Educational: Bitcoin is technically independent from Altcoins

[wagmi]

As for improving our knowledge about how to avoid a loss, we should always look at Fundamentals of Crypto.

What is Crypto?

Crypto is describing a large field of online-based digital currencies where cryptography is used as a technology for each coin.
It’s is often referred to as Crypto.

But in reality, Crypto is much more different, where each coins is different and based on own tech.

It is like FOOD, sure it’s a very large filed but if a food is not nutritious, it doesn’t mean all food else is not nutritious.
It’s very similar for CRYPTO. If an Altcoin fails, it doesn’t change Fundamentals of Bitcoin.




Important to know to prevent a loss

Bitcoin has crashed really hard recently but we also need to mention what's important:

Bitcoin wasn't responsible for what happened, Bitcoin was safe, working as usual and as usually proven since Bitcoin was started. It was caused by a single, very risky ALTCOIN, where fundamentals of were not proven sufficiently. It was a weak Altcoin causing a huge crash.
An Altcoin, where no link to Bitcoin's tech was around. Bitcoin and Altcoins are totally independent, still people are getting FUD and sell Bitcoin causing a crash.

People should be aware for a future, similar situation: Bitcoin wasn't responsible for what happened, Bitcoin was safe, working as usual and as usually proven since Bitcoin was started. No need to sell Bitcoin.


Bitcoin is technically independent from Altcoins


People need to learn to be wise and don't sell Bitcoin when different Altcoins are having techical problems. It will likely happen a lot more because we have a lot of shady Altcoins!

A very good recommendation: don't sell Bitcoin when a different Altcoin crashes!

After all, such crashes will only re- distribute coins from weak hands to strong hands (HODLers).
To be succesful means to understand Bitcoin is independent from Altcoins and to understand HODL. 

[jackg]

We did drop before the luna issues though - that didn't cause much of a drop, if any - but it is a good thing to remember that one altcoin crashing likely won't bring down the rest (this is what them being decentralised is for). The market is reacting less and less to this sort of fud though from what I can remember of things unrelated to bitcoin it's reacted to in the past.

[mk4]

We did drop before the luna issues though - that didn't cause much of a drop, if any - but it is a good thing to remember that one altcoin crashing likely won't bring down the rest (this is what them being decentralised is for). The market is reacting less and less to this sort of fud though from what I can remember of things unrelated to bitcoin it's reacted to in the past.

Yeap! Huge difference between technically (tech wise) independent, from being independent market-wise. The case with Terra/Luna is that their LFG group held a good amount of bitcoin (and sold almost all of it to hopefully save the $1 peg), so obviously bitcoin would drop as per typical market forces.

[Don Pedro Dinero]

I agree, just because it is technically independent does not mean that it will not affect, as has been the case. Bitcoin is also technically independent of the war in Ukraine and the rise in interest rates, and these, whether we like it or not, end up affecting price behaviour.

What I believe is that bitcoin is the best-performing altcoin compared to the other altcoins in the coming years.

[hugeblack]

If we are talking about technical independence, all the altcoins are independent and only the tokens depend on the blockchain included in them, and this also includes the second layer networks, NFTs and others.

But at one point or another, we will find that most of the altcoins are similar and carry copies of the Bitcoin code with some minor differences, except for some cryptocurrencies that carry fundamental differences.

[cryptoaddictchie]

It is independent from altcoins but those altcoins are literally dependent on btc. You see when btc is crashing the market turns out badly affected including major coins and tokens, and it does mean how the btc impacted the market so much. Whatever happened on it some follows to them even some arent but majority are likelt have the same trend.

[Anguwa]

A very good recommendation: don't sell Bitcoin when a different Altcoin crashes!

After all, such crashes will only re- distribute coins from weak hands to strong hands (HODLers).
To be succesful means to understand Bitcoin is independent from Altcoins and to understand HODL. 

When the cryptocurrency market goes bearish, strong people who are prepared to hold BTC acquire more BTC from the week once who are afraid of losing their entire asset to bitcoin.
Many people need to understand that the market crash is not due to a lack of trust in BTC, hence selling BTC when the market goes bearish is pointless since BTC will return and eventually take over all Altcoins.

