If BTC Dominance will drop to 40%, what will happen?

[kelz1]

When bitcoin becomes too dominant the altcoin market falls which is bad overall as good alts like ethereum, eos, will also crash. 50% is just about right, if it gets lower then it's use as digital gold might waiver

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[Kasabus]

When bitcoin becomes too dominant the altcoin market falls which is bad overall as good alts like ethereum, eos, will also crash. 50% is just about right, if it gets lower then it's use as digital gold might waiver

Bitcoin is already dominant and even without looking at the figure, we will feel that there's always significant effect on altcoins when bitcoin moves.
The market data alone is not a good basis, you have to look in different factors to analyze the market pretty well.

[Beerwizzard]

Some altcoins have a huge supply and at the same time low trading volume which is giving us an impressive market cap that will be useless and should decrease very fast if some small part of holders sells their shitcoins. In case with BTC we have more mature market and and a good quality coin. To compete with it altcoins have to become less speculative and have at least some usage for its users.

With that, it makes BTC total dominance rate undervalued.
It should be higher than the current rate now, maybe around 80% if we exclude the high supply shitcoins now that has no volume.

But let me check if it's really true, currently sorting now the list in coinmarketcap and it shows.




Looks like not all high supply coins has a good marketcap and therefore shitcoins might not affect the accurate of the entire marketcap.

CMC is excluding some honestly dead shitcoins. It is pretty obvious that if shitcoin have 0.5$ of daily volume then with a billion supply it still won't make its market cap.
But the problem is that MC of other altcoins is still overvalued and global crypto MC is pretty rough.

[ahmadinejad93]

of course the bad effects are very clear now, so that all investors see prices now becoming frustrating. because they have suffered huge losses at this time. But with all this, we must be optimistic that the future of Bitcoin will be better. actually bitcoin and altcoin whose prices have started to rise a few percent this month.

[BitBustah]

40% is still a large share of the market and still shows how dominant bitcoin is.  Altcoins tend to pump a lot harder during bull runs so don't be surprised if bitcoin slowly loses marketshare during this next bullrun.  During the bear bitcoin tends to gain dominance as more people convert to btc for safe holding.

[arpon11]

I noticed that if BTC has a big dominant rate the entire crypto is bad, in short it looks bullish.
Though the rate now is very consistent to 50% and above, what do you think will happen to the market if it will drop that low.

Will this gives a bad or good effect to BTC and Altcoins?

If bitcoin dominance reduce?  I think it will definitely going to favour the altcoins market.  We can see how bad it is for some of the coins that has better technology than bitcoin but they could not make any significant progress outside bitcoin and that means bitcoin problems automatically become there problems and that makes it very difficult for them to grow.  If bitcoin reduce in dominance on cryptocurrencies market other strong coins like ethereum and ripple will become competitive and that makes some of them become profitable in investing.

[Ozero]

The fall of Bitcoin capitalization is inevitable in the future, as over time more and more new coins and tokens with much better functionality will appear. If Bitcoin capitalization drops to forty percent, then most likely nothing significant will happen. But if it continues to decline further, then after a certain time Bitcoin will lose its price dominance over other types of cryptocurrency.

[Kasabus]

The fall of Bitcoin capitalization is inevitable in the future, as over time more and more new coins and tokens with much better functionality will appear. If Bitcoin capitalization drops to forty percent, then most likely nothing significant will happen. But if it continues to decline further, then after a certain time Bitcoin will lose its price dominance over other types of cryptocurrency.

If within the current range nothing will happen, but if the market will turn into billions or trillion marketcap and bitcoin has a big share of that market, it's still good for BTC investors as it still brings profit.

BTC dominance will not continue to hold it's range now, it will drop for sure, there will be more project that has a good potential that could possibly boom in the future and people might cut some of their investments in BTC for that project, but the moment the market will again be bearish, they will go back with BTC as it's more stronger than alts, well, that if the trend now will still continue in the future.

[Carollzinha]

In theory both...
Since after droping price starts going down (less coin in the market) that means everything else will become even shorter in terms of having btc to exchange for any other crypto.
Same happens (vice versed) when price rises.

But probabily markets start loosing their own values (exchangers and Casinos).

[leonair]

Ever since Bitcoin has its dominant market cap of more than 50% to the 2nd placer and for a long time it holds still among all of the altcoins combine. I think it's good for the crypto world itself that Bitcoin is ahead to other altcoins as it's the father of cryptocurrency.

When you look at the price chart of Bitcoin and Ethereum back in January 15, 2018 Ethereum had $130+ billion market capitalization while Bitcoin had $224 billion so at this point Bitcoin only holds a 41.96% dominance from  Etherum but as of today Bitcoin has more than 500% dominance.

[pawanjain]

I really don't think that anything will be changing because it's just the ratio in proportion to the altcoins. The money would still be in the crypto market.
It's just that there would be less number of people holding BTC and more number of people holding altcoins.
But even if the dominance drops to 40% it's still a good deal because there are thousands of coins/tokens and all of them combined competes with the dominance of BTC.

