Right now things are in a tremendous state of flux in the crypto markets, and nobody knows which way they will go. Following a year of mostly flat and stable pricing, things are all over the place, causing many pundits to retract predictions of an end of year bull run.
Right now, bitcoin moves the entire industry, regardless of development in different blockchains. Simply said, BTC is the king in terms of market power and influence that can bring up or down many of the altcoins. Those that are not moved are usually smaller coins that just got released to the public.
The same does nothing more than highlight how fragile and volatile these markets remain. One cannot make any recommendations of which currencies might do well in the new year.
It does seem that Bitcoin is a good choice, with its over 50% dominance. Bitcoin market shares climbed even as it’s price continue to decline. Bitcoin dominance refers to the market share of bitcoin against the rest of the crypto market. Ever since the crash started taking place, investors constantly flocked back towards bitcoin. Since November 2018, bitcoin has been occupying around 50 percent of the entire crypto market, reflecting investors’ improved sentiment.
However, the crypto space is still much undecided about the most likely turn of events that could happen to cryptocurrencies in the nearest future so it’s way better if investors only take smaller risks on this asset class.
Jameson Lopp of Cypherpunk in his latest report, also found that Bitcoin is growing on almost the metrics other than economics. In 2018, the crypto market led by the digital currency raised $3.12 billion in investment, four times more than in 2017; the academic and user interest in it grew twofold; the coin’s development repository saw more commits than any other crypto project; and its Lightning Network solution gained momentum all across the community. “Yes, bitcoin fared poorly [concerning the] exchange rate in 2018,” said Lopp. “But by almost any other metric the system is improving and growing. Those of us who are dedicated to this system shall continue to BUILD and add value; we have no control over the market, but I expect that it will catch up to us sooner or later.” With strong fundamentals behind it, bitcoin would most likely correct, but it would be more mature than the earlier corrections. Rich investors, who are already hit by a US stock market crash, would be more inclined to move their value towards safe havens like the dollar, the yen, and gold. Bitcoin, being a relatively new phenomenon, could catch their eyes once its infrastructure will be ready to handle more volume and liquidity.
Therefore, your best bet is to buy bitcoins at these low-price stages, buy more if you already have some. It’s the best cryptocurrency with the best chance of making it to the level of mainstream usage.
XMR seems to be doing really well too. This is the most powerful form of cryptocurrency that exists. Despite relative slowness, fees, and mining, it is quite possibly the most valuable asset ever created. Its wimpy price does not reflect this. You would not necessarily use XMR to buy coffees, but this the place where assets will be stored and transferred in large quantities. Large fees are irrelevant for this use case.
Despite its controversies, IOTA is progressing and getting much better. This is an investment and will need at least 5 years (which frankly, is no different from any other cryptocurrency play). In its success scenario, it is unforkable/clonable, and so it will become the best store of value by building what warren buffet would call an ‘economic moat’.