The latest in harangues on the ICO ecosystem from influencers in the cryptocurrency community has come from Ted Rogers, the president of Xapo, one of the major bitcoin wallets platforms in the crypto market. Mr. Rogers said that despite the hype associated with the popular initial coin offering, bitcoin is still the most dependable cryptocurrency out there.
Recent months have seen bitcoin lose what may be termed its market share to other digital tokens created by ICOs and alternative digital currencies such as Ethereum, Litecoin, Ripples, and others. The combined market cap of the altcoins and ICO tokens have for the first time overtaken Bitcoin. The reason apparently is the ICO frenzy of 2017.
Ted Rogers, speaking about the dominance of altcoins and ICO tokens over Bitcoin said that BTC is still the reserve currency as far as digital currencies are involved. He went further to describe ICOs and altcoins as a circus of laziness and gambling which has added little or no value to the digital currency and assets market. He, however, exonerated Ethereum from the jeremiad saying that Eth cannot strictly be considered an altcoin making reference to its smart contract platform on which many DAPPs of utility have been built.
He made reference to the current trend in the cryptocurrency and digital application world which he said is heading towards a tokenized future by the development of overvalued tokens that are worth much less than the current market value of billions of dollars. This is reminiscent of statements earlier made by Vitally Buterin, the Ethereum co-founder who went as far as threatening to leave the crypto community unless the community focuses on creating real value that helps the society instead of moving after the money.
Rogers said that the evidence that Bitcoin is the reserve currency of the digital currency market is the fact that it is the cryptocurrency with really wide usage as a means of value transfer. Aside Bitcoin, Ethereum, which confirms more than 1.2 million transactions daily is the next cryptocurrency of utility.
Those who would want to write off Ethereum with the rest as just another altcoin without utility should look at the digital applications such as 0x, Cryptokitties and EtherDelta, which are all based on the Ethereum protocol.
Though Bitcoin seems to have lost a fraction of its market cap to altcoins and ICO tokens. It usually has the similar trend with the bigger altcoins such as Ethereum, Litecoin and Bitcoin Cash and analysts are saying that with recovery this year and as funds move from the over-bloated altcoin and ICO market, Bitcoin can easily be worth $40,000.
That vocal community leaders are speaking out on the perceived absence of utility in the coin market is actually a good thing. What the bigger coins have going for them is simply utility and the fact that they are strictly not used as mere speculative instruments, unlike most ICO tokens. This is why the investment environment must be adapted to reduce token velocity in 2018. This will ensure that ICOs whose tokens are just speculative do not have reasons to come to the market.