People have always feared and/or worshipped what they do not understand. This has been evident since the adevnt of civilization. People feared the invention of electricity, the invention of the electric bulb, the Internet and the DotCom bubble and right now, it is Bitcoin and the cryptocurrency market.
The Bitcoin-craze has been called a lot of names; a bubble, a repetition of Tulip mania, fools’ gold, and many more. However, believers have invested in it and profited, while some have been scammed. It has been 10+ years since Bitcoin came to life and still, it is going strong. But, nobody knows for sure if this will succeed and go to the moon or crash and burn.
David Schwartz, CTO of Ripple, clarified a lingering question about why most cryptos are still coupled with Bitcoin, the king of all cryptos, and how it affects them by extension.
Schwartz responded by showing how the cryptocurrency space is still in a nascent phase and it could eventually fade into something insignificant.
“I think XRP is coupled with BTC for the same reason all other cryptos are. The market thinks either cryptos will catch on or they won’t but doesn’t yet really distinguish between them.”
Bitcoin has the first-mover advantage and it is the most traded asset in all crypto, along with Tether. Since Bitcoin is coupled to almost all altcoins, there is a causal effect in the price of all cryptocurrencies when Bitcoin moves by massive percentages.
To add more clarity to the above, the CTO compared the limbo that most cryptocurrencies are in to the early age of the DotCom bubble, when search engines were ‘not a thing’ yet. He tweeted,
“It’s like back in 2000 when we were all trying to figure out whether search engines would be big moneymakers or not and we were nowhere near ready to figure out whether the dominant one would be Google, Ask Jeeves, Excite, Altavista, or Yahoo!”
While the cryptocurrency ecosystem is growing strong every day, there are cryptos like XRP, Litecoin, and other projects aiming to disrupt the payments industry, which is long overdue for an upgrade.