Crypto Academy Season 2 - Week 13 - For @imagen

BITCOIN DOMINANCE

The dominance of Bitcoin is an indicator that shows how strong the market capitalization of Bitcoin is compared to other cryptocurrencies.

The way it is calculated is pretty simple, because you just need to divide the market cap of BTC in dollars by the total market cap of all cryptocurrencies, including BTC. For example, at the moment, according to data published by CoinMarketCap, the market capitalization of Bitcoin is around 190 billion dollars, while that of all cryptocurrencies is around 334 billion.

Therefore of these 57% is made up of Bitcoin, and 57% is also the value of its dominance. Furthermore, it must be said that the market capitalization is trivially calculated by multiplying the dollar value of a single token by the total number of tokens in circulation, therefore with almost 18.5 million BTC in circulation at a price of just over $ 10,000 each, the product is precisely about 190 million dollars, at the beginning of 2020 it was almost 70%, but over the months it has dropped, both due to the increase in value of some altcoins, Ether in the first place, and to the addition of new cryptocurrencies that have already gained a capitalization of relevant market, such as Polkadot (DOT).

STRONG FALLS OF BTC/USD

In march 2020, during the pandemic season (corona virus) the BTC/USD experienced a strong fall as so many traders of the platform were afraid of the coin being affected by the outbreak of the virus.

SIMULTANEOUS FALL OF THE XRP FOLLOWING BTC

Following the fall in BTC in march, 2020, the XRP all experienced a simultaneous drop at the same time.

##2ND STRONG FALL OF BTC/USD

Also in September, 2020, BTC/USD experienced another strong fall as shown in the chart below.

2ND SIMULTANEOUS FALL OF THE XRP FOLLOWING BTC

Just like in march 2020, in September 2020, the XRP experienced another strong fall at the same time as the BTC.

ALTCOINS

Any cryptocurrency or token other than Bitcoin. You've probably heard of the most important ones before: Ethereum, XRP, Tether, Polkadot or Cardano. And of course, our BEST (Bitpanda Ecosystem Token) and Pantos (PAN) are also classified as altcoins!

ALTCOIN SEASON

In general, during altcoin seasons, Bitcoin tends to lose some of its dominance in the cryptocurrency market in favor of altcoins. You can check out the related chart here. In other words, Bitcoin's market cap decreases relative to the overall market capitalization of the other cryptocurrencies in it.

The market cap measure is widespread enough to illustrate the "size" of a crypto-asset and is mostly set by multiplying the price of an asset by the supply in circulation. There are calculations with which you try to determine the start and end of the Altcoin seasons with percentages and numbers: the reason why none of these will be discussed in this article is that they lack objective support and can therefore be very misleading.

Just remember that whenever altcoins are on everyone's lips, this indicates that it is altcoin season.

ETHEREUM

Ethereum was lauched in the year 2015 (3 years after Ripple), it was founded by a Russian-Canadian developer named Vitalik Buterin.

Many people refer to Ethereum as another form of Cryptocurrency, apart from Bitcoin. With Ethereum you can write codes using the Ethereum virtual machine run time environment. Ethereum also does not require a third party to verify transaction, this therefore means that Ethereum is decentralized i.e the network is not controlled by a company, a government not even an individual.

Instead of third party verification, Ethereum transactions are verified by the Ethereum community which is referred to as miners. What miners does is that it connects a specialized device to the Ethereum network, this enables it to confirm transactions on the Ethereum block chain.

Just like the Ripple block chain, the Ethereum block chain also has its own cryptocurrency referred to as Ether which can be written ETH for short. The ether does not have a maximum limit to the amount of ether that can be issued unlike the bitcoin which will be capped at a maximum amount of 21 million coins. According to the founder of the Ethereum block chain; this amount will soon be capped to about 100 million coins.

RIPPLE

This is a block chain platform that is focused on the financial side of the digital revolution. This block chain was created in 2012; it was created 3 years before ethereum was created.

Its design, building and launching was done by a private organization known as Ripple Labs located in San Francisco. Their major objective was to introduce a block chain protocol that was capable of challenging the cross-border payment system that is used by banks to transfer money overseas.

Even though Ripple Labs focuses on the banking industry, the Ripple block chain can be accessed and used by anyone to send and receive funds, the Ripple coin (XRP) is also open to anyone for trading on the open market.

The block chain protocol that makes it possible for individuals and banks to send and receive funds is known as Ripple (Ripple is the actual technology that supports the network) but the name of the cryptocurrency that runs on the top of the Ripple blockchain is the XRP which can be used to represent a value.

The ripple platform does not require any third parties or intermediaries to verify the movement of funds, this makes it possible for people to send and receive their XRP coins on individual basis.

You can create global payments with this platform and also build your own financial solution.

HOW CAN RELEVANT NEWS INFLUENCE THE PRICE OF CRYPTOCURRENCIES IN A POSITIVE OR NEGATIVE WAY

THE XRP IN DECEMBER 2020-JANUARY 2021

The news above on the suspension of the XRP from trading is one of the examples of negative effect of relevant news on the rise or fall of a cryptocurrency. It was announced by coinbase that the XRP will face suspension, this made many users and investors of the coin to panicked thereby causing a strong fall in the XRP as at December 2020 to January 2021

THE DOGECOIN DROP

This also is a case of how relevant news can affect cryptocurrency, after Elon Musk, the owner of tesla called dogecoin a hustle in an interview, the coin began to experience fall as seen in the chart below.

THE DOGECOIN RISE

After the owner of tesla took to his twitter handle to say that dogecoin was the peoples crypto, this said coin experienced a massive rise.

SAFEMOON

Safemoon is a quite similar to the bitcoin but also with some clear differences too, the safemoon is an altcoin that was launched in march 2021. Although safemoon could be said to still be quite young, it has gotten up to 1 million users. The safemoon charges 10% fee to any user who successfully sells their token, out of the 10% fee, 5% is redistributed to the owners of safemoon.

@imagen