Bitcoin critic Peter Schiff via his official Twitter account mentioned that Bitcoin’s dominance has gone below 40%. It is in tandem with the volatility its prices have been experiencing the last couple of weeks. The last time it had such low dominance was as far back as 2018.
Loss of dominance can be very detrimental to the platform. The availability of all other blockchains and projects opens up new opportunities for investors and crypto enthusiasts. Following the recent volatility, Peter Schiff, through Twitter, advised traders to depart from the platform because ‘even if Bitcoin is scarce, its alternatives are not.’
In line with his words, there are many alternative platforms and projects. However, it is noteworthy that in the last 24 hours, Bitcoin was not the only platform that suffered a plunge in valuation; other primary tokens such as Ethereum, Binance coin, and Dogecoin did as well.
The drop in the valuation and price of bitcoin can be traced to the American stock market. After a period of turbulent trading, stocks were down in the last 24 hours due to worries that the Federal Reserve will keep hiking interest rates.
Also, recent activities concerning the platform can play a part. Last week, Bitcoin evangelist and billionaire; Micheal Saylor had legal issues with tax evasion. This kind of news, no matter how minimal, will affect the valuation of crypto platforms.
Some Bitcoin traders are panicking and are selling as fast as possible. However, many Bitcoin traders are staying glued to the platform. They have accused Peter Schiff of singling out Bitcoin’s dominance because he is a Bitcoin critic. Also, they remain adamant that Bitcoin is here to stay and will surely surge because it is “scarce.”
Just like many items, scarcity works in tandem with value. The current valuation of bitcoin ensures that it will continually be used as a unit of account and value signal against all other cryptocurrencies.