[Daniel91]

I agree somewhat with the introductory statement but it must be said that altcoins depend on the performance of bitcoin.
Bitcoin is still the main entry for most crypto investors, and altcoin is usually discovered by ordinary investors at a later stage.
When the price of bitcoin rises, so does the price of most altcoins, but when the price of bitcoin starts to fall, so does the price of altcoin.
That’s why it’s hard to say that altcoins are so independent of bitcoin, at least not in all aspects.

[Coyster]

A very good recommendation: don't sell Bitcoin when a different Altcoin crashes!

Whenever there is a general drop in prices of cryptocurrency, FUD is bound to set in amongst different investors, and this causes them to sell out of panic. Well, for altcoin hodlers that is prolly the best thing to do, altcoins are short term projects, and you should not try to hold them through a bear market, sell them as soon as possible, even if you are at a loss, it is much better you leave with something, cause you could decide to hodl it, waiting for it to pump again, whereas that is the end of the coin.

Having said that, Bitcoin investors should know better, Bitcoin is a long term project, and if you want to speculate with its price, you have to expect returns in the long run, people who are usually affected by correction/plunge phases like this are get rich quick investors who aren't quite knowledgeable about the network, another section of people who get too worried are also people who go contrary to the rule of thumb of "do not invest more than you can afford to lose", such people can't basically watch their life savings keep dropping, it can do a lot of damage to their health, thus once there is a general drop in the market, they sell immediately, even when they are at a loss.

[hatshepsut93]

Luna has crashed Bitcoin because they owned a lot of bitcoins. It wasn't a distrust towards Luna that got carried into Bitcoin. But still it's problematic that a shitcoin project can acquire enough bitcoins to severely affect the price, even if just temporarily. To me it's a sign that Bitcoin is still very far from maturity, because mature assets don't crash hard and fast when a minor player dumps them.

[wagmi]

We did drop before the luna issues though - that didn't cause much of a drop, if any - but it is a good thing to remember that one altcoin crashing likely won't bring down the rest (this is what them being decentralised is for).

It was generally a current downtrend but most likely, we could have found a bottom around 34k.
Instead, we dropped below 30k, a very important resistance markt.
Now, we are barely mastering 30k and Bitcoin has some difficulties to conquer it back.

The market is reacting less and less to this sort of fud though from what I can remember of things unrelated to bitcoin it's reacted to in the past.

Yes!
It's a very good sign for progress. 

[BIT-BENDER]

From my knowledge and research, it in rare or even no cases where anyone would be regarding/Attributing the rise and fall of Bitcoin to any other Altcoins what so ever, rather I am more familiar with the logic of many Altcoins rise and fall being attached to how well or bad bitcoin is doing, there are even many projects that are waiting and watching how Bitcoin would do before launching that’s how strong the influence of Bitcoin is in crypto-currency.

[Welsh]

Yeah, it isn't technically connected, but the way I see it most of the users that are invested in altcoins, are likely to be invested in Bitcoin. So, any signs of difficulties the weaker hands for a lack of a better phrase, are likely to do the same thing with both; sell. That then might cause panic for a little more secure traders. So, genuinely we do see a somewhat correlation between the two. Although, bare in mind that the phrase "correlation doesn't equal causation" is actually quite accurate.

As Bitcoin progresses, gets older, has less volatility due to the block rewards decreasing, we should see more stability, and it'll look more like a normal currency. That's when adoption will increase ten fold.

[sheenshane]

It is independent from altcoins but those altcoins are literally dependent on btc.

I believed in this!
When everything Bitcoin price has dropped the price, all altcoins do the same swinging their price.  The fact because in all altcoins they have paired Bitcoin upon trading but Bitcoin didn't have paired altcoins.

I tend to agree and that's right, Bitcoin is independent of altcoins.
Since you're talking like food it might be Bitcoin here the same like rice and altcoins are those dishes that have different tastes some are nutritious and some are not.  

