unfavorable government regulations down to the competitions against the altcoins. In a recent published A.T Kearney’s report, it was stated that Bitcoin would reclaim its glory and dominate the market by accounting 2/3 of the total cryptocurrency market capitalization.
The reason for this comeback was attributed to the possibility of favorable government regulations which will give the cryptocurrency a room to operate to the top. Softer regulations will aid in the launching of Bitcoin Exchange Traded Fund (ETF) which will in return pave the way for more investors to come on board. This prediction does not come as a surprise. The strength of cryptocurrencies lies in their ability to rise by 1000% when speculations favor its movement.
Usually, Bitcoin moves with the Altcoins, and a positive price prediction for the digital asset brings smiles to the face of the altcoin investors. In this report, it was pointed out that the dominance of Bitcoin will also be due to the ever-growing complexities among the altcoins.
This is indicated in the recent hash war in the Bitcoin cash ecosystem. The report establishes that a lack of consensus among Altcoin developers in regards to the way forward will broaden the chasm between Bitcoin and the Altcoins. Bitcoin has already established itself, and the need to run away from coins that have no proper plans makes Bitcoin the inevitable destination.
The report in no way played down the possibility of the Altcoins to rise to the moon. In 2019, the Altcoins that deals with real product and real revenue will thrive. “Those that are whimsical and have no real value will vaporize, while the real ones will not only survive but thrive over time,” said Steve Russo, Executive VP Eclypses.
This analysis is critical as it projects a general overview of the cryptocurrency market in the coming years. However, it is essential to understand that the crypto market is very sophisticated, and its affected by the interplay of many factors which make the analysis that focuses on one or two factors irrelevant.
Though the market looks promising in the coming year, there were a lot of conditional statements which makes it dangerous to side with the report 100%. The comeback will only be staged if certain conditions are met including softened regulations according to the report. On this note, investors should invest an amount they can afford to lose.
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