Bitcoin Forum

Back in 2013, Bitcoin used to dominate over 95% of the crypto market capitalization. Bitcoin dominance has been prominent, quite stable and over 80% until mid 2017. Then things were changed and an Altcoin season took over. In the last couple of years, Bitcoin market share went down below 40% for three consecutive times, although it managed to get back up to over 50% again each time. Next couple of years will be very interesting and the trend will tell us whether Altcoins are NPC or not!

However, I have created this post to publicly discuss more on this topic and also to share interesting/funny/creative meme on Bitcoin. Everyone is welcome to participate in this discussion and meme sharing.

#Bitcoin #meme

https://i.imgur.com/FRGq8ra.jpg
https://i.imgur.com/SSossZL.jpg

since you love memes so much i made you one from scratch to describe what you call "dominance" really looks like:

https://i.imgur.com/kfAZJ66.jpg

back in 2010 we had bitcoin and we had other altcoins which were trying to DO something and we had occasional shitcoin here and there. what you call "dominance" was the market cap which was 95%.
in 2018 we have bitcoin which has grown a lot but we also have a lot of shitcoins, most of which are a big pile of shit only because they have a huge supply which makes their market cap big. this also decreases the market cap share of bitcoin making the percentage (which you refer to as dominance) smaller. they also are hiding (burying) any good altcoin that may exist under their pump and dump crap!

Bitcoin dominance is a meaningless statistic because it is based on marketcap, which is an equally meaningless statistic.

Create an ERC-20 token with a supply of 1 billion tokens. You can do this in under an hour. Sell a single token to a friend/idiot for 10 dollars. Congratulations, your market cap is now 10 billion dollars, you own around 5% of the entire cryptocurrency marketcap, and you have reduced bitcoin's dominance by about 2.5%.

This is an extreme example, but you can see what will happen if you take less extreme numbers but repeat the process 2000+ times, which is exactly what has happened over the last few years. Almost every altcoin is worthless trash - their quoted marketcap value means nothing, and so their reduction of "bitcoin dominance" by flooding the market with trash equally means nothing.

While I agree with you, I wouldn't call it meaningless though. I think people just take the marketcap statistic a lot less seriously, as it's definitely quite inaccurate. I think it's a decent statistic to use when ranking probably only the top 20 coins/tokens when determining which coins/tokens are more "valuable" in terms of market value.

but it IS meaningless. specially when you are talking about value of a cryptocurrency and want to use it for ranking. value of a coin should not be determined by how much supply it has, no matter how high or low it is in some arbitrary ranking. what you should use is their utilities and a lot of other factors such as decentralization, number of nodes, number of transactions, number of merchants,...

and while we are at it we shouldn't even rank coins that are not even similar. we should categorize them and then rank them. for example centralized coins should not be in the same ranking as decentralized coins. or tokens (like ETH, Waves,...) should not be in the same category as currencies (bitcoin, litecoin, IOTA,...)

I agree with you in principle, but the issue is that you can't easily put a number on characteristics such as "decentralization" and "utility". Marketcap is used because it is easy to calculate and easy to understand, Even although it is next to meaningless for the reasons I have outlined above.

Perhaps we could also make a category called "obvious shitcoins" and move all the coins like BCH, EOS, USDT, TRX, BTG, XVG, and a thousand other alts to that category. Would certainly help to de-clutter the frontpage of coinmarketcap.

I expect as the volume of money increases in the market
Bitcoin's dominance will decrease in favor of Altcoin
I am aware that this is a healthy market for attractive investors


meme Expressing the situation.

right now crypto are not categorized so if we should we might want to try to categorize like store value, platforms, utility and store value and maybe security and then rank them in a manner. that might be a whole lot of browsing to do so we can't just go to CMC and check the 100 of them in one page. investors however just want to see it in two category, shitcoins and bitcoin.

It's a meaningless measure for most of the coins, I don't know why so many people care about this instead of looking to Metcalfe’s Law, NTV, Unique addresses, Transaction value, Mining cost... etc.

If any of you are interested in what I have said before, there's a masterpiece post of introduction in Medium (https://medium.com/@jake_ryan/cryptoasset-fundamental-analysis-7-indicators-ratios-to-watch-470c56076c2e)

As long as btc holds most of the fiat pairs, bitcoin will be the king. It's going to take a looong time for the other alt coins to get their fiat pairs. Sure Ethereum and the top 5-10 usually have but other than that, not too many. As long as people have to buy bitcoin to exchange it for other coins/tokens, bitcoin will still be dominant, that's really why Bitcoin moves the market. Of course when a new user/investor wants to buy a coin, he/she will probably buy bitcoin first and not ETH or LTC, etc.

the main problem is that we are using a characteristic that doesn't belong here! for a company it is meaningful because you use the number of shares which is completely real and reasonable and also in circulation. but for an altcoin we use its supply which is meaningless, fake and unreasonable and also most of the times not even in circulation.
if you insist on using market capitalization for altcoins then we should at least use real circulating supply instead. for that we can do things such as excluding premined coins. for example ETH market cap would drops 70% because of its premine.

