Why Alts Are So Tied To Bitcoin And Why I Don't Think It Will Change Anytime Soon
Hey people of steem,
This is more of an opinion piece than a market analysis.
When swings of bitcoin happen in the market we see the alts follow. It is usually a day or two after. When one goes up so do a lot of the others. There is probably several reasons for this, one being that bitcoin is still the main crypto that people associate with and it could be litmus test for the rest of them. It is also the majority of the market (though that is changing). But I think there is a bigger that bitcoin is controlling the market.
Bitcoin is the gate in and out of crypto. When people want to buy an alt they usually use bitcoin and when they want fiat they sell bitcoin. Etherreum and litecoin are started to be that as well but bitcoin is still the main player. And as we are still in a world of "how do I spend it" changing it for fiat is very important. Unless we see a new stable coin replace it bitcoin will always by the flagship that moves the market.
For steem we would need to be able to buy and sell it directly for it to be less affected when bitcoin swings. This could be done through the site but I am sure there a lot of legalities that we need to follow. But it might be worth it in the future when steem goes big.
We need a website like localbitcoins to buy and sell steem directly.
I really like the idea of being able to buy more coins with Fiat. I think it would overall be good for the market and help single out coins that are really worth owning. It's been really fun to go to Farmers markets lately and see signs that some vendors are starting to accept crypto. I'm curious when it will start making it into real/often used businesses.
It would be really great if other altcoins could be independent of bitcoin and have autonomy. The market swings are generally moved by bitcoin and sometimes one wonders if this markets really are independent. Obviously they are not.
If more exchanges would start accepting other Cryptos directly in exchange for fiat, it would be really great. A lot of indigenous exchanges have been built for Steem like that but these are just smaller exchanges for single currencies.
What if there was one big exchange built for the Steem blockchain, where Steem and SBD would be the no.1 crypto accepted in exchange for all others and fiat.
Imagine that
I hope that will at least switch over to ETH soon. I think the writing is on the wall (or the electricity meter) for Proof of Work, and BTC may very well never recover at this point.
i agree and think the same
Well first of all if you notice the swings of the alts are coming a few days after, wait for bitcoin to go up, and then sell your bitcoin to buy alts, then wait for them to go up and bitcoin to go down and do vice versa. I mean if you see a clear pattern. :)
Yet I don't just think it has to do with the fact that coins cannot always be traded without having to go through bitcoin. I mean the current valuation of bitcoin if I would sell STEEM wouldn't affect the price that much. I buy bitcoin for lets say $8000 and sell it one second later to transfer to euro's.
I think it has more to do with the fact that most people believe in bitcoin as a thermometer for all the cryptos. Therefore if it does bad, all cryptos must do bad, which is why we are seeing these fluctuations.
This might change in the future when there will be more easy options to buy cryptos, without first having to get BTC.
Agreed.
I think the steem devs will develop such kind of services. they already announced that they will have kinda exchange to trade steem or sbd and smart media tokens directly without using bitcoin, so they will have some improvements to buy easily steem without the need to buy BTC for joining the crypto world... the media is a big deal, this could evolution steem for being resistant to the BTC/crypto inflation. greez, s error
Bitcoin will always be the coin everything is measured in. Can't go away
Bitcoin dominance will rise!