Increase in the number of crypto projects
Have you ever thought that having too many options today is one of the biggest reasons why the competition is heavy in the crypto world? If we have limited options, picking one from that would have been easier. With so many options today, it makes it hard for people to explore and understand their best fit. I'm sure there are new investors every year but I believe the investors are spread across various crypto projects. In addition to that the number of projects we have in the crypto world is also continuously increasing and only the fastest and most innovative horse will succeed in this race.
During the early days of crypto, there were only a few coins available in the market and most of these coins were all native coins. There was no necessity for someone to get distracted on a different project. The simple choice was mostly to invest in Bitcoin and watch the value increase and book their profits out. When I joined the crypto space, people used to talk only about a hand full of coins. The investments and training were also only around those coins. Only in the later stage, many new projects started emerging and competition has increased.
It was also easy for anyone to start a project with some base idea. Today if someone is coming up with an idea, there would be 100 other projects out there with a similar idea and some would share their success story and some might share their failure story as well.
I'm not trying to be negative here but I personally think that the price of Bitcoin might take a slow ride further than a fast ride I should say. I know that the BTC price may stand unaffected in any market condition and if it decides to increase it would start increasing. Today with the number of projects we have in the crypto space, there is a high possibility that people will not find Bitcoin an attractive crypto and instead, they will keep other alt coins in their portfolio.
I read somewhere that Bitcoin was not even meant to be a coin for trading or investment. It was just an experimental coin to showcase the potential of cryptocurrencies. Just because the concept is concrete, people are trying to bring a use case for Bitcoin itself. Otherwise, it was supposed to just be a conceptual coin and with the concept, people would create new coins and take this technology forward. Though it is already happening, that was supposed to be the destiny.
Bitcoin is also becoming more like a pride coin than a regular use case coin. So this is something that can happen where some of the old chains like Bitcoin would slow down and settle whereas the other new chains would grow bigger with fresh investors. The price of Bitcoin might start going up again only if there is a huge movement in the demand and people start believing in crypto again. But this time the climb would be a little slow because the market will also have to take the other promising cryptocurrency along with them. These are just my thoughts and it is obvious that it can even be just speculation and Bitcoin might have another blast in the next bull run.
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