That would certainly be an improvement. Some of the other suggestions in this thread such as Metcalfe's law or unique addresses, while nice ideas, don't really work, as addresses != users. It would be very easy to simply set up a bot to create thousands of new wallets and addresses for my shitcoin and artificially pump its rankings. Similarly, I could just send millions of tokens back and forth between my own addresses to artificially pump its transaction value.

The most useful metric is real world use, but you can't put a number on that.

I really don't think that there would be an Altcoin season and in the meme's that you had provided that think I am seeing that Altcoins are very hopeful for bitcoin's recovery because if the price would not return and have a pump the value of other Altcoins will be still the same of might as well fell down when the price of bitcoin also went down, they are very dependent to bitcoin and Altcoins need to support bitcoin so that their value could be carried by bitcoin up.

even though we experience a long red market, but the value of bitcoin this year is better than before, so, in my opinion, this is a good development. I do not sad with market condition today.

it is volatility, sometimes bitcoin always rises unlimited, and sometimes falls drastically, and sometimes it is stable.

Maybe so far I have misinterpreted that altcoin is dependent on bitcoin? ??? In general, is my presumption possible? Please correct.
 Thank you to all seniors.

Thoughts about Bitcoin dominance are likely to fade away. Altcoins and tokens designed for different purposes. They do not function like money or stores of value and are not intended, in most cases, to replace Bitcoin. Bitcoin will remain popular but it won't dominate forever.

Yes. We stand together.
https://pbs.twimg.com/media/Dxm3T82WkAEBfjI.jpg:large

BTC is not far from reaching the max, less than 3.5 million BTC can ever be generated over the current supply.

But the demand will rise.

The more whales keep selling Bitcoin, the better it gets for an ideal spread. I expect to see a gradual rise phase, which should not be far.

https://pbs.twimg.com/media/DyqWDzSW0AAGf7B.jpg:large

No matter how big the bear are, as long as we support bitcoin we will never be beaten by anyone. The bull will run fast to help the market survive, and its good to witness such uptrend before that will always happen in the future, bitcoin is the top choice!

Don't forget that we're also near to the next halving by 2020. There will be a gradual rise and I expect that it won't be same like what we've seen last 2017 but what matters most is that it will rise.

It may happen for the end of this year or after the 2020 halving.

And I think I have to share what I've seen lately.
https://scontent.fmnl6-1.fna.fbcdn.net/v/t1.0-9/51718051_643203056135384_8222702239513313280_n.jpg?_nc_cat=103&_nc_ht=scontent.fmnl6-1.fna&oh=db386a13916d976ad5ddab120d15a948&oe=5CB7FBE8
Source: https://www.facebook.com/CryptoCrunchApp/

 ;D  ;D nice one!

Yeah, I think we can see a gradual rise before the halving, because people will be looking for an early entry point.

I think it's much better if we go back below 40%, the higher the dominace of BTC the more the entire market looks gloomy.
I'm actually missing the season where altcoins has a say in the market, now even good altcoins looks like a shitty coin because BTC
can anytime strike them down if it has a significant movement.

since market capitalization is a meaningless characteristic, it doesn't matter if it is 99.999% or if it goes down to 40% or even 0.0001%
in the end that percentage which newbies falsely call  "dominance" is not actually dominance. it only shows there is an inflation going in the altcoin world since it is super easy to create market cap with a click!!!

the altcoins don't look shitty be cause of bitcoin, they look shitty because they ARE shitty.

No one should rate a currency based in its marker cap or percentage it shares in the general pool, ans bitcoin does not drag down all altcoins with it.
Market capitalization are just figures that can be easily blown up by few trades for new currencies.

I totally agree with Brewmaster. Dominance statistics that came from coinmarketcap is fake. It's full of crappy coins with billions and billions of supplies. We can't deny that no matter what the statistics say, Bitcoin is still dominant in all aspect as altcoins still rely on it.

I agree with Both of Meme. But here we have to understand how things are takings places accordingly. Bitcoin was higher dominance at the initial stage, but as many new tech persons find issues with Bitcoin so they went with another coin offering more better experience while transacting. And her the game begins.

We are seeing BTC have nearly 52 to 55% dominance in the whole crypto market but while taking these figure about cryptomarket we also have to keep watch on marketcap of cryptocurrencies.

the whole point is that you should not look at market cap of cryptocurrencies because it not only means nothing but also it is meaningless when one is higher than another.

for example you can create a new coin by copying the code of some other coin, from bitcoin to any other one. then change their supply to 100 trillion. then after releasing it, you sell 0.01 of your coin on an exchange for $1. now your market cap is 10000 trillion dollars.
do you see how fake it is?

Yes. Exactly. I think beyond this as its still in testing phase, yet this technology has the maximum possibility to change all economy and financial structure which is completely different from traditional ways.

But is all in just in experiment mode what about actual statistics of debt of the world. It never can be calculated if cryptocurrencies introduced as per my acknowledgment. Still, it will be a more transparent and secure thing that can be used for making trades for the upcoming future of business.

