Welcome, welcome to One Minute Crypto! I’m your host, Chronos, and today we are going
to look at the “Bitcoin Dominance” chart over the past years. This is the percentage of the total cryptocurrency
market cap that comes from the value of bitcoin. Basically, how dominant is bitcoin over other
cryptocurrencies? This chart is available at the popular site
https://coinmarketcap.com — just click “BTC Dominance” at the top. So, in the early history of bitcoin, it was
extremely dominant, representing well over 80% of the total value of all crypto. But something shocking happened in the year
2017, as bitcoin dominance fell off a cliff twice, once at the start of the year, and
again at the end. Looking back at this, I see three causes of
this crash: first, this was the season of the ICO craze, where everybody was launching
initial coin offerings with inflated market caps to compete with bitcoin. Secondly, this was the rise of Ethereum specifically,
as the price of Ether shot up from below $1 to more than $1000 at its peak. At one point, Ethereum alone represented almost
1/3 of the entire crypto market. And finally, this was the first time that
bitcoin really ran into its maximum block size limit, which caused transaction fees
on the network to shoot up, pushing users to other blockchains. But ever since the start of 2018, bitcoin’s
dominance has been on the rise. This surprised me, because I thought that
bitcoin’s limited transaction capacity was going to keep altcoins ahead. But even though we’ve seen fantastic innovation
coming from the altcoin space, Bitcoin has more than kept up with its growth, doubling its dominance
from 34% of the market to 68% today . So now, with bitcoin sitting at just over 2/3 of the
entire market, I want to ask: where do you think this will go next? Post below. I’m Chronos. Thanks for watching!