[Indamuck]

There was a point when ethereum was very close to bitcoin's marketcap and it may happen again in the future.  Many experts think this flip will happen as Eth gains even more adoption.  You can't go wrong with either, and its clear that btc/eth are the two most accepted cryptos for payments.

[kyucryp]

 happens. all altcoins will have a big impact. price decline cannot be avoided. everyone thinks if crypto is bitcoin and all eyes are on bitcoin bricks. so altcoin will rely heavily on bitcoin as the most dominant crypto currency in the world. we must be able to socialize altcoins, so altcoin can dominate the market.
 

[KingScorpio]

I noticed that if BTC has a big dominant rate the entire crypto is bad, in short it looks bullish.
Though the rate now is very consistent to 50% and above, what do you think will happen to the market if it will drop that low.

Will this gives a bad or good effect to BTC and Altcoins?

why should the bitcoin founder's centrally controlled and owned cryptocurrency index ever, ever, ever recognize altcoins that are close to the top 10 or even top 200?

it would economically not benefit them, and their whales, and their miners.

this index is a big fat first mover scam. that is highly corrupt, whats with facebook coin, whats with JP Morgan coin, whats with the 500 million coins of japanese Bank startups, its unending.

crypto might very well crash soon due to these problems.

so since the reconition runs according to a corrupt network, it wont happen. bitcoin will be upkept as nr.1 cryptocurrency. except two cases happen:

a government is being enforced with violence over all or parts of the population

or

people stop taking serious the current cryptocurrency indexes.

[Slow death]

I noticed that if BTC has a big dominant rate the entire crypto is bad...

The creators of altcoins should create altcoins that are of high quality and should not be in the shadow of bitcoin. Altcoins should be useful in real life, altcoins should be used in real life. so they will no longer be in the shadow of bitcoin and will be recognized. What happens now are is the we have many copy/paste and modified projects in some aspects and with this we have more than 2000 Altcoins without any purpose

[nauane]

When bitcoin becomes too dominant the altcoin market falls which is bad overall as good alts like ethereum, eos, will also crash. 50% is just about right, if it gets lower then it's use as digital gold might waiver

I also think that too high BTC dominance or too low BTC dominance, both are not good for the crypto currency. Bitcoin dominance should remain between 45% to 55% as this is ideal percentage for the market to grow.

[Pattart]

When bitcoin becomes too dominant the altcoin market falls which is bad overall as good alts like ethereum, eos, will also crash. 50% is just about right, if it gets lower then it's use as digital gold might waiver

Bitcoin is already dominant and even without looking at the figure, we will feel that there's always significant effect on altcoins when bitcoin moves.
The market data alone is not a good basis, you have to look in different factors to analyze the market pretty well.

That means if the dominance of bitcoin decreases in the market, lets say, the dominance of bitcoin is only about 40% of the total marketcap in the market. then effect of bitcoin is certainly not as big as before right? Bitcoin price movements may not affect the price of an altcoin market too much..

[magneto]

I noticed that if BTC has a big dominant rate the entire crypto is bad, in short it looks bullish.
Though the rate now is very consistent to 50% and above, what do you think will happen to the market if it will drop that low.

Will this gives a bad or good effect to BTC and Altcoins?

Bitcoin dominance has no effect on the runnings of the actual network. You have to realise that.

Bitcoin dominance is simply the market share of bitcoin relative to all the other cryptocurrencies in the market. Prices are independent of the code underlying the system. If bitcoin dominance drops, all that means is that the markets now tend to favour other cryptos relative to bitcoin.

Usually, this happens in a bull market because when people have FOMO, they tend to move their funds out of BTC and into other coins where the hype is. There is no real "beneficiary" from the drop unless the entire market is growing, though you could argue that traders can take advantage of the drop by speculating on the index rebounding.

[juragane]

If we're talking about fundamentals, then nothing. If were talking about the markets, it just means that people are allocating more of their BTC to other coins/tokens. If I remember correctly, bitcoin having lower market dominance(based on the marketcap statistic) occurs mostly in bull markets. For the answer though, I think it's pretty much neither good or bad.

do we not consider that the price of the decline is an ugliness, we can see if the price moves down then there will be large-scale purchases from traders. this indicates that there is a scenario of trade that is happening, so this is not a bad thing.

[Carollzinha]

If we're talking about fundamentals, then nothing. If were talking about the markets, it just means that people are allocating more of their BTC to other coins/tokens. If I remember correctly, bitcoin having lower market dominance(based on the marketcap statistic) occurs mostly in bull markets. For the answer though, I think it's pretty much neither good or bad.

do we not consider that the price of the decline is an ugliness, we can see if the price moves down then there will be large-scale purchases from traders. this indicates that there is a scenario of trade that is happening, so this is not a bad thing.

It might sound so easy to predict or even state something like that. In reality what might be happening as my article said is something like a pump and dump.
If most investors believe a pump is necessary they will start one and eventuall price rise where ourselves will think it's something normal happening in the network.