Bitcoin will lose 50% of its cryptocurrency market share as Ethereum dominance grows. It will be within five years. That’s according to Ian Mcloed of Thomas Crown Art, an art-tech agency that he established with art dealer, Stephen Howes.
He made the bold claim as Ethereum, the world’s second largest cryptocurrency by market cap, began a price recovery on Friday after being hit hard with a major sell-off in recent weeks. Bitcoin had also been in decline, but it bounced back quicker than its nearest competitor.
Indeed, Ethereum had crashed 85% overall this year. However, it regained ground late last week, jumping almost 14% after its most recent plunge, only find itself trading again 10% lower once more in the past 24 hours.
Mcloed observes: “Turbulence is a regular, and sometimes welcome, feature of the crypto sector. Therefore, the Ethereum rebound was, and is, inevitable. But not only do we think it will rebound considerably before the end of 2018, I believe that over the longer time it will significantly dent Bitcoin’s dominance.In fact, I think we can expect Bitcoin to lose 50% of its cryptocurrency market share to Ethereum, its nearest rival, within five years.”
Why so confident of Ethereum dominance?
Ethereum offers more uses and solutions than Bitcoin, and it’s backed with superior blockchain technology, Mcloed argues. “This is why we use Ethereum’s blockchain in our art business,” he says. “It has allowed us to create a system to use artworks as a literal store of value; it becomes a cryptocurrency wallet. It also solves authenticity and provenance issues – essential in the world of art. All our works of art are logged on the Ethereum’s blockchain with a unique ‘smART’ contract.”
He concludes: “Whilst there will continue to be peaks and troughs in the wider cryptocurrency market, due to its inherent strong core values, Ethereum will steadily increase in value in the next few years and beyond. Unless Bitcoin does more now to tackle scalability issues, and improves the technology it runs on, we cannot see how it can catch up with Ethereum over the next five years or so, when the crypto market will be even more mainstream.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.