Bitcoin Forum

Bitcoin is the King of all cryptocurrencies hence it has altcoins such as ETH, LTC, DASH etc. as its followers\s but i get a litte confuse how bitcoin's supremacy tends to dictate the price rates of most altcoins.

it is because the altcoin market is like Penny Stocks market. there are thousands of useless altcoins such as ETH, XRP,... in that market that people are only using for one purpose: to make profit. and that profit is mainly on their bitcoins.
so since altcoins have no other usages apart from fueling the wallets of bitcoin owners whenever there is a price drop in bitcoin everyone abandons altcoins as they are sinking ships.

i don't know if we can call that "supremacy" or "king",... it is just that bitcoin is good and it has real world usage. and that usage is what's giving it value and keeps increasing it in the long run. while others are pure speculation which is why they can't sustain their prices.

You are right that the vast majority of altcoins are worthless, but not all. There are a small handful of altcoins out there that also have real world usage and that are achieving things that Bitcoin isn't.

As long as you can only buy altcoins with Bitcoin, the prices will track each other. As more exchanges introduce fiat/altcoin pairings, the market should decouple from Bitcoin's price.

preface:
I think ALL altcoins are basically worthless.
The point where they differentiate from Bitcoin (protocol choices/hashing algorithm etc..) is actually an inferior one, having been discarded by bitcoin due to security risk/protocol efficiency/ecosystem robustness.
Bitcoin is a huge bet but while I don’ know if in 10 years bitcoin would be worth 1 million or zero (or course I have an idea), I am absolutely sure that in 10 years every present shitcoin (all of them, but bitcoin) will be worth ZERO.

Having said that.
Dominance is the bitcoin market capitalisation over the total market capitalisation of all cryptocurrencies.
When bitcoin was the sole cypto around market dominance was 100%.
You can see a graph of market dominance here:
https://coinmarketcap.com/charts/


In a bull market they tend to rise more than bitcoin: hence in a bull market the bitcoin dominance tends to lower.
Conversely in a bear market those coins tend to drop faster than bitcoin: the bitcoin dominance tends to rise.
Whay that? most altcoins can be traded only versus bitcoin: when market rises avi people tends to sell Bitcoin (larger market cap) to buy smaller cyptos that can be lifted more with less capital influx.
The everse happens ib a bear market where investors, actually scalpers, revert to bitcoin as a safe haven in crypto land, to protect their investment (they cannot sell for fiat in a single trade).

Hope it clarifies!
F1

Altcoin is inspired by BTC, which is the symbol and leader of all encryption. If BTC is destroyed, altcoin will also be destroyed.

it is not only about the speed of rise/drop. it is about the fact that there is only 1 bitcoin which is going against 1700 altcoins. that is why calling it "dominance" is wrong to begin with. if altcoins were good then the real dominance of bitcoin should have been 0.05% instead of forty something! being at forty... just proves that altcoins are indeed shitcoins.

the altcoins have other markets including USD and other fiat, other altcoins like ETH, LTC, Doge,... and even stable coins like USDT. the problem is people want to use their bitcoins because they want profit on their bitcoin not on their fiat or altcoin,... which is why they trade altcoins versus bitcoin mostly.

Most people believe in BTC long term and they trade Altcoins for the purpose of increasing their BTC Stack, I think BTC is like a center in the Cryptocurrencies economy because every exchange offers BTC trading pairs BTC and the fact that BTC is the top coin being traded for Altcoins

This is a skewed way of looking at it. If you remove the 1650+ coins that obviously trash, as well as the trash coins that somehow made their way in to the top 20 (BCH, TRX, XVG, EOS), things are much more even. It's not fair to combine ETHs share of 20% with a bunch of scam coins.

Most of the prices crypto currency prices were depends on the bitcoin because we just think bitcoin as the king of crypto currency so we would like to invest on other coins because of the bitcoin's growth.
But the prices of cryoto currencies were based on the demand and supply so if other crypto can create more trust than bitcoin then it can influence the market.

it is not even fair that ETH has that much of the share. your problem is that you think just because it is rank #2 it makes it a good coin different from the rest of the "bad" coins you named here. the fact it ETH is the worst. it has about 72 million coins premined. it is like Ripple and a lot of other coins, they have unaccounted for supplies which makes their market cap fake.

Actually, no matter how many and how much Altcoins you will keep but in the end it will be traded to Bitcoin to earn more fiat.This is what really is happening with most of the investors in which it will make more Bitcoin price to become more stable and strong against the Altcoins.

Because bitcoin is the biggest coinmarketcap, the market is still small and therefore bitcoin can affect the overall price of the Altcoin. As bitcoin decreases, people tend to sell Altcoin to the BTC leading to lower Altcoin prices, but the bitcoin future will diminish to Altcoin's price.

