• It is still too early to tell whether Bitcoin will stay the top dog, according to a Wall Street veteran

  • Since its inception in 2009, Bitcoin has been the most valuable crypto asset in terms of market capitalization. Given the thousands of different cryptocurrencies that have emerged over the years, is it possible that any of them could ever outnumber Bitcoin (BTC) in terms of market capitalization?

    “We are in the top half of the second inning of crypto and right now it appears like BTC will continue at the top, but like the Red Sox came apart this year, we just don’t know,” Daniel Strachman, managing partner of A&C Advisors LLC, told us. Strachman’s background spans decades of financial activity as well as the publication of several books. “It all boils down to market reaction and investor interest,” he said. “There has been a lot of chatter about Eth exceeding BTC, which is true, but we need to play a few more innings to see what happens.”

    The crypto sector has gone through several market cycles, each of which has grown in size. CoinMarketCap, which ranks crypto assets by market capitalization, is a popular data source in the digital asset business. The dollar value of crypto assets has skyrocketed. Almost all of the crypto assets in the top 100 on CoinMarketCap have valuations of more than $1 billion, indicating the development and significance of the crypto business.

    Since Bitcoin’s start over a decade ago, technology has advanced dramatically. Discussions and comments about a “flippening” — industry jargon for a different cryptocurrency exceeding BTC in market size — have surfaced on occasion. What factors could cause another cryptocurrency to outperform Bitcoin in terms of market capitalization?

    “Market volatility, as well as investor acceptance and interest, will force one or two crypto assets to outperform BTC,” Strachman said.

    Bitcoin has gained popularity in the general public’s eyes. The asset has a fixed and comparatively finite supply, as well as a devoted following in the crypto business, particularly among a group known as “Bitcoin maximalists,” who believe that BTC is the only crypto that will succeed in the long run.

    When asked about the chance (or lack thereof) of a BTC flippening and the impact of such an occurrence, Strachman stated, “The crypto market is an asset class that is here to stay.” He continued, saying:

    “It will not go away. If a crypto asset outperforms BTC, it will be due to market dynamics that include both investor interest and market utility. Exxon, GM, Mobil Ford, and Texaco were the top five firms by market cap in 1980; today, they are Apple, Microsoft, Google, Saudi Aramco, and Amazon — things change, and that is fine because that is how free global markets work.”

    The possibility of a flippening remains difficult to quantify, while Ethereum (ETH) has been mentioned as a potential candidate in recent years.

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