Cryptocurrency Market [centralization]

[hugeblack]

- On Friday, many virtual coins saw a violent sell-off with billions of dollars wiped off of the entire cryptocurrency market.[1]
- Experts have cited worries over tighter regulation and concern that a digital coin called tether could destabilize the cryptocurrency market.[2]

The last two days witnessed a harmonious movement of all currencies up and down "Almost all currencies have the same graph".
We have seen the same ups or downs for all currencies at the same time.

Do you think the market is going to be centralized? Or that Bitcoin has the greatest influence on this?
Do we really need all this number of currencies?

[1714898453]

1714898453

[1Referee]

Experts are not experts at all, but plain hype drivers. I don't get it why people constantly talk about Tether being a problem now, while it has been a potential problem for more than a year now. In other words, Tether right now isn't more of a potential threat than it was a good year ago. It's exactly the same, but the shitload of fud and drama makes it stand out to get this market shaken up. Ignore all this and just more forward. Bitcoin is the front driver leading altcoins to their all time high, so if Bitcoin moves up, it boosts the entire altcoin market in the long run. Even if altcoins don't increase in value as per their ratio against Bitcoin, the increased USD value of Bitcoin will make all altcoins gain USD value as well.

Regarding whether or not we really need that many coins, the answer is no. However, since this is a free market where everyone can basically buy or fork a coin, we'll see them pop up like mushrooms after a rainy day for plenty of more years. The overall greed of this market makes sure there is a constant level of demand for these coins, so there will be a constant level of supply as well.

[CHENIEN]

I know we have different ideas about cryptocurrency market status, but for me, the real reason on what happening today in different cryptocurrencies are only behind the control of the management, only we can say and share are speculative ideas and we cannot determine the exact future and situation of all cryptocurrencies.

[oddwh]

In fact most of the coins are indexed on BTC price, which means if BTC crashes, others alts will follow. So yeah, because of that, BTC incluences the whole market.

You can take as example Ethereum, which survived a bit longer on the crash, because ETH is more indexed in USD than others coin.

About USDT, I completely follow 1Referee, it's not more a problem now.
And I would say, who cares if USDT really own what they are supposed to have ? We all know banks haven't the whole USD they are supposed to have, so USDT would be a good replica  . People are afraid of USDT just only because the price drops, and not the opposite, that's because we always (as humans) need an understandable reason when something negative happens.

[jaysabi]

Yes, Bitcoin has the biggest impact on all altcoins prices because Bitcoin is the most liquid crypto and the starting point for many alts. Starting point in that if you want to buy XYZ coin, you have to first to buy Bitcoin and then convert your btc to XYZ. The total price of all coins listed coinmarketcap is derived by weighted average of all known market pairings, between fiat and any coin and all other coins and any coin, including Bitcoin, which by weighted average is always among the most heavily weighted pairings. So by definition, when Bitcoin moves up or down it carries almost all alts with it as a function of how the price is determined. The only time it doesn't is in instances where a particular pairing is heavier than Bitcoin/particular alt, and the trading is in the opposite direction of the current Bitcoin price move.

[LeGaulois]

I don't get it why people constantly talk about Tether being a problem now, while it has been a potential problem for more than a year now. In other words, Tether right now isn't more of a potential threat than it was a good year ago

Even one year ago I have not really understood how Tether could be a threat,  because I don't think so. But I agree with the rest of your comment.

- On Friday, many virtual coins saw a violent sell-off with billions of dollars wiped off of the entire cryptocurrency market.[1]

Isn't Friday the day when Bitcoin jumped from ~$8,000 to ~$9,500? If so then it's quite the opposite of what is mentionned.

-- Experts have cited worries over tighter regulation and concern that a digital coin called tether could destabilize the cryptocurrency market.[2]
 

Experts from CNBC.com? I didn't read the article fully but CNBC.com is one of the last media to listen to. I mean seriously.
As I said yesterday you can become homeless if you listen to them.

[jseverson]

In other words, Tether right now isn't more of a potential threat than it was a good year ago. It's exactly the same, but the shitload of fud and drama makes it stand out to get this market shaken up.

I would argue that it's much more of a threat now simply because of how much more there are in the market. Fake money is always a threat, but one billion fake USD circulating the market is much more of a problem than one million fake USD. If the nightmare scenario is true, then it has already done its damage at this point by inflating the entire market with non-existent money and it's just going to get worse as time goes on.

