BTC Losing Market Share
When Bitcoin falls, Altcoins rise. A clear inverse correlation has developed over the years and it looks to be strengthening. This trending inverse relationship is best seen in the percentage of total market capitalization graphic from coinmarketcap that I’ve highlighted below.
Actually looks like Alts have been holding up relatively well in 2018, especially the “Others” group. I think this trend will likely continue, perhaps even accelerate, and Bitcoin will eventually be just another crypto in the middle of a big pack below 10% while the “Others” category moons above 50%.
Some might call this kind of thing a general flippening, others metaphorically talk about levees breaking, but all agree that we are going to see a massive transfer of wealth sooner or later whose biggest beneficiaries will be winners like STEEM and BitShares.
In addition to showing a generalized inverse trading relationship, perhaps this percentage weighting is also giving us a glimpse into the not too distant future.
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I agree on the fact that the Bitcoin dominance might decrease over time but it most likely won´t loose its role as the leading coin after all, at least in my opinion. Actually I rather expect it to stay around 25% eventually in the long run while having the value of some alts like BTS & Steem rise massively due to others failing and crashing to 0$
A very possible scenario.
Hi @cryptographic ! What you mention here is a real fact! Last year, there was a time when Bitcoin went down and the Alts went up with lots of Power. A few months ago until today, Bitcoin regained some of its market coverage vs. Alts. But know as you say its starting to grow the inverse correlation again. Hope this continues.
The crypto market also needs more FIAT injection, because many people speak about getting into 1 trillion this year, but isnt that a simple thought? Considering the total crypto market was just at billion to hit the 1 trillion mark, when it was at 800 billion on December?
And yes, the biggest transfer of wealth to Steem and Bitshares will happen sooner or later, hope some of it in the next couple of months.
By the way, I just posted a New Chapter of the Full Steemit Guide. Your thougths and support in the past will always be appreciated!
Chapter 10 of 11: 30 Useful Apps on the Steem Blockchain - This is part 10 of 11 Chapters (Full Guide) to help new people make their way on the Platform
Regards, @gold84
The charts don't lie! In fact, it's a fact!
Well, it's a fact about the past anyway. Perhaps it will continue into the future, and perhaps not. My money is on continuation. 😎
Agreed @cryptographic ! It would be great if you could visit my blog from time to time, and if you could add some of your knowledge to the posts that are interesting for you.
Regards, @gold84
I'm glad that someone has started noticing the trend now. How the market capitalization is gradually moving from bitcoin to altcoins. I would say its likely cos of the value been added by some of these altcoins as they have better use case than bitcoin. I expect 2018 to be the year for altcoins
2018 will be the year for [quality] altcoins!
True and i like the emphasis on "[quality]". We are having too many useless altcoins without valuable use case, just there to fraud investors.
This correlation Is very interesting. When, not if crypto takes over especially Steem and BTS I will thank you, because thanks to you I got interested in BTS which I wasn’t before I found you. Anyway, I kind of feel that once BTC starts crashing for real, it will freak everyone out and everything will start tanking. I think everyone might cash out to fiat including alts. But a bit after, people will re-enter into good alts such as Steem and BTS of course. To cash out to fiat though, you're subject to capital gains,...which is around 20%, right? Is it better to pick some good alts and BTS once the sh.t hits, or cash to fiat and re-enter? I mean, 20% is a lot. I still debate this in my head. I honestly need a plan so I can stick to it. For now my plan is to hold and don’t panic.
Cashing out some profits is expensive when factoring in tax liabilities, no doubt about it, and it might be a much better bet to move those profits into quality alts that have the potential for enormous gains, I agree.
I apologize for the amazement of all that I referred to as true my friend but to me this bitcoin libana this requires a lot of time for me it is a great request now
We exploit this time to promote me steemit and bring in new investors
Bitcoin has brought up its market share again as investor go back to established and quality names. The reality is that many altcoins ran up too much; some without having a working product which is very aggressive even for revolutionary technology changes. As the reality syncs in that a large number of these projects will fail for many reasons (money does not solve it all as seen in the dotcom bubble), many investors will flow to those select few that are successful in their projects and benefit from increased adoption.
