In the first half of 2021, the crypto market has brought a lot of comparisons with 2017. Bitcoin (BTC) was at its all-time low, new frontiers of decentralized money emerged, and ineligible tokens received numerous celebrity approvals.
But after the first month’s surge and subsequent sales, BTC’s performance has not been much of a lack sound. The recent market sell-off has been exacerbated by the Evergrand crisis. However, it cannot be ignored that many altcoins, especially platform tokens, have made impressive runs and in some cases, even broader market trends.
Despite the high hopes of another bull run during this half-cycle, should BTC holders be concerned that the flagship resource is inferior?
2021 by number
In January-April, BTC gained 113%, reaching an all-time high (ATH) of about 65 65,000. Based on current prices, year-to-date (YTD) profit is about 45%.
By comparison, Ether (ETH) rose 497% between January and its ATH in May, while its year-to-date has risen above 300% despite recent batting.
However, even ETH’s impressive gain is nothing compared to rival platform tokens. Cardano (ADA) posted a surprising YTD increase above 1,000% while barely yet supporting any real activity. Solana’s SOL has even dwarfed that number by more than 8,000% since January. It comes after dropping from an all-time high above $ 200. Honorable mention goes to Polygon (MATIC), Avalanche (AVAX) and Terra (LUNA), all of which made impressive assemblies in 2021.
Stephen Gregory, CEO of Currency.com, told Cointelegraph:
“Typically, there is a lot of enthusiasm for Web for.0, whether it’s strengthening metavers with ETH, or speeding up transactions with SOL, or whatever the future holds for ADA. People see holding the Layer-One protocol as a strong price choice for the future. It seems prudent to invest in sound technology and follow the pace and progress of the asset class when it comes to real-world use.
Why are Altcoins performing better than BTC?
Faced with this, the numbers actually indicate that BTC is performing less than other currencies. One reason that could explain this is the law of income reduction. BTC is the oldest resource and is twice the age of ether. Although Bitcoin has delivered dazzling returns over its lifetime যা which is making billionaires out of primarily recipients এটা is it possible that the flagship asset could deliver three or four digits of income as it ages? The whole economic model of Bitcoin is based on the principle of return reduction, every four years or so the block reward is halved, it seems reasonable.
Moreover, as previously reported by Cointelegraph, as more investors and institutions are accumulating, Bitcoin has begun to reflect other assets. We can notice this effect in reducing bitcoin volatility over time.
Arguably, the only reason markets continue to grow is because investors are constantly looking for new assets of value. Therefore, although BTC seems to be offering lower returns, it should come as no surprise that investors are interested in more volatile assets to profit from price changes.
But this leads to other questions: Is there a risk of creating a self-fulfilling negative cycle from BTC? As investors look to other assets for bigger profits, will BTC inevitably become less attractive?
Or, if we dare to imagine it, does the current appetite for platform tokens indicate that investors ’attitudes toward Bitcoin are drawing to the“ no intrinsic value ”argument? After all, strong fundamentals and the possibility of adoption are probably a big selling point of platform tokens on Bitcoin.
Mika Benoliel, co-founder and CEO of Decentralized Internet-of-Things Network Nodal, believes there is a bright future ahead for platform tokens, but perhaps not at the expense of BTC. He told Cointelegraph:
“I think the market has just begun to understand the value of blockchain ecosystems and services. That’s why Altcoin is performing so well. Bitcoin, a repository of value, is on its way and is becoming a crypto asset class with low risk and long-term investment strategies.”
Is $ 100,000 bitcoin still realistic?
From another angle, even if Bitcoin returns are declining compared to their historical historical highs, profits are surpassing other assets such as stocks and gold. At the current rate of decline, BTC will continue to provide higher performance for some time to come. As such, it seems impossible that an exile is imminent. Daniel Bernardi, CEO of investment firm Diaman Group, told Cointelegraph:
“Of course, Bitcoin seems to be lower than small and medium cap currencies in terms of percentage. But don’t forget the big difference in capital. If the price of BTC increases by 10%, it will increase the market cap by 80 80 billion. If Solana, for example, increases by 100%. Gets, the core value of the market value rises to 40 40 billion.Therefore, I don’t think there is any reason to doubt Bitcoin or its position as a market-leading asset.
As far as bullfighting goes, it’s also worth noting that in 2017, Bitcoin gained 1,900% between January and December. However, so far in 2021, it has grown by only 450%. If the price follows the same pattern, it will keep us on track for around 8 138,000 for our year-end BTC price.
This estimate is close to the মূল 135,000 year-end price predicted by the stock-to-flow (S2F) model, which continues to be the most accurate forecast for the price of Bitcoin. In fact, the August BTC closing price is, day or take, just like that To predict The S2F maker is back in June by PlanB, and September may be the track to follow.
Bitcoin stands firm
The numbers explain that BTC’s returns are actually declining throughout the bull cycle. But considering the economic model of Bitcoin it should come as no surprise to anyone. Michaël van de Poppe, Cointelegraph contributor and full-time businessman, agrees, telling Cointelegraph:
“Investors should not worry. It is actually a normal habit in the market to slow down and prolong the cycle. This is something we will see more often in the future and will actually open the door for more investors. The less bitcoin they circulate with performance and daily movement, the better as an asset in your portfolio.
However, gradually declining returns should not deviate from the fact that, by any measure, provides a healthy performance consistent with even the brightest forecast. According to Ignatius Terrenas, head of communications at Bibit, BTC is still the currency for newcomers প্রতিষ্ঠান institutions or individuals to enter space. He told Cointelegraph:
“Bitcoin is the best investment-grade crypto asset for institutional investors. And a relatively more stable range pattern could actually help Bitcoin as a gold substitute and add fuel to its long-term rise. When one zooms in five years or 10 years – Known horizons – Bitcoin returns defeat everything.
It is also impossible to say whether any of the recent platform token assemblies would have happened if BTC had been looted in the long-term beer terrier, as money flowed from BTC.
What’s more, the models show that there is still reason to believe the year-end BTC price above the six figures. Gregory of Currency.com agrees despite the growing demand for platform tokens. He told Cointelegraph, “BTC is performing better than the market but is currently lagging behind due to Wall Street macro market trends and events. However, historically, Q4 has been the strongest for BTC, and will probably repeat history before the end of 2021.”
Nonetheless, while BTC is in no danger of losing its status as a major asset of cryptocurrencies, altcoin coins no doubt give a greater chance to those who believe they can give time to the market.