[squatz1]

Experts are not experts at all, but plain hype drivers. I don't get it why people constantly talk about Tether being a problem now, while it has been a potential problem for more than a year now. In other words, Tether right now isn't more of a potential threat than it was a good year ago. It's exactly the same, but the shitload of fud and drama makes it stand out to get this market shaken up. Ignore all this and just more forward. Bitcoin is the front driver leading altcoins to their all time high, so if Bitcoin moves up, it boosts the entire altcoin market in the long run. Even if altcoins don't increase in value as per their ratio against Bitcoin, the increased USD value of Bitcoin will make all altcoins gain USD value as well.

Regarding whether or not we really need that many coins, the answer is no. However, since this is a free market where everyone can basically buy or fork a coin, we'll see them pop up like mushrooms after a rainy day for plenty of more years. The overall greed of this market makes sure there is a constant level of demand for these coins, so there will be a constant level of supply as well.

Tether will never be an issue, Tether has some money in it yes -- but what is it a couple billion? That's nothing compared to the total market capitalization of all things Crypto, so yes it may affect a certain coin very heavily if that coin has a VERY large pair for Tether (and not with other coins and such) But Tether isn't going to be something that brings down the entire crypto market.

Bitcoin should pull up, but the market does what it does. No one knows what's going on, the market will do what it does.....

[frowsiter]

To be frank I believe that altcoins were bad move that were introduced in to crypto currencies. This is the reason why regulations needed to be stricten now a days. If there would have been only bitcoin then this much regulation might not have required in the first place. What we are seeing today is bad moves taken by the altcoins project only. They are making the scammers list very strong and making the economic conditions very unhealthy.

[1Referee]

I would argue that it's much more of a threat now simply because of how much more there are in the market.

It's nothing new, that's the whole point. The longer we allow Tether to grow, the larger it grows, and the more damage it delivers once it starts imploding, that's something everyone seeing Tether as a threat was aware of already. It's a logical happening after such event, and thus pretty easily to calculate its forward growing pattern. It's like a virus infecting this market slowly but surely.

Tether will never be an issue, Tether has some money in it yes -- but what is it a couple billion? That's nothing compared to the total market capitalization of all things Crypto, so yes it may affect a certain coin very heavily if that coin has a VERY large pair for Tether (and not with other coins and such) But Tether isn't going to be something that brings down the entire crypto market.

Bitcoin should pull up, but the market does what it does. No one knows what's going on, the market will do what it does.....

Tether never an issue? Hmmm. You don't know that Bitfinex is one of the largest exchanges and at the same time largest threat to this market? It's an insanely shady entity that for obvious reasons doesn't want to license itself, and that for years now. And let Bitfinex with their involvement in Tether itself also be Tether's major volume pusher.

Volumes of the top three Bitcoin exchanges in the last 24 hours.

1 - Bitfinex $720 million Tether volume against Bitcoin.
2 - OKex $720 million Tether volume against Bitcoin.
3 - Binance $330 million Tether volume against Bitcoin.

Volumes of the top three Ethereum exchanges in the last 24 hours.

1 - Bitfinex $290 million Tether volume against Bitcoin.
2 - OKex $255 million Tether volume against Bitcoin.
3 - GDAX $195 million actual USD volume against Bitcoin.

To add; market caps are meaningless. You just need to dump the price down of a leading exchange, which in current thin market can be achieved with a fair number of coins, and the market cap tanks with tens of billions in value, and that just because of a few million value dump.

[Tankdestroyer]

-- Experts have cited worries over tighter regulation and concern that a digital coin called tether could destabilize the cryptocurrency market.[2]
 

Experts from CNBC.com? I didn't read the article fully but CNBC.com is one of the last media to listen to. I mean seriously.
As I said yesterday you can become homeless if you listen to them.

Well said there since all they care about is their money, no more, no less. That's why anyone shouldn't listen to financial experts as they are just setting the hype.

It's nothing new, that's the whole point. The longer we allow Tether to grow, the larger it grows, and the more damage it delivers once it starts imploding, that's something everyone seeing Tether as a threat was aware of already. It's a logical happening after such event, and thus pretty easily to calculate its forward growing pattern. It's like a virus infecting this market slowly but surely.

So long as bitfinex have lots of volume and is running, tether would continue to grow. Nevertheless, Don't care about the damage it delivers once it starts imploding because there is nothing we can do about it besides not using it.

[owlman]

- On Friday, many virtual coins saw a violent sell-off with billions of dollars wiped off of the entire cryptocurrency market.[1]
- Experts have cited worries over tighter regulation and concern that a digital coin called tether could destabilize the cryptocurrency market.[2]

The last two days witnessed a harmonious movement of all currencies up and down "Almost all currencies have the same graph".
We have seen the same ups or downs for all currencies at the same time.

