The most authoritative crypto experts agree that crypto is a game changer that will survive the current crisis. However, figures such as Twitter ex-CEO Jack Dorsey and CEO of world-leading crypto processor CoinsPaid Max Krupyshev have very different views on the BTC vs. altcoins debate and the prospects for the near future of the market.
Crypto Market Cap Is Up 510%, But Will It Keep Plunging After Stocks?
The total crypto market cap has increased by 510% from $200 billion to $1.22 trillion since January 2020. This is a stellar result considering the total NYSE market cap is up “only” 13% over the same period.
At the same time, the total capitalization of the crypto market in May 2022 fell by 57% from its November 21 highs, and not everyone is convinced that it can hit a new ATH anytime soon. Raging inflation and rate hikes, geopolitical risks, the risk of a stock market crash — all of these are serious headwinds for crypto, which is still following traditional markets.
For example, famed investor Jeremy Grantham is warning that shares could fall another 40%, while wealth manager Steven McClurg believes this could push Bitcoin below $22,000.
On the other hand, top crypto investors and CEOs are far more optimistic — at least over the long term. Stock market crashes can come and go, but according to leaders like Jack Dorsey and Max Krupyshev, Bitcoin will not only survive the next market cycle, it will thrive like never before.
Jack Dorsey on Bitcoin: It will be the ‘single currency’ of the internet
Twitter founder and ex-CEO Jack Dorsey has been a firm believer in bitcoin since 2018 when he said, “The world will eventually have a single currency, the internet will have a single currency. I personally believe it will be bitcoin.”
In 2021, Dorsey declared, “My hope is that (Bitcoin) will help bring about world peace.” He also tweeted that bitcoin will one day “unite the world”.
And when famous hip-hop artist Cardi B asked If crypto can one day replace the dollar, Dorsey’s answer was unequivocal: “Yes, Bitcoin will do it.”
As for the practical applications of crypto, Jack Dorsey is a particular believer in Bitcoin’s potential as a means of payment. So much so that he left Twitter last year to focus on bitcoin payments app Block (formerly Square). Block uses Lightning Network (LN) to enable near-free and fast BTC transfers.
At the same time, Jack Dorsey is not convinced that other cryptocurrencies will have an equally bright future. He said: “The internet needs its own currency, and (…) it is clear that Bitcoin is the only candidate at the moment.”
Does this mean that altcoins like USDT, ETH or LTC will die? Max Krupyshev, CEO of the world’s largest crypto payment processor, has a completely different opinion.
Max Krupyshev: “Since June 1st we have processed over 1 billion euros per month”
Max Krupyshev runs CoinsPaid, the largest crypto payment provider by volume. In 2021 alone, the company processed transactions worth over €5.65 billion, and in the first quarter of 2022 the figure has already reached $2.5 billion. CoinsPaid processes up to 8% of all on-chain bitcoin transactions.
As a leading cryptocurrency payments expert, Max Krupyshev believes that the biggest altcoins definitely stand a chance against BTC:
“Bitcoin accounts for 53% of the payments we process, with the remaining 47% shared between USDT, LTC, DOGE, ETH and others. Actually, CoinsPaid was able to gain +6% of BTC market share in the first quarter of 2022, With up to 12-13% of our total transaction volume on some days. So I don’t see bitcoin becoming the single currency of the internet, at least for the next few years.
What should happen for BTC to eclipse the rest of crypto as a payment option?
“If Lightning Network becomes the standard for everyone, this could happen since the transaction fee is only 1 satoshi. We at CoinsPaid already process bitcoin transactions almost instantly using GAP600 as an insurance service, but customers still have to pay the regular gas fee (by grouping transactions, Coinspaid charges a fee of 0.70 euros as a minimum deposit fee, which is lower than the current gas fees in the blockchain). However, Bitcoin will remain volatile, LN or not, and many customers and traders will continue to choose stablecoins like USDT.’
What’s next for crypto in the medium term? Krupyshev, who worked with BTC and LTC mining companies back in 2013 and even founded the Bitcoin Foundation Ukraine, believes the cycle is not over yet:
“I think we could still have a big boost in this market cycle. If a bear market comes after that, many people will say that crypto retail is disillusioned with everything going to zero. But that’s not true: our numbers show that even in bear markets, payment volume doubles every year, so organic interest in crypto continues to grow.
It makes sense to watch the payments space versus the market, because demand for crypto as a means of payment tells a very different story than short-term volatility and manipulation by market makers.
Elon Musk: “I would like to see Bitcoin succeed”
In July 2021, online stream “The B Word” starring Elon Musk, Jack Dorsey and Ark Invest CEO Kathie Wood kickstarted Bitcoin’s run from $29,000 to $69,000. During the stream, Musk famously said, “I could pump, but I don’t fap” — referencing claims that his tweets were partially responsible for the BTC crash in early May 2021.
Unlike Dorsey and Krupyshev, who both run crypto businesses, Musk is a pure investor. He admitted to owning BTC, DOGE, and ETH — and that crypto was the largest part of his portfolio after shares in Tesla and SpaceX. He also explained his positive attitude towards BTC from an investor perspective: “If the price of Bitcoin goes down, I lose money”.
Musk also said, “I’d love to see Bitcoin succeed,” adding that he has no plans to sell his BTC.
Musk doesn’t offer detailed Bitcoin forecasts, but he’s still bullish on Dogecoin. According to Tesla CEO DOGE yet “has potential as a currency”. Incidentally, this is confirmed by the fact that DOGE sits in the top 5 payment coins with the highest volume from CoinsPaid.
Interestingly, another prominent crypto authority supporting DOGE is Roger Ver, the legendary co-founder of Blockchain.com Roger Ver. His personal top 3 picks for the future dominant cryptocurrency are Dogecoin, Litecoin (LTC) and Bitcoin Cash (BCH).
Which Crypto Will Lead the Next Bull Run?
During the bullish parts of 2021, media attention focused on Solana, Avalanche, Fantom, and Terra — all L1 blockchains that claim to compete with Ethereum. On the other hand, as we have seen, many leading crypto authorities are emphasizing the importance of Bitcoin, Dogecoin and even Litecoin.
Historically, altcoin seasons have happened after Bitcoin hits an ATH, plateaued, and started to decline. In a capital rotation, money flowed from BTC first into the largest altcoins like Layer 1 blockchains, then into mid-caps like the largest DeFi projects, and finally into micro-caps. The same could happen if we get another bull run later in 2022.
Once the current cycle is over and a bear market sets in, crypto holders will need to choose very wisely. Max Krupyshev suggests
“Those altcoins that are good as payment currencies can definitely do well going forward and that includes DOGE and LTC. But it’s also worth following the new L1’s and L2’s. And of course, Bitcoin will remain the dominant force: I don’t think we’ll see Ethereum or any other coin-flip BTC in the next two years.
*None of the opinions expressed in this article should be construed as financial advice.