In the cryptocurrency world, there are certain factions that don’t seem to like each other. Bitcoin maximalists, ETH maximalists, and others are often at odds against each other. Ironically, they often criticize the other side without looking at the fact that they are also extremely biased against other coins.
But here’s the hard cold truth. Bitcoin needs the success of altcoins. On the other hand, altcoins also need the success of Bitcoin. Let’s learn more about how it works.
Crypto Trends And Bitcoin Price
The Bitcoin market has been changing very rapidly in the past few years. Unlike its early years, where the price was mostly affected by just new adopters, the Bitcoin market is now affected by whatever attracts the crypto traders. And usually, they are more attracted by the newest trends in the altcoin space.
Take a look at 2017, as our example. The 2017 crypto pump mostly happened due to two things. CryptoKitties’ virality at the time and the ICO craze. Yep, most of the newer investors in 2017 decided to get into ICO sales because they were hoping to get rich quickly from them. And their point of entry from fiat to the ICO world was made through BTC.
That’s actually why BTC and ETH went up very high in 2017. Without the ICO hype and CryptoKitties, things might be very different at the time. Many legitimate projects that were started as ICOs might not be able to raise funds if not because of the wave of new money.
This theory was proven again in 2020 when DeFi tokens like YFI, SUSHI, UNI, and COMP made it to the news in the middle of the year before September. BTC had been able to pump slowly but surely because of traders’ enthusiasm in trading and pumping DeFi tokens.
So, it’s safe to say that crypto trends actually affect Bitcoin price. Even though BTC maximalists would try to deny this fact but I don’t think Bitcoin and any older gen of altcoins would grow without any new trend in the industry.
Altcoins Also Need Bitcoin To Grow
Of course, it’s never been a one-way street. While it’s true that Bitcoin needs the success of new altcoin trends, we can also say the same thing for the other way around. Altcoins also need Bitcoin’s popularity to grow. It’s been proven that the majority of new money had to be exposed to Bitcoin first before they started getting familiar with altcoins.
The frontline of crypto space has always been Bitcoin and it will continue to do so for the foreseeable future. When Bitcoin gets adopted more and become the worldwide headline for whatever reason, there is more and more new money that might enter the crypto scene. Whatever is good for Bitcoin believers can also attract these same traders to a big set of altcoins.
The two basically need each other. In a bull market like 2017 or mini bull market like this year (2020), all of the decent cryptocurrencies with good fundamentals have generally been going up despite having bad weeks or months from time to time.
Maximalism Doesn’t Work In A Niche Like Crypto Space
Everybody who’s been investing in the crypto space understands that it’s still a niche. Yes, there are casual traders who have been HODL-ing a decent amount of BTC, but usually, they are very ignorant when it comes to learning new things. That’s why BTC or ETH or whatever coin maximalism doesn’t work because the outsiders see the crypto industry as one same thing.
I rarely hear someone who’s skeptical about Bitcoin (and doesn’t hold any crypto) suddenly say the positive thing about Ethereum or others. They often have the same negative prejudice about every cryptocurrency out there if they don’t believe in BTC. This is why crypto maximalism doesn’t work and should never be supported. At the end of the day, the whole crypto industry supports the same thing, which is to decentralize the financial industry.