In the bull market at the end of 2020, Bitcoin has gained share of total crypto market capitalisation, closing at 70.5%. For bitcoin maximalists or for those who invest in bitcoin for diversification, this is seen as a good sign. After all, money does have a network effect, its utility grows with its general acceptance, so the winner will take it all.

However, it is still very early in the age of cryptocurrencies. Bitcoin is still neither unit of accont nor a value store really. New cryptocoins may be devised with better fundamental properties which could push bitcooin dominance back to the 50% or even 40% levels of mid 2017 when Ethereums prospects seemed bright. Or below.

Sources

• Coinmarketcap
• Real bitcoin dominance