While we don’t want to come over all defensive, if only because that always looks weak, we do have a small eye roll when we read headlines lines like Bitcoin is worth more than ever, but it’s losing clout because is not really the case.
The point being made is, obviously, simply this: “Where it regularly dominated the market with about an 80 percent share, it’s down to just 47 percent in a matter of months.” But that misses the point.
Take, for instance, the UK gambling market. The bookmakers are often at pains to highlight that horseracing is losing its (percentage) grip on the market as football, golf, tennis etc etc have become popular sports for betting on. But, of course, this doesn’t mean horseracing turnover is going down, quite the opposite, in fact. It just means its (percentage) market share is going down and that is, in turn, only because, other sports weren’t available to bet on 30-40 years ago.
Bitcoin is the same, indeed you could argue, that its success is the reason why these copycat currencies have developed. Inevitably, (percentage) market share has fallen because many of the players now in the market weren’t there before. What it doesn’t mean is Bitcoin is ‘losing its clout.’
With every big player there are others who want to take a piece of the pie. McDonald’s v Burger King, Coca-Cola vs Pepsi (you get the picture). In each situation, the originator will lose (percentage) market share but not actual turnover, again, quite the opposite.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.