The meme is hilarious but true. Bitcoin holders will not be broken apart and our trust is never been lessen even the value is down. The big bear really represent how hard to deal with them. Even altcoin season is up today, bitcoin's popularity never lessen and i guess people are likely to have bitcoin as an investment after all.

We all know that everything start from bitcoin so the enthusiast must be concentrate from it.
I won't be surprise at all when by time, the trend continue to downtrending when there is getting no demand on it

So should we surrender ? As long as you believe, just keep hold it !

hehe i really love the selfmade shit meme  ;D ;D
For me all altcoins are unless since Bitcoin brings all what we need like this reasons :
- Exclusion of third parties
- Money(COINS) without debt money creation
- People without a bank account can participate in the monetary system
- Worldwide transactions ( with speed ) and lightning network
- Protection against excessive money creation (21 million BTC)
- Bitcoin brings a discourse about the monetary system with it

so no need for alts....


regards

I completely agree with you except the idea that we don't need alts at all. I believe that we also need alts as much as we need Bitcoin. Because to have a kingdom where Bitcoin is the king, it needs soldiers to face the front-line in the battlefield where many of them (alts) die (sadly).
It's a meme-ish comment, lol, but makes sense, doesn't it?

Bitcoin needs competition and some support in this early stage to maximize overall crypto market capitalization, to increase transaction and fluidity. If you think about fiat that we use to buy all other products or do business with, you can also consider Bitcoin like a fiat of the crypto market where it is used to buy other products, which are Alts in this case. These Alts are in fact helping Bitcoin by not only making it a gold standard but also increasing its acceptance, trust and usage in the market, at least to some extent. However, this system and influence of Alts also have certain major negative impacts on crypto and Bitcoin.

In an ideal crypto world where most people use crypto in daily life like we use fiat now, other Alts are unnecessary, but we have not reached there yet.

This is funny but true. This is the reality almost 80% that they said or assume that they are bitcoiner but the truth is they are only categorized as a bitcoin meme that never know what are doing. Like in accident they are only perform hit and run. When they earn and got the return of investment they will leave the industry.

Really sad to know he reality but that's it, we are mostly a meme. :D
I don't know if those people realize of what they doing and to know exactly that they are in the wrong path. They are wise and they'll never want to loss that causes them to leave when they gain money in crypto. They are the so-called selfish individuals, they are only having concerns with their self but not looking for what possibly be happen with the market.

Good addition
But may be difficult to do
CMC provides simplified statistics based on one factor only, which is the number of the marketcap for each currency
The factors you mentioned are more accurate but they need to be effortlessly put into the equation.

I think this is the best comparison and a true picture of Bitcoin's dominance over the altcoins over the years, over the years Bitcoin just gets better and better and about altcoins, they just come and go and never to return, these are ICO's based coin.

We will have a new ATH then this year.
Well, I don't underestimate the possibility of it happening because when bitcoin reached to $20,000, no one expect it would be that fast.
The history of bitcoin based on trend says, it's possible to achieve a good price even at a short period.

its already given that everyone is concentrating on bitcoin but why you are saying that there is a possibility of the trend to go down  ? and whats worst is that that demand for bitcoin will become zero ? how come when bitcoin is too useful ? no person on this earth will resist to use and forgot bitcoin  .  they can only forget other cryptos but bitcoin  ?  nah i dont think so   .    bitcoin is still dominating on the current year ( 2019 )  and the meme's are also growing along with it  but that's not bad    .   meme's can help bitcoin to become more dominant   .

We see that the downward trend in the bitcoin capitalization level continues. Therefore, interesting events await us ahead. It is possible that this may result in Bitcoin losing its price dominance over other types of cryptocurrencies. This is also indicated by the fact that even now many altcoins surpass bitcoin in many of their functional indicators. What will happen after that - a cryptocurrency market free from price domination or something else, it seems, we will soon see.

At first I wanted to rebel, but then I realized that you were right. Bravo.

I doubt that. It may lose much of it's dominance but btc will still be the dominant coin in the crypto market. I think it's just accetable that alts grew in capitalization since crypto itself gained and is gaining popularity in general. That means the focus isn't too much on bitcoin now since people are looking at the other uses of crypto.

In 2013, there was only few coins in crypto market. So bitcoin dominated more than 90% of the market capitalization but now more than 2200+ coins/ tokens are in the crypto market. Few big big coins like ETH, XRP, BNB, BCH are dominating nearly 25% of the market capitalization.  Now Bitcoin dominance is 50%+. This is clear that with the increase of new new coins, declined the dominance power of Bitcoin but still more than 50% dominance is really surprising.

To me market capitalization is meaningless because bitcoin still maintain it dominance despite the presence of all the altcoin and bitcoin still have the highest market cap until now and bitcoin control everything that go on in the cryptocurrency market today.

This was how ancient Egyptians would write the word 'brain' on papyrus. They had some brains.

Wait, did they have Bitcoin too?🤔

https://i.imgur.com/Z5Xj6ZY.jpg