Hey people of steem,
This is more of an opinion piece than a market analysis.
When swings of bitcoin happen in the market we see the alts follow. It is usually a day or two after. When one goes up so do a lot of the others. There is probably several reasons for this, one being that bitcoin is still the main crypto that people associate with and it could be litmus test for the rest of them. It is also the majority of the market (though that is changing). But I think there is a bigger that bitcoin is controlling the market.
Bitcoin is the gate in and out of crypto. When people want to buy an alt they usually use bitcoin and when they want fiat they sell bitcoin. Etherreum and litecoin are started to be that as well but bitcoin is still the main player. And as we are still in a world of "how do I spend it" changing it for fiat is very important. Unless we see a new stable coin replace it bitcoin will always by the flagship that moves the market.
For steem we would need to be able to buy and sell it directly for it to be less affected when bitcoin swings. This could be done through the site but I am sure there a lot of legalities that we need to follow. But it might be worth it in the future when steem goes big.
We need a website like localbitcoins to buy and sell steem directly.
Not just steem but top 10 others
Payfair.io
I really like the idea of being able to buy more coins with Fiat. I think it would overall be good for the market and help single out coins that are really worth owning. It's been really fun to go to Farmers markets lately and see signs that some vendors are starting to accept crypto. I'm curious when it will start making it into real/often used businesses.
It would be really great if other altcoins could be independent of bitcoin and have autonomy. The market swings are generally moved by bitcoin and sometimes one wonders if this markets really are independent. Obviously they are not.
If more exchanges would start accepting other Cryptos directly in exchange for fiat, it would be really great. A lot of indigenous exchanges have been built for Steem like that but these are just smaller exchanges for single currencies.
What if there was one big exchange built for the Steem blockchain, where Steem and SBD would be the no.1 crypto accepted in exchange for all others and fiat.
Imagine that
I hope that will at least switch over to ETH soon. I think the writing is on the wall (or the electricity meter) for Proof of Work, and BTC may very well never recover at this point.
i agree and think the same
Well first of all if you notice the swings of the alts are coming a few days after, wait for bitcoin to go up, and then sell your bitcoin to buy alts, then wait for them to go up and bitcoin to go down and do vice versa. I mean if you see a clear pattern. :)
Yet I don't just think it has to do with the fact that coins cannot always be traded without having to go through bitcoin. I mean the current valuation of bitcoin if I would sell STEEM wouldn't affect the price that much. I buy bitcoin for lets say $8000 and sell it one second later to transfer to euro's.
I think it has more to do with the fact that most people believe in bitcoin as a thermometer for all the cryptos. Therefore if it does bad, all cryptos must do bad, which is why we are seeing these fluctuations.
This might change in the future when there will be more easy options to buy cryptos, without first having to get BTC.
Agreed.
I think the steem devs will develop such kind of services. they already announced that they will have kinda exchange to trade steem or sbd and smart media tokens directly without using bitcoin, so they will have some improvements to buy easily steem without the need to buy BTC for joining the crypto world... the media is a big deal, this could evolution steem for being resistant to the BTC/crypto inflation. greez, s error
Bitcoin will always be the coin everything is measured in. Can't go away
Bitcoin dominance will rise!
Even if you were able to buy other cryptos directly with fiat, that will not change the correlation that other alts have with bitcoin and that's primarily because of principles of traditional financial markets. Given that majority of traders of #cryptocurrencies also happen to be traders in traditional financial markets, the principles of returns based on relative risk apply to crypto markets as well.
Bitcoin is the the absolute cryptocurrency for everyome. Something that has existed for nearly 10 years and now has proven technology and use case. Other #cryptocurrencies still have to prove themselves. Bitcoin is the risk free asset of crypto world. The risk of every other cryptocurrency is relative to bitcoin. If bitcoin turns out to be absolute fraud tomorrow, you can say goodbye to the whole set of cryptocurrencies out there.
This correlation will never break as it hasn't broken even for the likes of etheruem, the only other successful cryptocurrency out there. And trading of #cryptocurrencies has little to do with actual use case. Traders primarily use technical analysis to trade these currencies and in the absence of fundamental driven investing, correlation between currencies is unlikely to break.
