Arianna Simpson, CEO and founder of Autonomous Partners Investment Fund, expressed the view that the absolute dominance of Bitcoin may be temporary and it is possible that the market situation will change significantly soon.
2 / BTC has clearly outperformed most other cryptoassets by a wide margin YTD. Expecting that this will always be the case (or that holding only BTC is the right move) strikes me as foolish.
– Arianna Simpson (@AriannaSimpson) August 21, 2019
According to her, the bitcoin maximalism prevailing in the community is not surprising – after all, since the beginning of the year, the return on investments in the first cryptocurrency surpassed that of many altcoins by a large margin. However, I am sure Simpson, it would be foolish to think that such a situation would continue forever.
“The expectation that this will always be the case (as well as the belief that keeping Bitcoin alone is right) seems to me stupid”
She added that the cryptocurrency market is cyclical. This means that the BTC dominance index has changed in the past and will change in the future.
4 / Those who have been in this space for many years should recall that this is by no means the first time the pendulum has swung back and forth – in 2017 bitcoin was old news and it was all the shiny new layer1s that were going to take over the world.
– Arianna Simpson (@AriannaSimpson) August 21, 2019
“Those who have been in this field for many years should remember that this is not the first time that the pendulum [of the dominance index] sways back and forth
Indeed, if we analyze the historical data of CoinMarketCap, it turns out that, for example, in early 2017, the Bitcoin dominance index was even higher than now – about 85%. However, by mid-June of the same year, this figure fell below 40%.
The current dominance index is 68.5%, which corresponds to the values of spring 2017.
However, Simpson emphasized that so far, Bitcoin is still “king”. If she had to keep only one asset in her portfolio, she would choose digital gold. However, in her opinion, it is much better if the portfolio is at least a little diversified.
6 / Anyone who knows me (or has followed me on twitter for more than 5 minutes) is aware of how bullish I am on BTC. If I could only hold a single asset, BTC would be it.
– Arianna Simpson (@AriannaSimpson) August 21, 2019
“I do not believe that many other crypto assets do not compete with BTC in anything. If the latter occupies the niche of “digital gold”, there is no reason that the rest of the crypto networks will not be able to perform other functions (computing, storage, etc.) ”
8 / I actually don't believe many other cryptoassets are even directly competitive with BTC – if it captures the "digital gold" category, there is no reason other cryptonetworks cannot own other other categories (compute, storage, etc etc).
– Arianna Simpson (@AriannaSimpson) August 21, 2019
Recall, earlier researchers at Arcane Research came to the conclusion that the real share of bitcoin in the market can exceed 90% .
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