As the pioneer and successful by the existence, no doubt that Bitcoin is the most famous of crypto inside the space either outside. Bitcoin has inspired other altcoins so far and used by all altcoins as the main payment before go to FIAT. Logically, if Bitcoin price is falling refer to fiat then most of other altcoin will follow. Here is the simple case:

1 BTC = $6000.
1 XXX = 0.001 BTC ~ $6

If BTC is going to be $ 10000, then 1 XXX in BTC is (assumed to be same refer to BTC) still 0.001 but refer to FIAT will be $10000/$6000 ~ 10/6 times ~ 167% gain ($10). And vice versa, if 1 BTC become $ 4000, then 1 XXX in FIAT become:$4 as 67% of initial fiat value.

Even there is a few coins/tokens are not affected by BTC because the people are trusting these coins/tokens by it's utility as there is useful advantages on the project application provided to people.

While I don't disagree with your points, is it not acceptable for the creators to make money for their work? Satoshi's wallets hold a million Bitcoins.

i don't think bitcoin being "supreme" or "king" has any effect on altcoins. if they were good then they would have grown in spite of bitcoin and whatever it is doing.  the problem is that altcoins are no good.

and it is the same thing everywhere else too. for instance just because Apple exists and creates good cell phones it doesn't mean Samsung can not grow big and gain users. Samsung is also considered a good smart phone creator and millions of people use their product. but a Chinese company creating shitty phones is not capable of competing with them.

that is exactly the problem right there. you are comparing two different things that are not even similar.

an altcoin dev who wants to become rich, premines his coin, runs an ICO,... so in an instance (usually without even doing much since they mostly copy code from each other) they gain a lot of coins which worth a lot of money.
now you say Satoshi, he did NOT premine bitcoin, he did NOT run ICO, he did NOT get paid to create bitcoin. what he did was that he (like many others) started mining bitcoin on a level playing field. if he owns 1 million bitcoin he deserves it, many others also own 1 million bitcoin since they mined in early days like Hal Finey for example.
... and that is a huge difference.

While I see your point I cannot fully agree:if the Bitcoin experiment really succeed you won’t need to convert to FIAT at the end.
You won’t because the “good money” (BTC) will ultimately prevail over “bad money” (FIAT)

I don't know how that simple question lead some members here into answering altcoins being worthless. The question is how BTC is affecting other cryptocurrencies in the market. The answer is simple Bitcoin being the market leader means that BTC basically has control on where the market will go, its influence makes other altcoins go on a rally or a correction. But does it make other altcoins worthless? I don't think so, Ethereum and XRP (which you have mentioned are worthless) also have their own value based on their own demand. If they are worthless their value right now would be 0. Also keep in mind that they don't always have a positive correlation in the market, sometimes when BTC is on the rise, others are on a fall as all traders have sold their altcoin position in order to participate in BTC's rally.

Sorry, I have never experienced a crypto negatively correlated to bitcoin. Do you have any meaningful data to support your claim?
Tether is of course out of context here.

Well Bitcoin is the first cryptocurrency ever created. All the other coins/altcoins were created later on after copying the idea of Bitcoin. So they are kind of sired to Bitcoin. When Bitcoin goes down, they all go down and vice versa. Bitcoin is the King of cryptocurrencies and Satoshi is the father.

I think at this point, the altcoins are working great. Coins like ICX, PRG are taking a lead and are coming up with amazing projects. PRG for example is super undervalued right now but its price shall increase and go really high. So, its performance itself can affect its price.

In my opinion, all kinds of electronic money are attributed to the price of BTC. Therefore, the BTC has a great influence on the currencies, causing the market to fluctuate around the value of BTC.

The altcoins are really good right now. They have a good team and their performance is very strong. Coins like TAU, DRGN which are soon to be listed on binance can influence their prices themselves, there is no need for bitcoin to affect their prices.

The last few months have been pretty crazy. There have been some steep climbs and heart-stopping drops making for a roller coaster of emotion that’s not easily controlled. The price action is both thrilling and at times, painful, so it’s easy to lose sight of what you’re investing in.

Bitcoin is the pioneer in crypto currencies and all the altcoins are valued only in bitcoin and not even in dollars.Until now,no other altcoin has been able to gain the trust of people worldwide.

 Mainly btc is the father of all the crypto coins based on this people actually follow the btc price if the price of btc increase then people like to invest more but if its fall then investors withdraw their money from market as a result altcoins also affected or victim .

I compare btc with gold and every other fiat is backed by it, so are the alts and when the crypto gold is not stable the alts follow it and if a 10% fall happens in gold than others experience much more fall than it and vice versa.

Agree.
I only found more interesting the first derivative of the dominance to the bitcoin price, rather than the value of dominance.
But you are correct and I do agree!
Will you ever see this post?

My two cents,
F1

It affect it so much since all altcoins are linked directly to Bitcoin. Meaning, to buy any altcoins, you need bitcoin through which you can purchase those assets. Thus, anything go wrong with Bitcoin will surely affect the altcoins too.

Bitcoin is a great coin for invest. That’s why every person wants to invest on this project. For this reason bitcoins price and demand both are rise. In this situation other coins price decrease because of low demand.

Bitcoin has the effect on the altcoins. If you look at the market movement, you will see that when btc fall other cryptos also fall accordingly. Even the graphs are almost same.

