Bitcoin is still hot but Bitcoin Dominance is dropping. What does it tell?

[Vishnu.Reang]

This is just a temporary phenomenon and IMO the Bitcoin dominance will be back to 60+ levels once the next round of institutional investment starts. Right now a lot of new users are investing their stimulus money in various altcoins such as Binance Coin and Cardano and that is causing an increase in their exchange rate, and thereby the market share. This phenomenon is not going to last for too long. At current levels, almost all of the altcoins are overpriced and it is not sustainable for an extended period of time.

[sapnu]

Maybe it is caused by the altcoins good performance these past few weeks. Many people might be converting their bitcoin to altcoin although the occurence of this won't be so long since we all know how good bitcoin is doing also. It won't be so long till bitcoin would get a new all time high once again so let us just stay patiently waiting for it and believe that even altcoin season is near or currently occuring, bitcoin would still be able to dominate the market just like how it did way back it reached a price that we never expected.

[pooya87]

It tells me that even after this many years there are still people who don't have the capacity to understand that market cap ratio has nothing to do with dominance and market cap of majority of altcoins is either mostly or completely fake. It is extremely easy to create billion dollar market capitalization out of thin air with zero cost, specially after introduction of tokens this became so much easier and cheaper. And that value represents a fake and abstract thing which can not even be called "capitalization" let alone be used in any comparison.

[Sithara007]

Whenever there is an influx of new users, the Bitcoin dominance goes down and proportionately the market share of altcoins rise. But this doesn't last too long and Bitcoin will recover most of the lost market share once these users move towards Bitcoin after getting disillusioned with the returns from the alts. Also, Bitcoin prices are stagnant for the last 4 weeks. Things will change when the next rally starts.

[nutildah]

The exact reason why Bitcoin dominance is dropping is because it is not growing as fast in market cap as all altcoins (tracked by CoinMarketCap) combined. Outpacing the totality of all other crypto seems to be a heavy responsibility to bear at this point.

I have two different takes for this, so let's do both, because why not:

It is extremely easy to create billion dollar market capitalization out of thin air with zero cost

Not in a way that would lead them to be included by CoinMarketCap. Let's drop everything but the top 100: how long before the sum of the market cap of those 99 other coins surpasses that of BTC? If you look at the general trend of things, not too long. And who cares? It is symbolic more than anything -- the rise of altcoins into their own (most of them won't make it ofc). If it is "extremely easy" to do this, you should go ahead and do it.

It is extremely easy to create billion dollar market capitalization out of thin air with zero cost

Well, that's how Bitcoin got started.

[bitterguy28]

Bitcoin is still our everyday issue around the world, not only it is an investment but it is also going into our daily life.

Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.

Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?

Because altcoin season is now in progress , we can check it in CMC that Bitcoin movement is slowing while Atlcoins is dominating.

https://coinmarketcap.com/

it looks like we are now seeing the Alt covering the market.

[pooya87]

Not in a way that would lead them to be included by CoinMarketCap. Let's drop everything but the top 100: how long before the sum of the market cap of those 99 other coins surpasses that of BTC? If you look at the general trend of things, not too long. And who cares? It is symbolic more than anything -- the rise of altcoins into their own (most of them won't make it ofc).

You'd be surprised.
But yeah, lets take "top" altcoins. ETH has a 72 million premine. Remove the coins that are not in circulation and were created out of thin air and you'll get a market cap that is closer to reality and equal to $92 billion instead of $246 billion. A lot of others are the same too, BNB, XRP, USDT,...
Or take shitforkcoins like BCH, majority of bitcoiners ignore it while it still says circulating supply of 18.7 million while the real circulating supply is far less since when they copied bitcoin the supply was already a little less than 18 million.

If it is "extremely easy" to do this, you should go ahead and do it.

Well, I don't like creating garbage or scamming people just to fill my own pocket so I'll never do it.
It is also a big waste of my time, the time that I spend doing more constructive work and build useful things.

It is extremely easy to create billion dollar market capitalization out of thin air with zero cost

Well, that's how Bitcoin got started.

Are you joking or didn't understand my comment?
When was bitcoin created out of thin air?

From block 1 when circulating supply was zero anyone could mine bitcoin and get the reward on an equal playing field without anyone having any advantage. To this day that is the same, anyone can mine bitcoin and get the reward. So every single satoshi from bitcoin's circulating supply hence its total value was earned though work.

In comparison a premined altcoin or a token creates a huge supply (eg. 72 million coins) literary out of thin air at the very start and the coins are owned by the creator of the coin and others can not get those coins unless they pay real money to purchase them.

How can you even think these two are the same?!!