Bitcoin Forum

Bitcoin's 'Market Dominance' Climbs Above 50% For First Time Since May

Bitcoin's market capitalization relative to the rest of the cryptocurrency market has risen above 50% for the first time in two months, according to a popularly used metric.
CoinMarketCap's Bitcoin Dominance Index has climbed as high as 51.62% today, the site reports. The last time this metric was above the 50% mark was on May 27.
Back in early March, the dominance index was above 80%, though it began to decline over the following months as prices increased in other cryptocurrency markets, falling below 40% last month. At press time, the index is at 51%.

https://www.coindesk.com/bitcoins-market-dominance-climbs-50-first-time-since-may/

Just like it didn't had any value at the time Bitcoin's market cap dominance took a dive below the 50% mark, it also doesn't have any value right now. Altcoins are well known for having their market caps be extremely inflated through various cheap tricks. It was funny reading through all the noob posts stating that Bitcoin was going to be overtaken, because Ripple and Ethereum were about to surpass Bitcoin in terms of its market cap. People still don't seem to understand the difference between actual market share, and market caps. ::)

LOL. I'm still laughing at those people claiming that bitcoin will be replaced as the top crypto. There are numerous thread about the so called flippening. But what happened? The thing didn't happen simply because ETH is just used for pump and dump by a lot of individual. And they really thought that they can overtook bitcoin in terms of market cap? LOL. ETH lost about half of its prices (currently $194)when it reaches ATH around May, the time when we heard this flippening. ;D ;D

Overtaking Bitcoin in terms of its market cap has already happened by various alts where Ripple has been the largest, and isn't a problem at all. The main point is that noobs think that just because a certain coin reaches a higher market cap, they automatically think Bitcoin is overtaken, and exactly that is where they go wrong. Market caps in 99% of the cases don't correspond to their actual market share and level of usage. I have seen an altcoin reach a market cap of $1000 billion some months ago. :D That easy it is to cheat the market cap list.

Yes, that's why I don't believed that marketcap can be used to gauge a coins usage or dominance in the market. Look at Ethereum now, they bridged the gap with them and bitcoin but it didn't proved anything. Ethereum are pump because of the ICO's that is going around for some time now. But once the tokens are dump, they lost its value. So don't based on marketcaps are yardstick totally useless. Ethereum is taking a big hammer as the price goes down to $180 now. Hope most of the users are not trap though and have exited months ago.

Exactly, marketcap isn't an indicator of superiority of one currency over other. Marketcap = volume*price. Where Bitcoin has only 16 million in circulation. There are many cryptocurrencies having billions in supply. This doesn't make any difference. Bitcoin will remain the number one choice for the investors as for now. Bitcoin has the dominance over the market no matter what the marketcap is.

The floppening, that's what happened :D


The point is that real economic activity is difficult to measure or prove, and a metric for real economic activity is what really determines the top currency, period, cryptocurrency or fiat.

It's too easy to fabricate activity in any system, the financial press have been bleating about the Chinese economic miracle for more than 10 years, but there are equal numbers of stories about how fake all the growth figures are, or how severely leveraged all the growth is, or how the growth is all supply driven with no corresponding demand (ghost cities etc).


Cryptocurrencys proven to be little different, we've had 2 years of super high transaction volume in Bitcoin itself, and it's apparently all been driven by unknown actors pushing the "scaling" conflict (the tx rate numbers are far more pedestrian ever since the apparent cessation in hostilities in the Bitcoin development conflict).

So i don't what the best metric to measure cryptocurrency competition is, despite how veracious Satoshi's design is otherwise. Merchant acceptance? Easy to fake. Maybe transaction fees as a proportion of the monetary base? Not so easy (well, not so cheap) to fake, but the tx spammers have proven that some people have deep enough pockets to skew that metric. Maybe propensity to accept Bitcoin? Not so easy to measure.

When it comes down to it, false information is not a phenomenon that cryptographic proof systems can abolish, the goalposts simply move.

All of these figures and the supposed connotations they have for and against Bitcoin are actually just that and nothing more. Whether Bitcoin can be having a dominance in terms of market share has no bearing on its value and continuing leadership.

There is no question that Bitcoin will remain that force in the cryptocurrency market whether it is dominant or not as far as figures can be concerned. As of now, there is no other coin that has the potential to replace Bitcoin and all of them are just that...alternative coins though they have their own functions and markets too.

I still don't understand the billion plus market capitalization of various altcoins such as Dash, Nemcoin and Ripple. The number of people using these coins are very small when compared to Bitcoin. Their market caps doesn't reflect this fact.