The next altcoin cycle will begin once Bitcoin prices increase again and cause FOMO. By the time new investors look at the price, they will think it is too expensive and look to altcoins to get involved in the markets as most of their prices are more “cheaper”. This will cause demand on the altcoins again, particularly those with low price values per coin (not market cap).
Working products with much greater potential will translate into much greater gains indeed.
Hello. @cryptographic
Something that bothered me so much that you started looking at me looked negative
And I do not want this I am here to develop and bring me my life and Jeddah many difficulties I work for months and the results are very weak and I still do not want to take anyone negative about me I respect everyone
While I HODL a variety of small bags of altcoins, I have no BTC at all currently.
And yet, some part of me is fudding about the possibility of major long term BTC dominance.
Thank you for this post, I will sleep like a baby this night :)
I'm so glad that I was able to help with getting a good nights sleep!
BTC only began losing significant market share to alts when the 1MB limit was hit. One of the reasons why Bitcoin’s usage is also at its lowest level in two years. Many users were driven away by outrageous fees and merchant un-adoption. Also the last time Bitcoin had this few transactions as today was in beginning of 2016. At that time, daily transaction numbers were growing. Now they are rapidly declining. This is concerning and is not cause for celebration. However, I would like to point out that most bitcoin holders are not traders, they buy and hold long therm just like I do for multiple reasons.
All good points, but those long term holders may find themselves wishing someday that they had taken more profits.
I agree, but that’s the problem with human psychology, they don’t sell when they have already profits, they want more. They usually sell when they start loosing. That’s why there is only few people make milions if not billions, because they don’t get emotions involved. With trading you have act like a robot with no emotions. With emotions involved you get destroyed. I learned the hard way when “I was a trader”and I’m glad I went through this lesson.
Thank you so much!
Bitcoin is the original currency. Like gold it will always be a back up when the rest struggle. So it makes perfect sense that when the alts are going down then people will move their money to the more stable and valued bitcoin.
In the long term I see it acting like a reserve to hold the value of the market as people will have most of their money in the more useful and purposeful alts like steem and ripple. It will always be there holding up the market but more as a stop gap than a functional entity.
And vice versa. 😉
And the dominant trend too.
Oh, I have actually written an article about how Bitcoin is going to be one of the alts (even though this is theoretically impossible), but meaning that it will lose so much position compared to altcoins that people will have a hard time spotting it on the list of the cryptocurrencies.
I really believe and will continue to believe it. The technology that Bitcoin is based on is quite old and unable to scale, and without a hard fork to raise its potential, I don't think it will be so popular in the future.
But who knows, maybe it will still be used for big transactions only :D
I agree 100%.
It might be able to survive being just a store of value . . .
It definitely will still be in use, cos it has many uses--being a store of value, for example; even a collectible lol. Lightening is going to help really well, too. And it might still be popular as the first of all, but yeah the altcoins are definitely going for a hostile take-over.
With all due respect, i disagree with your argument, i think bitcoin will still continue to dominate the crypto market for a long time, altcoin will gradually appreciate in value but bitcoin will not lose its value or position to the extent that people will have hard time spotting it.
I personally feel that in time to come there will be stiff competition between bitcoin and altcoin and i still see bitcoin dominating them all but not with the current margin...
Thanks for your view @mejustandrew
I accept and even appreciate the fact that you sustain your point of view. I have just one queation: why do you believe it is going to be like this?
@cryptographic,
You highlighted a great figure! As you said, "Other Crypto Currencies" are trending! If that happen, it will be a good sign for STEEM and BTS! One more figure I have noted there! RIPPLE and BitCoin Cash (SH!T COINS) are dropping by marketcap wise! It's a good sign and with SMT I think STEEM will be at top 10 and BTS will follow the way of his elder brother (STEEM). Thank you very much for highlighting these figures!
Cheers~
Yup, the junk will sink and the cream will rise to the top . . . sooner or later.