Bitcoin to Regain its Market Share in 2019

According to A.T. Kearney, the No.1 digital coin will enjoy growing popularity among cryptocurrency market participants in 2019.

In 2019, Bitcoin will regain ground in terms of market share and capitalization as traders will flee risky altcoins and seek haven in a time-proven coin. That's the year-ahead prediction published by leading consulting company A.T. Kearney.

"By the end of 2019, Bitcoin will reclaim nearly two-thirds of the crypto market capitalization, as altcoins lose their luster because of growing risk aversion among cryptocurrency investors," the report states.

Regarding the main reasons for growing Bitcoin dominance, A.T. Kearney says that global financial regulators will adopt a more measured and less restrictive approach towards the industry. Their efforts aimed at reducing cryptocurrency price volatility and preventing criminal activities will help to reinstate confidence and foster market stability.

Some global jurisdictions have already demonstrated an interest in adopting the new reality offered by blockchain technologies and digital money concept. Thus, the British parliament’s Treasury Committee and MPs are calling for clear crypto industry regulation that will end the "wild west" environment and make the market more secure.

"At the same time, the US Securities and Exchange Commission will warm to Bitcoin exchange-traded funds and, with the US Commodities Futures Trading Commission, will continue to work to improve market transparency. Ironically, for cryptocurrencies to see a third decade, the only viable path forward involves this acceptance by the international financial system that Bitcoin once sought to defeat," experts add.

Apart from that, A.T. Kearney explained that the complex nature of altcoins brought to the limelight by the recent "hash wars" within the Bitcoin Cash ecosystem will speed up users’ exodus from smaller coins to established assets less prone to destructive forks, 51% attacks and other vulnerabilities common to cryptocurrencies.

“Additional “hard forks” and the continued lack of consensus among developers about a path forward will further widen the chasm between Bitcoin as the most accessible and widely recognized cryptocurrency and the altcoin community,” Courtney Rickert McCaffrey from A.T. Kearney explained in the interview with Forbes.

Currently, Bitcoin market dominance is 54%, which is significantly lower from the 88% registered in January 2017. A year later, in January 2018, Bitcoin's market share had dropped to 33%. A steady price collapse helped the coin to regain its footing.

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