And that strategy, while valid, annoys me to no end. I try to pick my coins based on the long term, actual value proposition. I have an unfounded hunch that the utility of a coin does affect its value, it's just that so far that effect is masked by speculative trading (I try not to think about the DJIA when I consider this). I have hopes that eventually coins with a strong use case can be used widely enough that the inverse will happen, and it's one of the reasons I try to encourage strong content here.
True, the utility of a coin should absolutely effect its value. There should be a fundamental valuation assigned to a project. I think some projects like ethereum and monero should have broken this correlation by now. But given that most money in cryptos is speculative or well, money that is short term and drives daily volatility is speculative, so alts are just seen as a way to get beta exposure.
I think one reason ethereum may not have broken this correlation is that one is yet to see how useful ethereum can be in the long run. True, a lot of projects have been launched on it but most have little to no use case truly speaking. Ethereum will find its own valuation once the dust settles.
I agree ..last I monitor market movements always follow bitcoin prices, while bitcoin down, other crypto also follow the trail.
I think bitcoin is the mother of all crypto, is there any other way to make steam increase?
Thanks @whatageek
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Nice points there. I think there is something about Bitcoin that sends ripples down to the smaller altcoins. Crypto confidence is built around BTC and when it's price shift, it becomes a chain reaction.
Bitcoin is the OG, I have never had any of it but 100% of my funds are in crypto XD
Been thinking about buying an eBay gift card with some of my crypto instead of trading for USD, but of course I start checking prices and watching trends before striking and they keep getting less lucrative >.<
I should of followed the tenets of Cobra Kai. Strike first, strike hard, no mercy.
it is a tremendous success for you, i will follow you @whatageek
nice posted bro tnx u
I feel like this is because you need to buy many cryptos with bitcoin
I feel like this is because you need to buy many cryptos with bitcoin
Why cant we buy all altcoins with fiat ?
In our country we have an exchange where we sell and buy steem directly, but the final sellers still change it to bitcoin
Its all about the btc pair to other cryptos, we must get other pairs as well that is the only way the alts wil be free from bitcoin!
Yes true! The additional pairs would actually help a lot to get less ties!
sat value, alt coins are tied to sat value! We need more fiat gateways
Almost need a decentralized exchange that has the ability to purchase via USD and along with token swaps. For know pretty much the only way to buy alt coins is via Bitcoin or Ethereum...... until that changes..... alts will be pegged to BTC.
I would like to buy steem directly through the steemit platform that would be great. That would mean that steemit would have its own exchange.
I would love that too @clearbluecrypto. I think however they won't do that soon due to all the regulations and the fact that STEEM doesn't have such a big market cap yet. As well as that most people on steemit are long term STEEM holders so they do not trade a lot. At least, that is my guess.
I would love that too @clearbluecrypto. I think however they won't do that soon due to all the regulations and the fact that STEEM doesn't have such a big market cap yet. As well as that most people on steemit are long term STEEM holders so they do not trade a lot. At least, that is my guess.
buying altcoins with fiat will become a thing, but no one can tell when
I'm not sure they are tied. I mean there are a few in my wallet having rather little ties with whats happening at exchanges. They are more sticky to whats in there business. Eg PKT of Playkey. They are about to start to accept token as a payment and announced buyback of 2M tokens. It influence the rate much more than the crash of BTC
This "phenomenon" was a big quest from my first days in crypto and I still cant really find an answer. Of course, all coins/tokens are affected from FUDs or Hypes, but it seems Bitcoin is not an but THE effect. lol.
So today I think there will be 1-2, maybe 5 coins that make the race. And I think the so called mainstream adaption, which is the key to everything else, is the community, is the fame and not(!) the technical things.
This may not sound very likely, but Bitcoin is in this list of survivors, even if not all problems will be solved, Lightning etc.
I see Bitcoin being top gun until 2022 minimum. There is still no true contender and once a contender appears it would still take time to build trust and grow the technology.