Do you think the market is going to be centralized? Or that Bitcoin has the greatest influence on this?
Do we really need all this number of currencies?

Your theme really makes you think seriously about the current situation in the market of crypto currency! But I would not want the market to be centralized.

[jaysabi]

[snip]

To add; market caps are meaningless. You just need to dump the price down of a leading exchange, which in current thin market can be achieved with a fair number of coins, and the market cap tanks with tens of billions in value, and that just because of a few million value dump.

But if it's an outlier, the market will recover quickly and it won't be an issue. The more liquid a market is and the higher the trading volume, the better an indicator market cap is. And we've reached the point now where Bitcoin market cap is a good indicator.

[Hell-raiser]

[snip]

To add; market caps are meaningless. You just need to dump the price down of a leading exchange, which in current thin market can be achieved with a fair number of coins, and the market cap tanks with tens of billions in value, and that just because of a few million value dump.

But if it's an outlier, the market will recover quickly and it won't be an issue. The more liquid a market is and the higher the trading volume, the better an indicator market cap is. And we've reached the point now where Bitcoin market cap is a good indicator.

I can't quite agree with this conclusion. There can be a really liquid market with active and agile orderbooks but if only a small amount of coins gets traded, no matter how fast, a market cap will be mostly a meaningless metric. It seems that trading volume itself is not a good indicator of how good an indicator a market cap can be. In this way, if we don't know how many bitcoins are being traded out of their total amount mined to date, we can't say if its market cap is a good indicator.

[melamiras]

- On Friday, many virtual coins saw a violent sell-off with billions of dollars wiped off of the entire cryptocurrency market.[1]
- Experts have cited worries over tighter regulation and concern that a digital coin called tether could destabilize the cryptocurrency market.[2]

The last two days witnessed a harmonious movement of all currencies up and down "Almost all currencies have the same graph".
We have seen the same ups or downs for all currencies at the same time.

Do you think the market is going to be centralized? Or that Bitcoin has the greatest influence on this?
Do we really need all this number of currencies?

This is unrelated to centralisation, it is related to most coins being paired up with bitcoin and many bots just trading without considering the fundamental value of the tokens and alts.

[melamiras]

I would argue that it's much more of a threat now simply because of how much more there are in the market.

It's nothing new, that's the whole point. The longer we allow Tether to grow, the larger it grows, and the more damage it delivers once it starts imploding, that's something everyone seeing Tether as a threat was aware of already. It's a logical happening after such event, and thus pretty easily to calculate its forward growing pattern. It's like a virus infecting this market slowly but surely.

Tether will never be an issue, Tether has some money in it yes -- but what is it a couple billion? That's nothing compared to the total market capitalization of all things Crypto, so yes it may affect a certain coin very heavily if that coin has a VERY large pair for Tether (and not with other coins and such) But Tether isn't going to be something that brings down the entire crypto market.

Bitcoin should pull up, but the market does what it does. No one knows what's going on, the market will do what it does.....

Tether never an issue? Hmmm. You don't know that Bitfinex is one of the largest exchanges and at the same time largest threat to this market? It's an insanely shady entity that for obvious reasons doesn't want to license itself, and that for years now. And let Bitfinex with their involvement in Tether itself also be Tether's major volume pusher.

Volumes of the top three Bitcoin exchanges in the last 24 hours.

1 - Bitfinex $720 million Tether volume against Bitcoin.
2 - OKex $720 million Tether volume against Bitcoin.
3 - Binance $330 million Tether volume against Bitcoin.

Volumes of the top three Ethereum exchanges in the last 24 hours.

1 - Bitfinex $290 million Tether volume against Bitcoin.
2 - OKex $255 million Tether volume against Bitcoin.
3 - GDAX $195 million actual USD volume against Bitcoin.

To add; market caps are meaningless. You just need to dump the price down of a leading exchange, which in current thin market can be achieved with a fair number of coins, and the market cap tanks with tens of billions in value, and that just because of a few million value dump.

Theter is not an issue. If it where not tether it would directly be USD. The trading is just money that wants to return to crypto without cashing on the dumps.

[jaysabi]

[snip]

To add; market caps are meaningless. You just need to dump the price down of a leading exchange, which in current thin market can be achieved with a fair number of coins, and the market cap tanks with tens of billions in value, and that just because of a few million value dump.

But if it's an outlier, the market will recover quickly and it won't be an issue. The more liquid a market is and the higher the trading volume, the better an indicator market cap is. And we've reached the point now where Bitcoin market cap is a good indicator.

