The cryptocurrency market is booming as both institutional and retail investors increasingly pile into the digital assets that are frequently dubbed ‘the future of money’. Looking at the crypto market as it currently stands, and indeed as it has always stood to date, many might find it hard to believe that any other cryptocurrency could topple Bitcoin from its top spot.
With a market dominance of considerably more than 50%, the original crypto token, launched in 2009 by the enigmatic Satoshi Nakamoto, still dominates the sector. However, Bitcoin could, I believe, lose up to half of its market share within the next five years to Ethereum, the world’s second most popular digital token.
The crypto market itself will inevitably expand, as adoption becomes more and more widespread due to growing awareness of their power and value. But it is Ethereum that can be expected to grow at a quicker pace.
This is because whilst the whole crypto sector has been impacted in recent months by a bearish sentiment, it has been Ethereum that has been hit perhaps disproportionately in this regard, compared to other digital coins.
But as sentiment is now reversing and becoming noticeably more bullish, it is likely that Ethereum will experience a comparatively stronger rally than its rivals. Then there is the fact that it is almost universally-recognised that it runs on significantly better technology than Bitcoin.
This superior tech results in more uses and solutions for businesses and is, therefore, considerably more attractive to institutional investors than the current market leader.
The art world
It is precisely for this reason that we use Ethereum’s blockchain in our art business, Thomas Crown Art. 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 Ethereum’s blockchain with a unique ‘smART’ contract.
Bitcoin could, I believe, lose up to half of its market share within the next five years to Ethereum, the world’s second most popular digital token
As my business partner, the art dealer Stephen Howes, recently commented: “Using this cutting-edge technology, the art world can eradicate one of its biggest and most expensive problems – forgery – and can protect artists, galleries, and private owners and collectors.”
An ever-growing number of companies – from smaller independents to large multinationals – are beginning to use Ethereum and there are an increasing number of platforms on which to trade, exchange and store it.
Another key motivator that will help fuel the rise of Ethereum is that many ICO (Initial Coin Offering) firms held traditionally it, but they have in recent months been liquidating their holdings. This flooded the market and, inevitably, contributed to driving down the price.
But this trend, according to many experts, including BitMEX Research, a subsidiary of major cryptocurrency exchange BitMEX, is now greatly reduced. With the major sell-off over, the price will rise and Ethereum will increasingly tear into Bitcoin’s share.
With all these factors combined, Ethereum is not only set to move into the mainstream, but be catapulted into the jet stream.