The supremacy of the bitcoin affect enormously to the altcoins. As the bitcoin has become the most popular coin so people day by day are investing more on it and forgetting about the other coins.

unfortunately bitcointalk does not have the option to give you an alert or something whenever one of your comments is quoted so usually people miss it unless they manually go back to the topics and check the replies to see it for themselves. which I happened to do right now. ::)

Even though some of the altcoins have no good use, they are still being to store in the wallets and later used when the market is in a dip, people switch to bitcoins. this is just a vicious cycle and that’s how things have been going unexplained in the market.

that is not called "use", it is called speculation. and although you can call trading for short term  aka pump and dump some sort of usage but it really isn't in the real world.
what happens is that people only get involved with altcoins because they want to make profit, and when they see pumps they get more excited to join because there is a bigger profit to be made.

Definitely, bitcoin and altcoins are correlated with each other. Any movement either be it uptrend or down trend mode of btc, usually altcoins will follow and that is just the way it is. Usually, people investing from ICO after selling, this will be then exchange to the bitcoin currency and have it stayed to this currency for good while waiting btc to increase.

This was a very interesting post. The price of altcoins are usually related to the price of Bitcoin. So, when the price of Bitcoin falls, the price of other altcoins fall as well.

Almost anyone who is involved in cryptocurrency is just always working to get more and more bitcoin, because they know that it is relevant and they know that it will never die because it has many people behind it unlike altcoins which are made only for making quick and small profit and they are risky to invest in because they could go down at any moment, and that is why you see anyone who has any investment in altcoin always exchanging them to bitcoin because when the market goes down it is safer for people to put their money on bitcoin which they can always trust to go back rather than letting them sit on a altcoin that might stay down or perish.

Yes, eventually the altcoins price are depends on the price of BTC. BTC market price plays a vital role in the altcoins price and it is happening from the very beginning.

The thing is that alll of the altcoins have trading pairs with bitcoin which means that whatever happens to bitcoin affects the prices of the altcoins that they are paid with. If people are not investing in bitcoin then that means that they are not trading in these altcoins that they are paired with so it affects the prices of the altcoins

Being the first and pioneer coin in cryptocurrency i guess its normal that bitcoin will hold the legacy maker and the highest worthy coins in all of this,the value is depend on how many are using this coin because its a law of supply and demand,why should i buy other coins that i wont be needing in future.while bitcoin is the currency for the future,as simple as that dude

being first obviously helps but it is not enough. you can only stay ahead if you are good. bitcoin is good and that is why it is staying way ahead of the rest. and also since the rest are mostly shit, they don't have a tiniest chance in this race.

imagine a fat man entering a running tournament. even if he starts with a 10 minute jump start compared to others, he still doesn't have a chance. he won't even be able to finish the race. but if it is an athlete with that 10 minute start then he will not only win the race but also will put a huge distance between him and the rest of the competitors.
in bitcoin the competitors are all that fat man and they all have broken legs :D

My opinion to this thread is that bitcoin is the first ever crypto currency and being the original crypto currency that takes the lead in the crypto market. Any market movement of bitcoin does have an impact to the alternative coins and this is the usual scenario of the market trend. I would say that btc and altcoins are basically correlated with other or directly proportional with each other.

I believe that since Bitcoin and entire crypto industry is still in the basic phase of development, we have a long way to go who expect sustainability in the market. As of now, these currencies are interrelated in terms of volatility that means if the price of Bitcoin falls people tends to adjust their entire portfolio resulting in a volatility in altcoins too. This is my observation of the entire crypto market so far.

Bitcoin affects a lot of coin market, bitcoin prices and rising demand. In this situation, other currency prices fall due to low demand.

As leader on cryptocurrency market, bitcoin give confident for investor. If bitcoin price always rising and give good return, investor must be believe on altcoin can give big profits too

I am also confused like you. Why? Everytime bitcoin drop its value all altcoins follows. Maybe bitcoin is the barometer of the prices of altcoins.

Bitcoin has a great affect on Bitcoin. It is responsible for lifting Altcoins, suppressing or depressing them. This is mainly because most of the Altcoins are traded for Bitcoin, meaning that you can sell and buy the Altcoins in terms of Bitcoin. Therefore the value of Altcoins tends to follow the prices of Bitcoin. This is in fact the main reason that Bitcoin affects the prices of Altcoins.

i will quote that sentence in 10 years :D
It will not happen, expecially if you talk about token too.

Anyway, just think at litecoin: imho is useless, but somehow it has a value for the past 5 years. And it will have a value for the next 10 years.

It does definately make them follow Bitcoins price movements. For a lot of altcoins BTC is still the only trading pair on many exchanges. Until this won't change, Bitcoin will rule over altcoins.

Bitcoin is the first cryptocurrency ever created, if the bitcoin destroy also altcoins destroy because the two connected to each other and altcoins inspired by bitcoin, and bitcoin is the biggest coin marketcap anf bitcoin can affect the overall price of the Altcoin.

Yes bitcoin has the supremacy over other altcoins as they have not gained the trust of investors.Also altcoins have not proved their potential but bitcoin has survived despite strong and continuousattacks by some governments.