The dominance of Bitcoin explained- a comment by René Pomassl, CEO of Salamantex
Bitcoin importantly holds the advantage of being the original player in the market. By being the very first digital currency, Bitcoin effectively had a head start against other cryptocurrencies. This means that although thousands of cryptocurrencies are now in circulation, none have had as much time to draw in as much recognition and coverage as Bitcoin. For many, Bitcoin is still synonymous with not just cryptocurrency, but blockchain. This has made it almost impossible to explore the crypto market without encountering Bitcoin.
The dominance of Bitcoin means that it is viewed by investors as an index of the crypto market as a whole. Generally speaking, when the value of Bitcoin fluctuates, so does the rest of the market. It’s therefore not unusual to see newer cryptocurrencies such as Dogecoin mirror Bitcoin’s price swings.
Market fluctuations make it almost impossible to determine which alt coins will be successful in the future. But, what is clear, is that cryptocurrencies are pushing closer to mainstream adoption, and as the popularity increases, so does the price.