A Note on BTC Market Dominance

I am writing this to address the question that many have posed to me regarding when Ethereum or some other cryptocurrency will overtake Bitcoin’s market cap. Nobody knows the answer to this question, but here are a few things to consider when contemplating the possibility.

The fact is that all this will depend upon the kind of investors / individuals who will be streaming new value into the cryptocurrency space. It’s likely that conservative investors will prefer Bitcoin for its longevity, simplicity, and adversity to change while more risky investors will take chances on things like Ethereum for their big vision and existing milestones.

So, assuming that a lot of capital is going to be flowing into the financial sector over the next few years, I’m wont to believe that they will be more on the conservative side of things and invest in Bitcoin or attempt to make their own cryptocurrency (à la JP Morgan).

Which is not to say that Venture Capital isn’t going to be investing in all these other technologies like Ethereum, DFINITY, Cosmos, EOS, etc… they certainly will. And it’s possible that they will be able to do with blockchain what they did with the Internet, creating many more unicorn cryptocurrencies.

To me, Bitcoin will continue to dominate indefinitely. If / when we start to see serious enterprise adoption of these newer technologies, we may very well see a paradigm shift, but it will take a few more years (cloud took 10 years to really takeoff). I’m excited to see things continue to develop and am betting on those teams which are heads down and focused on meeting a true market need.


It should be noted that I wrote this to answer that question. I don’t actually think that Bitcoin’s market cap in comparison to these other technologies really matters. Is the demand for gold really going to affect the demand for computers?