Diversification With Altcoins Is an Illusion Because They All Depend on Bitcoin’s SuccessOpen your eyes, and focus on the real revolution.
Bitcoin is the undisputed king of the cryptocurrency world. A real consensus exists on this fact that Bitcoin’s dominance over the entire cryptocurrency industry confirms. On the other hand, Altcoins’ fans believe that Bitcoin will not remain the undisputed leader in the future.
Among absolute Ethereum fans, many believe that a reversal of dominance between Bitcoin and Ethereum will occur in the future. This hypothetical event even has a name, since Ethereum fans call it “Flippening”.The great Flippening illusion
In order for this Flippening to take place, Ethereum’s market cap would have to overtake Bitcoin’s market cap. To give you a better idea of what this means, you have to keep in mind that Ethereum currently has a market cap of $26 billion, while Bitcoin is close to $170 billion.
This shows you how far Ethereum has to go before an event such as the Flippening can take place.
Nevertheless, many people are firmly convinced that this event will take place one day. Many go even further, thinking that Ethereum itself will be dethroned by another cryptocurrency. A kind of Flippening of the Flippening.
Thus, some imagine that EOS or Cardano will be able to surpass Ethereum in the future.
The big question I invite these people to ask themselves is the following:How could a Flippening take place if Ethereum itself is not able to keep its leading position in the field of smart contracts and decentralized applications?
I let you try to answer this question. For my part, the answer has already been found, which is why I only buy Bitcoin.Some people want to hedge against risk by diversifying with Altcoins
That said, many people feel it is important to diversify their portfolio of cryptocurrencies. To convince themselves of the importance of doing so, these...