Bitcoin's Dominance of $BTC May Be Challenged

In the short term, Bitcoin's dominant position is unlikely to be shaken by other cryptocurrencies, but there is a possibility of being challenged in the long term, which mainly depends on the following factors:

From an advantage perspective, Bitcoin has a strong first-mover advantage and consensus barrier. As the first cryptocurrency, it has accumulated the broadest user recognition, the longest market validation period, and its global acceptance (such as compliant trading platforms and institutional allocation) far exceeds that of other cryptocurrencies. Its level of decentralization and security has been tested over many years, with network hash power firmly in the lead, and the cost of attacks is extremely high, which is difficult for most competitive coins to match.

However, challenges do exist. Cryptocurrencies like Ethereum have more advantages in functional scalability, supporting applications such as smart contracts, DeFi, and NFTs, attracting a large number of developers and funds. If future blockchain application scenarios further tilt towards 'functionality', it may redirect some demand. Additionally, if more technologically disruptive cryptocurrencies emerge (such as those with qualitative breakthroughs in scalability and environmental sustainability), or if global regulation's attitude towards 'non-sovereign cryptocurrencies' diverges (for example, showing greater support for certain types of more compliant coins), it could also weaken Bitcoin's absolute dominant position.

Overall, in the short term, Bitcoin's positioning as 'digital gold' and its consensus foundation are difficult to replace, but in the long term, it is essential to be vigilant about the ongoing impact of functional cryptocurrencies or new technological pathways.