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Bitcoin Rally or Altcoin extinction? Top Trader sees gloomy future for ETH, XRP and Co.

According to Coinmarketcap, there are currently 5,600 cryptocurrencies. However, for 11 years, Bitcoin managed to keep its supremacy. The cryptocurrency invented by Satoshi Nakamoto was the biggest innovation in the crypto sector, so it is no wonder that BTC has the most market capitalization. Top BTC traders think that a mass extinction of Altcoins will precede the next Bitcoin rally.

J. Frank Sigerson

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This picture represent the crypto market.

Despite the massive losses in the wake of the corona crisis, Bitcoin has had a good year until now in 2020. The year-to-date performance until Sunday, July 5th, was over 25%, which means that BTC even beats the US S&P 500 share index in the first half of the year. However, these price gains seem almost meager compared to the gains that some old coins have made this year to date. These include Ethereum with +72% and Tezos with +65%.

However, this appearance of dwindling Bitcoin dominance can be deceptive. While some see a new Altcoin rally like in 2017, others are not so sure about this point. A well-known top trader in the crypto sector is more likely to believe that there will be an extinction of Altcoins before the next long-awaited Bitcoin Rally. What is true about his thesis?

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Altcoin extinction before the next Bitcoin Rally?

The top trader from the crypto sector is “Joe007”, who has made a name for himself by positioning himself at the top of the Bitfinex Leaderboard. In a new Twitter post from July 3rd, Joe007 makes a bold thesis when he writes that in his opinion an Altcoin “mass extinction” will come before a possible next Bitcoin Rally. Specifically he wrote: “I believe the mass extinction of Shitcoins will likely precede the next Bitcoin rally. Make it whatever you want.”

The statement of Joe007 can be seen as very controversial, as there is always hope among some Crypto fans for an Altcoin season like 2017. But the trader seems to have a critical attitude towards everything that is not called “Bitcoin”. So he also shot against the DeFi area, which is based on the second largest and therefore most promising cryptocurrency besides BTC:

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“DeFi is nothing but another marketing ploy by a shadow gang of snake oil sellers behind Ethereum. It is obvious that they are trying to create another ICO-like mania. With the same 0 real benefits in the real world.”

Other experts also see BTC as the only true cryptocurrency

The top trader Joe007 is not the only one who has radical views on Altcoins. So Adam Back, the CEO of Blockstream, who was mentioned by name by Satoshi Nakamoto in the BTC White Paper, wrote on Twitter on June 30th: “There is only one cryptocurrency, Bitcoin.”

The programmer told Bloomberg in early June that Bitcoin is on track to reach $300,000 within the next five years. This would mean that BTC would increase by more than 3,000% from its current level.

Max Keiser, a BTC proponent who is also well-known in the crypto sector, is a so-called “Bitcoin maximalist” in addition to Back. In a recently published interview, Keiser explained his preference for digital gold as follows: “There is no coin out there that can do something that Bitcoin is not already doing or will soon be able to do.”

As it can be seen from the examples of Joe007, Adam Back and Max Keiser, many crypto experts agree that Bitcoin is the only true cryptocurrency and that Altcoins are doomed to failure in the long run. But will they be right?

Basically, it can be said that the 11-year supremacy of Bitcoin is no coincidence, despite almost 5,600 other cryptocurrencies according to Coinmarketcap. The cryptocurrency invented by Satoshi Nakamoto was the biggest innovation in the crypto sector, so it is no wonder that BTC has the most market capitalization.

However, only the future can show whether all other cryptocurrencies are automatically doomed to failure. One thing is certain, however, that the world does not need 5,600 cryptocurrencies and 99% of them will become worthless. In this scenario, there would still be room for some other “special cryptocurrencies” besides Bitcoin.

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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.