[2017-03-12] Bitcoin’s Market Cap Percentage Continues To Shrink Due To Mounting

d5000

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Quote from: TraderTimm on March 13, 2017, 09:36:34 AM

Market cap is a piss-poor metric to compare in isolation.

Hey guys I just made up "DumbshitCoin" and it has 40 million possible units priced at a dollar each!

You are not completely wrong, there may be better metrics than market cap. But what you say in your second sentence is true for smaller altcoins, but the top 10 altcoins have already a pretty mature market where this kind of manipulation is no longer possible.

Still, as I said before, the main driver in the altcoin market is not an already occurring mass adoption, but speculation on a future mass adoption - partly caused by Bitcoin's "scalability stalemate".

TraderTimm

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Market cap is a piss-poor metric to compare in isolation.

Hey guys I just made up "DumbshitCoin" and it has 40 million possible units priced at a dollar each! Holy shit, my market cap is more than Bitcoin!!!! (With zero merchant adoption, no developer interest, no user interest...)

Yeah... that's the ticket...

1Referee

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Quote from: TheAlgorithm on March 12, 2017, 04:44:05 PM

Quote from: 1Referee on March 12, 2017, 03:35:16 PM

it's just the fact that pure manipulation makes their price (and thus market cap) go up higher than ever.

This is sort of true, but Bitcoin is not completely free either. A very large amount of Bitcoin is in the hands of a few investors, with Jihan Wu for example.

Correct, but Bitcoin enjoys real world usage, while the only sort of usage that the top altcoins enjoy is all in speculative terms. Problem with these top altcoins is that they either set up a fake ICO where they "bought" their own coins for a large part, and the other made sure it possesses a huge amount of coins through instamine. All shady.

Papa Bear

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One contributing factor to the “demise” of bitcoin is the high transaction fee problem. With fees increasing rapidly, altcoins are becoming more popular due to lower costs. Then again, none of these networks have been tested to handle the transaction volume bitcoin processes every day. Until that happens, it is impossible to tell which currency can keep the costs down in the end.

notthematrix

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https://www.youtube.com/watch?v=Ibz_HMKHQl4

notthematrix

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New menbers that don't understand.
Look transaction fees are never a problem.
Bitcoin is the most secure transaction you can get in the market.
it may very well mean that you can not pay your coffee with it , but then it could still very well serve as a golden standard!
Not paying your coffee is something only westeren countries with not yet collapsed fiat currencies care about.
I advice the new users to watch this clip.
https://www.youtube.com/watch?v=6ZCVQHtD2l4
to understand the power of bitcoin , and why paying your coffee is not all that important for now.

TheAlgorithm

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Quote from: 1Referee on March 12, 2017, 03:35:16 PM

it's just the fact that pure manipulation makes their price (and thus market cap) go up higher than ever.

This is sort of true, but Bitcoin is not completely free either. A very large amount of Bitcoin is in the hands of a few investors, with Jihan Wu for example.

ImHash

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If you have noticed this already or not but only doge coin went down in satoshi price as bitcoin was rising and maintained fiat value give or take.
Other alts started to rise contrary to the bitcoin price, of course if people think oh lets buy that coin it's going up and then seeing it really went up they start to buy more up to a point where those long term holders run out of their stashes and there is no more coins to buy and then they will turn to mining those coins or staking them which it will result in the same way as before, weak networks, no use cases, no passionate community and BOOM faces turn to sad mood and dumps start without anyone to pick them back on like bitcoin.
We really pick the dumped bitcoins every time.

d5000

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Quote from: darkangel11 on March 12, 2017, 09:50:32 AM

I wouldn't say it's the fees. When you trade the fees don't affect you as long as you don't move coins back to the wallet.

My guess is that it is not because of the fees for traders, but because of speculation on an "alternative" that could rival Bitcoin for smaller payments, just because of the high Bitcoin fees and the transaction bottlenecks. For now, traders have "voted" for Dash (one of the most obscure coins of the top 10 due to its "hidden instamine"). Ethereum, instead, seems to have returned to growth because there were no bad news in the last weeks Wink

1Referee

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It says absolutely nothing. If you look at the top altcoins when it comes to their market cap, it's just the fact that pure manipulation makes their price (and thus market cap) go up higher than ever. The majority of the circulating coins from each top altcoin are in the hands of a very tiny number of people, and thus they can basically keep buying up their own coins continuosly and push the price up even further. In that regard, I wouldn't be surprised if more altcoins in the future will hit the $1 billion market cap, while the current top market cap coins will most likely hit newer highs.

Alesis

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But while its market cap percentage lowers the altcoin community will never settle on one. There's huge amounts of competition between people who like Monero and people who like Dash, there's people who love or hate Ethereum, people who are loyal to Litecoin or even Dogecoin, and the list goes on. Therefore even if the market cap of Bitcoin was below half, it would still be the dominant cryptocurrency.

Still, the news is slightly unsettling.

darkangel11

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I wouldn't say it's the fees. When you trade the fees don't affect you as long as you don't move coins back to the wallet.
I'd say traders are one of the groups that shouldn't be affected by growing fees. Altcoins are more volatile and offer more speculative possibilities to traders.

peter0425

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Bitcoin’s Market Cap Percentage Continues To Shrink Due To Mounting Transaction Fees

No one can deny the cryptocurrency is thriving right now. Some people want to see more money flow to bitcoin and other currencies at a quicker pace, though. One interesting trend is how bitcoin’s percentage of the total cryptocurrency market cap is going downhill. Right now, that percentage sits close to 81%, whereas it used to be over 95% in January of 2014.

For the longest time, bitcoin has been the dominant cryptocurrency. That is only normal, as it is the only one to gain some market traction. However, several altcoins have proven to be a favorite among speculators and traders as well. Albeit very few of these currencies have use cases, they are perfect vehicles for value speculation. As a result, some money is flowing from bitcoin into the altcoin sector on a regular basis.

http://www.newsbtc.com/2017/03/12/bitcoins-market-cap-percentage-continues-shrink-due-mounting-transaction-fees/

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