ETH might be the Sword of Damocles to Bitcoin while Market Cap Reaches 100 Billion
According to coinmarketcap, the total market value of cryptocurrencies and cryptoassets has reached 100 billion USD, another ATH of market valuation that reflects the mass adoption.
However, the potential risk of forking of Bitcoin network still lurks in the community with its market dominance sets ATL at around 46%. Today “ams” raises his concern in the 8btc community, claiming Ethereum might be the sword of Damocles to Bitcoin if ETH grasps the opportunity.
Total market cap refresh ATH at 100 billion USD today. Source:coinmarketcap
“AMS” of 8btc forum posted a warning to the Bitcoin holders today, saying that Bitcoin would lose its opportunity if ETH continues its bull run in the upcoming fork of Bitcoin.
All of the value of Bitcoin lies in its limited supply, which is only meaningful in a monopoly market. Without dominant position in the market, Bitcoin is like an altcoin with limited supply and will loses its market support.
If ETH wants to overtake BTC, the following two month are of critical importance.
There is weak period for Bitcoin two month prior to its fork. If ETH charges on and overtake BTC in its dominant position, the forked BTCs could be treated like other altcoins.
What if Bitcoin split into BTC-Seg and BTC-2M?
The sword will fall at this point and Bitcoin might drop out the top 10 list in the worst case scenario.
But things could evolve in BTC’s favour if the community take the right direction. He also predicts if BTC grows steadily even after the fork, Ethereum and other altcoins will lose this once-in-a-hundred-year opportunity and would be suppressed forever. Bitcoin will march on its way to replace fiat money.
No need to worry about ETH. The rise of ETH is lacking community support. The two forked bitcoins will overtake ETH. However if Bitcoin is still staggering (at the scaling issue) , it would be replaced by new coins or fiat-backed digital currencies.
In terms of circulated supply, ETH is only one tenth of Bitcoin’s market cap.
In terms of the POS impact, “ams”, the OP, believes it is not an issue:
I had the impression that total supply of ETH would be around 100 million. Current supply is 70 million. The fairness issue of POS whales is not a problem. Such problem only arises if the current supply is around 7 million with total supply of 100 million.
The king’s new coin:
The mining industry and the community should take the sword of Damocles seriously. The future of bitcoin would be worn out by this civil war.
8btc will host an AMA with Charlie Lee, Samson Mow and Johnson Lau. So far 52 participants have joined in. Questions will be answered on 8th June.