I can't quite agree with this conclusion. There can be a really liquid market with active and agile orderbooks but if only a small amount of coins gets traded, no matter how fast, a market cap will be mostly a meaningless metric. It seems that trading volume itself is not a good indicator of how good an indicator a market cap can be. In this way, if we don't know how many bitcoins are being traded out of their total amount mined to date, we can't say if its market cap is a good indicator.

By definition, if there's a "really liquid market" as you put it, that presupposes a deep market. If it's a shallow market where only a small amount of coins get traded, by definition it is not a liquid market. You can disagree with the conclusion all you want, but you're contradicting your own point in doing so. You cannot have both a liquid market and a shallow trading depth. Those things are mutually exclusive by definition since one is an attribute of the other.

[Ultegra134]

- On Friday, many virtual coins saw a violent sell-off with billions of dollars wiped off of the entire cryptocurrency market.[1]
- Experts have cited worries over tighter regulation and concern that a digital coin called tether could destabilize the cryptocurrency market.[2]

The last two days witnessed a harmonious movement of all currencies up and down "Almost all currencies have the same graph".
We have seen the same ups or downs for all currencies at the same time.

Do you think the market is going to be centralized? Or that Bitcoin has the greatest influence on this?
Do we really need all this number of currencies?

I really doubt that the market is ever going to be centralized, that defeats the whole purpose of Cryptocurrencies, decentralization. However, indeed, Bitcoin has the biggest influence on the whole market, due to having a positive coefficient of correlation, that means, Bitcoin crashes, other coins crash too.

Moreover, most cryptocurrency "experts" are not experts at all, I doubt it that there are many who can be proclaimed as one, just trying to drive hype towards them.

[frowsiter]

I would argue that it's much more of a threat now simply because of how much more there are in the market.

It's nothing new, that's the whole point. The longer we allow Tether to grow, the larger it grows, and the more damage it delivers once it starts imploding, that's something everyone seeing Tether as a threat was aware of already. It's a logical happening after such event, and thus pretty easily to calculate its forward growing pattern. It's like a virus infecting this market slowly but surely.

Tether will never be an issue, Tether has some money in it yes -- but what is it a couple billion? That's nothing compared to the total market capitalization of all things Crypto, so yes it may affect a certain coin very heavily if that coin has a VERY large pair for Tether (and not with other coins and such) But Tether isn't going to be something that brings down the entire crypto market.

Bitcoin should pull up, but the market does what it does. No one knows what's going on, the market will do what it does.....

Tether never an issue? Hmmm. You don't know that Bitfinex is one of the largest exchanges and at the same time largest threat to this market? It's an insanely shady entity that for obvious reasons doesn't want to license itself, and that for years now. And let Bitfinex with their involvement in Tether itself also be Tether's major volume pusher.

Volumes of the top three Bitcoin exchanges in the last 24 hours.

1 - Bitfinex $720 million Tether volume against Bitcoin.
2 - OKex $720 million Tether volume against Bitcoin.
3 - Binance $330 million Tether volume against Bitcoin.

Volumes of the top three Ethereum exchanges in the last 24 hours.

1 - Bitfinex $290 million Tether volume against Bitcoin.
2 - OKex $255 million Tether volume against Bitcoin.
3 - GDAX $195 million actual USD volume against Bitcoin.

To add; market caps are meaningless. You just need to dump the price down of a leading exchange, which in current thin market can be achieved with a fair number of coins, and the market cap tanks with tens of billions in value, and that just because of a few million value dump.

The markets dropping again so do you think that we are again robbed with multi currencies and they all are down again? I don’t think that experts are really making proper suggestions here as the market is naturally fluctuating every other week and months. Experts are just trying to get popularity with their suggestions and they know very well that someday market will fall for sure and thus making them sound like right.

Regardless of their assumption I can bet on next market drop that might happen again. Then there will be up surge again and then again the market will drop. Oh come on that’s the natural cycle and it will continue like that. Doesn’t matter.

The centralisation would be the opposite world than crypto and we know how it works in our day to day life. Don’t bother much about it mixing with crypto currencies.

Note:- Edited

[Noelbetty12]

Somehow bitcoin may have an impact on the other coins and vice versa. Altcoins could create an impact on bitcoin given that they could also attract potential customer. But on some occasions anything that affect the other could also affect both. False information could lead to such situation. Just like when banning of bitcoins was affecting it, the same issue also affects the other coins and many feared that they might not be able to do transactions anymore with their altcoins. And results to panic selling and an unpredictable market for digital currencies.