From the moment of its establishment until now Bitcoin has entered a level of value unattainable for them cryptocurrencies. Is there a limit to this increase, will any cryptocurrency ever get close to the price environment that BTC has set and the most important, will it always dominate the competition?
Cryptocurrency rivals
The big advantage of Bitcoin is that it was present as the first on the new market, in total he created it. That is why it allowed him to accumulate such a large capital and achieve such a high price. At present the situation is completely different. Altcoins are beginning to play an increasingly important role, and names such as Ethereum, Ripple, Litecoin can almost be exchanged with Bitcoin. It would seem that cryptocurrencies on the market are not a threat to him. However, it should be remembered that competition with much better performance may appear and even they can deprive Bitcoin of its dominant position.
Government policy on cryptocurrencies
The government is not bothered by the existence of cryptocurrencies that increase in popularity, which could lead to the abolition of their money from a pedestal. This is important from the point of view of maintaining power over society by controlling money. At the moment when most people in a given country stop using the local currency (dollar, pound, zloty, etc.), the government loses its part of its driving force and perception as someone important. A scenario in which the state currency will be used solely for the purpose of exchange for cryptocurrency is not excluded. For example, you receive payment in dollars for your work, after which you exchange them or part of them for Libra altcoin from Facebook or a crypto created by some other corporation, e.g. Volkswagen. It is not important at the moment whether this would be a win-win situation or not. Certainly not from the government’s perspective, which is why it will take action to prevent this. The policy of the authorities may be important for maintaining Bitcoin’s dominance on the market through measures limiting the inflow of investments in this sector.
As you can see, Bitcoin’s position is not endangered so far, but nothing lasts forever, so a fall or fall must occur. Mainly due to technological development and projects that will arise and will have an advantage due to new opportunities that Bitcoin did not have.
