The cryptocurrency market underwent a minor bull run recently which collectively improved some of the major coins’ valuation. Bitcoin [BTC] was one of them, and the cryptosphere has been very optimistic about the coin’s future in the industry. In fact, one of the analysts even went on to say that Bitcoin could breach the market cap of one trillion dollars in the next major bull run.
Pascal Thellmann, the CMO of BountyOx and cryptocurrency speculator, believes that if Bitcoin [BTC] reached a multi-trillion dollar evaluation for a store of value [SoV], it would automatically lead to an improved valuation of at least two or three other cryptocurrencies, propelling them to the SoV status.
Pascal based his predictions on an event where investors would start hedging their risk with other altcoins.
A hedge is basically an investment which reduces the risk of adverse price movements in an asset. Pascal explained that for a coin to be a formidable hedge against the popular Bitcoin [BTC], it would need to outperform the largest cryptocurrency in at least one characteristic and also have one technological advantage.
He listed out the characteristics that a potential SoV crypto needs to keep in mind, including the cost of network, code quality, decentralization, and monetary policy.
Pascal also mentioned that the SoV candidates need to have at least one different outlook in terms of Consensus algorithm, governance, game theory assumptions or DLT type.
Additionally, Pascal said that a significant Bitcoin hedge was yet to surface, but identified Decred [DCR] crypto as a likely future store of value among virtual currencies. He solidified his argument for Decred by mentioning that it had a better of Cost of attack [20x more expensive to attach DCR than BTC], praising its Consensus protocol, which was a hybrid of the PoW and PoS algorithm.