I don’t think very many people have really thought through this, and the reaction will blind side many.
Let’s sit back and really think about it.
We know that bitcoin has been coasting on brand recognition for a long time now. It stopped innovating and instead mostly maintains its position through inertia, dirty tactics, and likely heavy manipulation and shorting competitors.
Price discovery has not happened yet for most coins, they are all just pegged to Bitcoin.
Because of Ethereum’s utility and tokenomics, there is a high likelihood it will flip bitcoin.
Once that happens, some important questions will have to be answered:
- Ethereum is terrible and yet it’s the most valuable coin. If not Bitcoin, what should be the most valuable crypto and why?
- Why did Bitcoin fail? (over dramatic reaction but it will be hotly discussed)
- Why did Bitcoin stop innovating? What utility does bitcoin provide?
- Ethereum is an uncapped utility token. Is utility more important than scarcity?
I think this will send shockwaves and a lot of OG hodlers will be shaken and start selling their coins. This will cause bitcoin to spiral downwards until a floor is found, perhaps while the overall market keeps pumping due to price discovery of other coins.
Bitcoin only has the market cap it does because no one is willing to sell their coins, so supply is low. The few coins that are for sale get bid up to high prices, and then those high prices get multiplied to the entire supply to get the market cap. If supply becomes available the price can drop very sharply.
This could be the point where people start jumping ship and bitcoin’s competitors do extremely well. XMR, BCH, and LINK I think will all moon, and who knows if they ever come down low again.
XMR because it is a competitor to bitcoin, it’s used by the black market, and it has atomic swaps which will allow OGs to cash out. It has the potential to replace bitcoin.
BCH because it is a competitor to bitcoin, and it kept innovating where Bitcoin stagnated. It only makes sense that tons of money will pump into it when Bitcoin gets shaken to the core. BCH has actual utility as well with smartBCH which has an entire ecosystem forming on it right now.
LINK will go way up because people will start to do fundamental analysis and many will determine that the LINK market cap should actually be the highest because it provides the most utility of any crypto, and has no competitors.
I think this is the event we need to study and position ourselves for.
If we hold these coins mentioned, we may be able to buy bitcoin at cheap prices as their ratios go up against bitcoin.
What do you think will happen? What’s the best way to prepare?