As it is known, crypto-supporters (bitcoin bulls) widely believe that the increase in the capped supply of all cyber-coins will boost bitcoin’s value to go up. At the same time, naysayers or bitcoin bears say the opposite — that it will drop. Meantime, researchers under the aegis of St. Louis Federal Reserve Bank (USA) found out that therefore BTC’s value will decrease.
What If There Are More Altcoins?
Recent research by the Federal Reserve Bank of St. Louis shows that the generation of rival bitcoin pals might suppress all existing coins, including BTC, and make their prices lower. Also, the researchers concluded that the future of bitcoin's and its brethren’s value is more likely to remain tied to two extremities — either the value of cyber coins will go down or up.
However, it is not only the existing cryptos which will suffer the down pressure from novel coins. Researchers imply that the American dollar price of bitcoin will also be related to its altcoins-tied exchange rate.
The report states that bitcoiners anticipate BTC to appreciate in relation to its pals. Or bitcoin’s market cap all remain constant in relation to the worldwide crypto market cap. However, it’s not the case, the researchers found.
They concluded that the growing supply of bitcoin’s pals will make the price of the latter, as well as its market cap, subdued. Yet, bitcoin is not likely to plunge to zilch as it has primary value. It comes from the demand for its decentralized database and access which requires no permission.