Imagine that Motorola company, sells its new smartphone for $1.000.000.000, while in the same time similar Huawei or Xiaomi smartphones are priced at around $1,000. Such scenario would be crazy because no one would give a million times more money for a product that has essentially the same features as alternative products. That is why the above scenario is not possible in reality.

But... in the crypto world, such scenario is exactly what can be observed.

In the crypto world people are paying a million times more for bitcoin than for alternative coins, even though these coins essentially have the same features as bitcoin. Functions and features of cryptocurrencies are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptocurrencies that are priced below $0.001 have all these functions and features. But, the previous media attention and hype created a situation where people pay thousands of dollars for bitcoin. They pay a million times more for bitcoin than for alternative coins.

Of course that being the first in the industry and having reputation means something. For example, Motorola was first in the mobile phone industry, has good brand reputation and consumers trust it. For that reason they might pay more for some Motorola phone than for the same feature Huawei or Xiaomi phone. But, no one would pay a million times more, since phones are just plastic, metal, glass, chips, resistors and transistors put together.

The same is with cryptocurrencies. They are just addresses, numbers, databases, and protocols that enable the elimination of middlemen, low transaction costs, immutability, anonymity, transparency and traceability of transactions. In that sense, bitcoin is equal to thousands of other cryptocurrencies. It is the same thing with different name. Accordingly, no rational reason exists for bitcoin to cost millions times more than an average coin. There is no reason for people to enter into fast, transparent and cheap payment system for $7,000 if they can enter it for $0.001.

Once the hype is gone, Bitcoin will simply go down to the price of an average coin and settle around $0.001.