Bitcoin might be going through hell at the moment while other cryptocurrencies seem to be going well.
Analysts have taken different stances on the most recent bitcoin crash. One of the latest experts to add his voice is Blockchain Capital’s Spencer Borgart. He says that it has been a blessing in disguise for other cryptocurrencies.
According to him, even though bitcoin is not going anywhere, it is currently facing a lot of competition from other digital currencies the likes of Ripple and Monero.
He draws the public’s attention to the 2014 crash that saw the currency plummet from an all-time high of $1000 to $300. That was when the Mt. Gox and Silk road bust took place. He adds that at that time, most people even hardcore bitcoin believers thought that would be the end of the currency.
But in contrast, at the moment, there are lots of people who believe in the currency and consider the crash as a buying opportunity. In saying this, he echoes the sentiments of Tom Lee, who has advised aggressive buying now as this is the lowest the coin will go this year.
Unlikely Contenders
Bogart says that it is not the top bitcoin competitors like Ripple that pose the greatest risk to this king of crypto. Rather, it is the private models like Monero and Zcash that should be watched.
He explains that this is the case because with the fungibility that the blockchain offers, there should be privacy as well. This is where the aforementioned networks excel. He also adds that even the current currency models recognize this fact. This is why bills spent are not traceable.
Bogart feels that Monero and Zcash offer that precise advantage over bitcoin since all the transactions on their networks are treated equally. But with the latter, every coin acquired comes with a history that could be potentially risky to its holder.
Looking at the performance patterns on the three different currency networks, a trend emerges. With every rise on the value of BTC, there was a proportional increment in Zcash, Ripple, Ethereum and Monero as well.
Could Cryptocurrency Regulation be the Answer?
The most recent rises and falls in the various crypto spheres have been attributed to major sell-offs that were sparked by rumors of impending trade bans in China and South Korea. As is always the case in the industry, the FUD resulting from such rumors leads to panic and a majority wants to sell to the lowest bidder and get out while they can.
According to Cryptocompare founder Charles Hayter, the more the regulatory uncertainty surrounding the space, the more the likelihood of such extreme market reactions.
Other analysts believe that the upcoming G20 summit scheduled for March in Argentina will clarify matters surrounding the industry. This summit is meant to discuss the rise of bitcoin and the crypto industry as a whole.
Shuhei Fujise, an analyst at Alt Design, says that cryptocurrencies will most likely be capped ahead of this meeting.