Why Bitcoin Is Falling

Yesterday, Bitcoin dumped hard, going down from about 17k to 13k. It even reached sub 13k levels during the massive contraction. Altcoins saw red across the board as $50 billion evaporated from the market. The selloff caused FOMO in the opposite direction this time, making many panic sell in an attempt to preserve their losses.

In equally important news yesterday, one of the original wallets cointaining one million bitcoin mined by Satoshi Nakamoto began withdrawing bitcoins to hundreds of wallets. Whether or not this was some kind of failsafe that had been triggered, or Satoshi was testing something is yet to be seen. This could have added, however, to the ravenous selloff.

The reason that bitcoin is going down, in my opinion, is that bitcoin will eventually be replaced. Yes, you heard me correctly. Early this year, bitcoin was actually useful. Transactions took a couple of minutes and were relatively inexpensive compared to what it is now. It takes hours to transact bitcoin now, especially if you are transferring anything under $500. Fees have gone up drastically. What does this mean? It means that bitcoin is a dinosaur compared to what is coming out in the cryptoverse right now. With smart contracts, programming languages built on top of coins, and lightning fast transactions with low fees, there is only one reason bitcoin is still used: First mover advantage.

First mover advantage means people recognize bitcoin, and it is the first iteration of cryptocurrency. Meanwhile, other coins that have better tech than bitcoin are left in the dust simply because of this first mover advantage. But, just like Myspace eventually went the way of the dodo to Facebook, so will bitcoin. Some other coin will take over in the end. It's anyone's pick to see what will end up at the top when Bitcoin eventually falls.

Sources:
Gdax.com
Coinmarketcap.com

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