The giant of cryptocurrencies, Bitcoin has become the core of all crypto market operations. It has been paired with almost all other altcoins on the cryptocurrency exchange platforms, thus proving it’s status and success as a cryptocurrency.
Although a massive rise in the digital asset industry was caused by Bitcoin, the Coinage CEO, Chad Pankewitz believes that the market is not doing well because of it. Hence he expressed that the market should try to separate itself from Bitcoin. “From a long-term perspective, we need to take a stand, and the first move should be drifting the market away from being tied to Bitcoin,” Chad suggested.
The massive number of emerging products in the market must attempt to go beyond being associated with Bitcoin in Pankewitz’s opinion. There are a number of blockchain bases projects that are being invented, ranging from smart contracts to decentralised apps.
These individual projects have different groups behind them, hence the CEO of Coinage believes that the discoveries, versions and services provided give them enough reasons to them to be valued on their own merits. “We believe these companies’ valuations should not be tied to Bitcoin and should be measured on their individual merits, much like a stock market,” he said.
The separation from Bitcoin will pave the way for a more potent and USD backed currency, much like Tether. It has become one of the most stable cryptocurrencies in the market because Tether was designed to always trade at $1.
Chad’s problem seems to be that how complex is the Bitcoin denomination. Numbers are the most crucial in trading, hence comparing the US dollar to the decimal values of Bitcoin is unsettling for him. It imposes much difficulty to investors in the market. He said to reporters that to reduce the risk of the investors, it is important for a trading pair to have at least one stable asset in the market.
Pankewitz indicated that the uncertainty and volatility of Bitcoin is the main issue.
Out of the so many cryptocurrencies in the system, only a handful offer a dollar or Tether pair option for cryptocurrency trading. Though right now, Bitcoin pairs have the highest trading pair options in the market.
To offer a competition to Bitcoin by surpassing it in market cap, cryptos like Ethereum, Litecoin, and Bitcoin cash were projected. However, they have not been able to rise to the standard that was expected of them. It’s a plausible idea of using a more stable currency replacing the Bitcoin, however, it does not seem to happen in the near future.