Should You Value Altcoins in Satoshis or Fiat (USD, GBP, EUR etc)?
Cosmin Florin says "When you buy altcoins, do you think it's better to "think" in satoshi or USD? When you buy, do you look at the USD price or do you want to get as much bitcoin as possible, so you look at the price in satoshi? I think looking at USD value is wrong, because you might think you made some cash, but at the end of the day you can actually lose BTC. What do you think?"
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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Ive sold all my alts weeks ago, when I saw the bitcoin dominance start to increase, I sold all alts like over a month ago. It will be a long time until next alt season. You should only be trading btc usdt now
When Bitcoin is falling I like to think of my altcoins in terms of BTC. When Bitcoin is rising, then I start to price them against the dollar. I never make any money, but I'm always happy :)
Yeah, when you intended to Invest on bitcoin/ altcoin you look the value against USD, as we know USD is the global currency, pairing the bitcoin/altcoins against USD is the key to know your investment strengths this let you know the viability if the coin worthy to invested on this is an indicator. Thank you @louisthomas for this topic and the video is interesting worth resteem and upvote.
Pairing altcoins with bitcoin is a mess, all this alt-roller coaster could be prevented if tether as a project wasn't so sketchy. At least there's now a new Tether like project in the works TUSD (True USD) supported by bittrex and other major exchanges, this could bring a turn around in price making with alt coins.
Pairing Crypto with USD/EUR is out of the question, its too vulnerable, i rather have all digital assets like TUSD or Tether and alt coins.
Also, with what I have already mentioned, it seems that it would be easier to trade against USD since it’s stable while Bitcoin is volatile. If you’re trading against Bitcoin you’d have to consider the behavior of both the Alt Coin and the Bitcoin which might get complicated. In your case as you mentioned it’s the pound.
In my opinion is better to get just any crypto because my local currency is just some crazy i can buy anything so is better to invest just think youre buying any different.. I love satoshis, btc, sbd ... Cheers
Something that I think that is often overlooked is the fact that in spite of a cryptocurrency being deflationary or inflationary, if it doesn't have any usage, it can get to a pretty low value regardless. Let's put any of the random shitcoins around that had many buyers before a pump & dump and then absolutely disappeared together with the lack of usage, projects and public image.
Imagine that they were deflationary, but if they cost 1 cent and they grow in percentage, they may be worth 2 cents by the end of the decade (if anyone still has a backup of the blockchain).
BTC is deflationary, but not in a proportion that justifies the current increase in value. This means that if BTC fell more in value, there would not be a guaranteed increase in value that would compensate the buyers who bought at 19k USD or right now in any case.
I think the value with which we value the altcoins will depend on the approach with which we entered to the market, if we are for long term it is better to see the value in btc, if we are for short term it is better to see the value in dollars.
In the end there are different ways of seeing the same asset.
It could be different for each investor, most altcoins you can only purchase with bitcoin. If you plan on going immediately USD to BTC to ALTfor every buy, then ALT to BTC to USD for every sell, then watching USD prices makes more sense than watching BTC prices. If not, then you might find it easier to "park" your money in BTC between trades rather than in fiat, and focus on the prices relative to bitcoin (you'd be looking to acquire more BTC with each trade rather than more USD).
I recently wrote a blog on almost this exact topic,,,, I think you will find it interesting and you will agree,,, based on your statements above:
https://steemit.com/cryptocurrency/@i-am-mark/bear-market-or-brainwashed-masses-special-report-on-the-state-of-the-crypto-marketplace
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