If you were to play a word association game with anyone in the general public, and said “cryptocurrency”, the first thing they would say would almost definitely be “Bitcoin”. Bitcoin and cryptocurrency are effectively interchangeable to a large portion of the world, and this might be a bad thing.
By having it so all cryptocurrencies are painted with the same broad strokes that Bitcoin is, all nuance disappears and it becomes easier to dismiss the industry as a whole. This is extremely unfortunate, as many of the most interesting use cases of cryptocurrency and blockchain technology are completely unrelated to Bitcoin.
And if someone were to want to deposit money into their Binance account, they would most likely end up doing it using BTC or ETH (although Binance does allow deposits with other coins like LTC, NEO and BNB). Because of this, you have a strange correlation between Bitcoin and the entire sector.
Would-be-investors must purchase Bitcoin or Ethereum in order to put their money in altcoins, and this pushes up the price of these more “blue chip” coins. Right now, everything is valued in accordance with Bitcoin.
Part of the reason for the massive run-up of crypto prices occurred in late 2017 is Bitcoin was continuing to increase in price, and a rising tide carries all ships. The question becomes whether this turns Bitcoin into a transactional currency of sorts, and if it will end up being artificially propped up for this reason, if at least until another coin becomes seen as the transactional coin of choice. Read more from hacked.com…
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