Bitcoin Dominance and Bitcoin Meme

[NeuroticR]

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

[BrewMaster]

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



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!

[o_e_l_e_o]

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.

[mk4]

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.

[pooya87]

~
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,...)

[o_e_l_e_o]

-snip-

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.

[mohammedmattar]

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.

[electronicash]

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.

[th3nolo]

-

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

[XinXan]

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.

[pooya87]

-snip-

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.

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.

[o_e_l_e_o]

if you insist on using market capitalization for altcoins then we should at least use real circulating supply instead.

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.

[teilwalL05]

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.

[kamBlanV]

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.

[team87]

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.

[franky1]

[coinhunt]

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.

[NeuroticR]

Yes. We stand together.

[NeuroticR]

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.

[crzy]

Yes. We stand together.

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!