do not be afraid of the alts-rally

[iamTom123]

I would agree with most of your post here. Indeed, what we are seeing here can be a little bit of an abnormality since in the past when Bitcoin is on the upswing most altcoins would bleed but this time they go together singing in the rain oblivious of the many problems and challenges which the cryptomarket is into.

Actually this is good news for many cryptocurrency enthusiasts as we have now many avenues to "invest" money with and make some profits. This is indeed helping Bitcoin because Bitcoin is becoming the gateway for this altcoins and when the going gets tough they normally return to Bitcoin like a give-and-take relationship. I would call this as a symbiosis connection.

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[Shishir99]

a few thoughts concerning the big gains that lots of alts are showing:

-don´t begrudge alt investors for big gains. let them have their 5 minutes. bitcoin started its uptrend 18 months ago at $ 200-300 and has reached $ 1600 on bitstamp a few days ago. it has 5 folded or even 8 folded, depending where you start to count. in my opinion it will rise further, the end of the uptrend is not near. bitcoin went up 30% in the last 30 days.

-since alts are rallying at the same time bitcoin shows new ATHs it is clear that the money going into alts is not bleeding out of bitcoin. it is new money getting in. every dollar that gets invested in cryptos is good. lots of alts get traded via bitcoin and lots of alt investors will realize sooner or later that bitcoin is the name of the game.

-when alts have reached their peak and tank, part of that money invested in alts will flood into bitcoin. lots of investors will lose their gains and get burned but some of them will try to learn and switch to bitcoin. imho the positive effect for bitcoin will outweigh the negative ones.



disclaimer: invested in btc only

I also think so.Most of the people are putting money in altcoin for gaining quick money.Though few of the altcoins have a good future potential i think.

[adaseb]

I almost never short any coins but I just had to open a short on XRP.

Basically went from $4 Billion to $8 Billion market cap overnight.

For every 1BTC in my balance, i've shorted 0.25BTC, I would only get margin called if it went to 50K Sats. Which is highly highly unlikely since that would mean Ripple has a higher marketcap of BTC.

Long term ETH is the only alt that I see surviving...

[TravelMug]

I'm not afraid of Alt either. For me, there as still a pump and dump coins. All the pump is just temporary and be burst soon. Investors are just putting money in alt coins and if they think they are gaining already, sell and dump take the profit then pump another alt coin, Rinse and Repeat the process. While bitcoin is much more different, investors has full confidence and trust into bitcoin ecosystem. The continuing price rise is the basis how people are really trusting bitcoin.

[Noctis Connor]

Im not afraid of altcoin this is the only way where i can earn bitcoins in a week maybe let say im going to buy some alt and then stock them to exchange site waiting for the time to be pumped the coin and then sell them patient is our partner here if you can't wait then you could probably lose all your coins .

[severaldetails]

Well it's not like altcoins would be accepted anywhere else than at exchanges.
All you can do with them is trade them.
But at the point where you want to put them for good use and buy something, you have to convert them either into fiat, or bitcoin.
And that's the point why I think the alt ralley helps bitcoin too.
A good part of the alts will end up to be bitcoin sooner or later.

[CyberKuro]

Well it's not like altcoins would be accepted anywhere else than at exchanges.
All you can do with them is trade them.
But at the point where you want to put them for good use and buy something, you have to convert them either into fiat, or bitcoin.
And that's the point why I think the alt ralley helps bitcoin too.
A good part of the alts will end up to be bitcoin sooner or later.

Some altcoins seems has potential I guess, as right now we have a coin which has reach $200.
We know that people will always sell their alts for bitcoin or fiat money, but is that true? Not everyone agreed.
Well, bitcoin isn't perfect in crypto world, so altcoins were here to fullfil what people want, even though mostly case we see it as trading object to earn more bitcoin.

[600watt]

Well it's not like altcoins would be accepted anywhere else than at exchanges.
All you can do with them is trade them.
But at the point where you want to put them for good use and buy something, you have to convert them either into fiat, or bitcoin.
And that's the point why I think the alt ralley helps bitcoin too.
A good part of the alts will end up to be bitcoin sooner or later.

good point. jimmy song has written a nice blog post concerning this:

https://medium.com/@jimmysong/why-the-bitcoin-dominance-index-is-deceiving-80ae324ee2ac

Thought Experiment

If that last section was too confusing, consider this thought experiment. Suppose I make a new coin tomorrow called FoolCoin. I premine the whole thing (100,000,000 coins) and only make 10 coins available. Perhaps I create a marketing campaign and even get enough people to desire the coin that Poloniex lists it. I sell just 1 of the coins for $10. FoolCoin now has a $1 Billion market cap. The next coin, I sell for $11 and now FoolCoin has a $1.1 Billion market cap. If there’s enough demand, I eventually end up selling the other 8 coins for $20 each at which point, FoolCoin now has a $2 Billion market cap.

I’ve just added $2 Billion dollars to the cryptocurrency market cap and have reduced Bitcoin dominance by a few percentage points. But did I really take anything out of bitcoin other than perhaps a few hundred dollars worth?