Despite countless "expert" opinions suggesting that bitcoin, ethereum or any other prominent digital currencies will shoot up into unexplored price territory in the near future, so far the signs do not point to those predictions being realized.
Bitcoin continues to hover in the $6,000 to $7,000 range, with analysts expressing optimism or shock in turn when it moves up or down. It's an impressive value, particularly in comparison with the rest of the cryptocurrency field, but it is still a far cry from the highs of roughly $20,000 that the coin experienced just months ago. For many, the biggest question now is how to reinvigorate BTC, bringing it back up to that $20,000 range or, ideally, above into new highs. At the same time, though, the cryptocurrency space is always becoming more and more crowded. Could "purging" the lesser-known, unsuccessful digital tokens help a coin like BTC to rise again?
Bitcoin as Logarithmic Asset:
Clem Chambers, the CEO of investment website ADVFN.com and author of multiple investment books, believes that bitcoin is a logarithmic asset. Through July 2018, bitcoin was in a bear market, trending lower. Chambers believes that bitcoin has been reflective of a bubble and that the bubble has burst. However, by disregarding the non-centralized and non-mineable tokens, it is possible that BTC could climb back up to $20,000 or even dramatically higher.
Chambers suggests in a Forbes report that there may be more distance to fall before BTC hits the bottom. While Chambers is waiting for headlines suggesting that "bitcoin is dead," investors less determined to find the true bottom of the market may be interested in investing sooner. Nonetheless, whether we are at or approaching the bottom or if there's still room for BTC prices to fall, Chambers believes that bitcoin in particular and cryptocurrencies in general have been growing logarithmically, suggesting a compound growth of 26% per time period. Over 10 periods of 26% growth, then, the total growth would be 1,000%.
Chambers also believes that the key to continued logarithmic growth is whether or not the "market mechanism of BTC remains viral." How does one ensure that this is the case? One way to do so would be to clear the cryptocurrency space of unnecessary clutter.
The digital currency system remains largely unregulated, so a potential culling of the herd would have to occur voluntarily. Of course, there are also many benefits to a marketplace that includes a diverse array of digital tokens and assets. However, getting rid of some unsuccessful coins may re-shift the focus back onto BTC and other prominent cryptocurrencies, providing them the viral energy that they need to continue upward trends.
Source: https://www.investopedia.com/tech/could-crypto-purge-strengthen-industry/#ixzz5LifUA6fl