[Darker45]

Technically, Bitcoin is completely independent from altcoins. Altcoins are also independent from Bitcoin even though a number of them are inspired or even copied from Bitcoin. Altcoins are also largely independent from each other. Despite all these, however, Bitcoin and altcoins all formed the overarching crypto market. And while there may be a level of independence within and among them, it has somehow developed that not one of them is absolutely independent from the overall market.

[tranthidung]

You are saying oppositely with what you should say.

Bitcoin is a first successful cryptocurrency. After the success of Bitcoin, altcoins were created and most of them used source codes of Bitcoin.

• How Many Bitcoin Forks Are There? You will be surprised!!!
• Most of Bitcoin forks are dead. Most of them (if alive) are failed projects
• After a success of one altcoin, there are hundred of fork from that one. Most of them fail too

Education is key in any area. In crypto, it is vital, not only important. Without education, you will easily fall into scam projects and lose money.

• [LIST] Big Library of Bitcoin & Blockchain Books
• Bitcoin Books & Articles by Knut Svanholm. Useful Reading

[crwth]

Don't Altcoins depend on the price of BTC because of the following?

• Bitcoin has started it all
• Bitcoin is being used as a reserve
• Copycats of BTC

With the reasoning above, it's independent of altcoins. It must be considered the other way around. Altcoins are dependent on BTC because they use BTC to purchase altcoins. BTC is one of the most liquid coins, so you would imagine that every altcoin is dependent on BTC.

Being part of the cryptocurrency world, you wouldn't go wrong in choosing BTC for your leading coin.

[wagmi]

You are saying oppositely with what you should say.

Your claim is not true at all. I'm saying:

Important to know to prevent a loss

Bitcoin has crashed really hard recently but we also need to mention what's important:

Bitcoin wasn't responsible for what happened, Bitcoin was safe, working as usual and as usually proven since Bitcoin was started. It was caused by a single, very risky ALTCOIN, where fundamentals of were not proven sufficiently. It was a weak Altcoin causing a huge crash.
An Altcoin, where no link to Bitcoin's tech was around. Bitcoin and Altcoins are totally independent, still people are getting FUD and sell Bitcoin causing a crash.

People should be aware for a future, similar situation: Bitcoin wasn't responsible for what happened, Bitcoin was safe, working as usual and as usually proven since Bitcoin was started. No need to sell Bitcoin.


Bitcoin is technically independent from Altcoins


People need to learn to be wise and don't sell Bitcoin when different Altcoins are having techical problems. It will likely happen a lot more because we have a lot of shady Altcoins!

A very good recommendation: don't sell Bitcoin when a different Altcoin crashes!

After all, such crashes will only re- distribute coins from weak hands to strong hands (HODLers).
To be succesful means to understand Bitcoin is independent from Altcoins and to understand HODL.

Don't Altcoins depend on the price of BTC because of the following?

• Bitcoin has started it all
• Bitcoin is being used as a reserve
• Copycats of BTC

Yes, Altcoins follow often BTC's price because Bitcoin is used as a de facto reference.

[NotATether]

A generalization of your explanation is that all coins are independent from each other.

Why? Because they all have different chains.

The exception is if the coin is just a token, then it is dependent on the parent coin's blockchain as well.

Instead of the analogy to food, I think an analogy to credits is better: Suppose a certain bank makes a certain type of cheque which is accepted by all banks as a means of payment. This is in addition to regular banknotes. If that bank (corresponding to a blockchain community) crashes, the cheque - corresponding to an altcoin - ceases to become legal tender by the other banks.

P.S. people who are stock-oriented tend to sell other cryptocurrencies when others fall because they expect most of them to fall with them.

[pooya87]

I don't think I've ever heard anybody say bitcoin depends on altcoins!!! In fact everyone knows the other way is correct meaning altcoins depends on bitcoin.

It was caused by a single, very risky ALTCOIN,

Wrong.
Bitcoin price fell a lot before this shitcoin shenanigans even reached the news. In fact the drop that Luna's dump caused in bitcoin was very tiny.

People need to learn to be wise and don't sell Bitcoin when different Altcoins are having techical problems. It will likely happen a lot more because we have a lot of shady Altcoins!

Good points that I agree with but unfortunately weak hands don't care about good points otherwise they wouldn't have been considered weak hands