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MicroStrategyâs decision to use Bitcoin as its primary reserve currency has Michael Saylor seemingly favoring the asset over altcoins.
In a Sept. 20 tweet, the business intelligence companyâs CEO stated that he considers Bitcoin (BTC) to be a crypto asset network, unlike tokens like Ethereum (ETH) or stablecoins, which he referred to as âcrypto-application networks.â
Posting a chart from analytics site Bitcoin Dominance, the CEO claimed that the coinâs dominance âhas advanced from a low of 71.05% on December 20, 2017 to 93.57% today.â
When considering network dominance in the crypto industry, I find it clarifying to separate crypto-asset networks like #Bitcoin from crypto-application networks like Ethereum & stablecoins. Bitcoin dominance has advanced from a low of 71.05% on December 20, 2017 to 93.57% today. pic.twitter.com/03cbWVyoLY
â Michael Saylor (@michael_saylor) September 20, 2020
However, Saylor is intentionally selective when it comes to this data. Bitcoin Dominanceâs figures do not include initial coin offerings or stablecoins, but rather âonly includes coins using proof-of-work that are attempting to be money.â
According to CoinMarketCap, which takes stablecoins like Tether (USDT) into account, Bitcoinâs dominance was at a yearly low of 56.67% as of Sept. 13, while Messari shows the metric closer to 59%. Both are far from the 93% dominance Saylor tweeted. Ethereum and DeFi have been driving alt season this year, as the 10 largest DeFi tokens now represent a market cap of roughly $9 billion compared to Bitcoinâs $200 billion.
Though initially claiming âBitcoinâs days are numberedâ in 2013, Saylor has turned bullish on the crypto asset in recent weeks following MicroStrategyâs purchase of $250 million worth of BTC as a reserve currency in August. He announced on Sept. 14 that the firm subsequently bought an additional $175 million of BTC.
âBitcoin scales just fine as a store of value.â
Saylor isnât alone in the crypto community in discounting the vast majority of altcoins. Emin GĂŒn Sirer, the creator of the first proof-of-work-based crypto, said in April that Bitcoin maximalists are correct to label â95% of the things out there as scams.â
âTheyâve just recycled something that belongs to someone else,â he said.
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