Are all altcoins dependent on Bitcoin? - page 20.

Traderbtcc

full member

Activity: 1190

Merit: 123

★Bitvest.io★ Play Plinko or Invest!

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

I want to understand if all altcoins are built upon the foundation of BTC. This is because when there is severe crash of BTC, all other coins, I mean all, also crash.

Is there no independence in the cryptocurrency world?

Thank you!

Altcoins are not built on bitcoin's blockchain, they all have the blockchains they are built on, e.g Ethereum has its own blockchain and Binance Smart Chain has it's own too, just that the crypto market follows bitcoins price movement, its just like a blow to the leader is a blow to his followers, bitcoin is the first cryptocurrency and also the number one in terms of coin raking, so whenever bitcoin dumps everyone just panic dump whatever altcoins they are holding.

Maestro75

sr. member

Activity: 2044

Merit: 330

Quote from: akirasendo17 on June 08, 2021, 08:21:26 AM

no, it's just that if bitcoin goes down some people panic and sold their coins since they thought if bitcoin goes down, altcoins will follow, it depends on the project mostly go down because there are things that happen in their community like FUD,

I think this is the part that can lead to what happens whenever Bitcoin dumps and altcoins follow immediately. And this is wrong. I do not know when investors will start to reason differently and act like Bitcoin does not matter that much any more. It is annoying to see altcoins looking well on buy change to sell once there is crash in Bitcoin. The earlier investors stop this, it will be better for everyone.

rahmathidayat93

full member

Activity: 910

Merit: 101

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

I want to understand if all altcoins are built upon the foundation of BTC. This is because when there is severe crash of BTC, all other coins, I mean all, also crash.

Is there no independence in the cryptocurrency world?

Thank you!

Independence will always exist if Bitcoin always grows, but if the leader of a coin like BTC experiences a decline, then the people will also experience hunger in the form of a decline, and this is considered very normal for some people in the cryptocurrency world.

Fivestar4everMVP

legendary

Activity: 2422

Merit: 1083

Leading Crypto Sports Betting & Casino Platform

Well, the correct answer is no, no altcoin is built upon bitcoin or built to depend on bitcoin per say, but the reason the entire market crashes when ever bitcoin is crashing is because - :

1. Bitcoin currently has the most market dominance in the entire crypto currency market capitalization, for this reason, when ever bitcoin drops, the entire market capitalization of all crypto put together also drops which in turn affects other altcoins.
2. Most altcoins are also pegged to btc in tradings, and bitcoin having the higher value, when ever its price drops, it sure to affect the altcoin its trading against

Stable coins are independent on bitcoin and their prices are always stable, they are a good way to protect your coins value in terms of negative sentiments in the market like we are currently experiencing.

isaac_clarke22

sr. member

Activity: 1610

Merit: 264

Quote from: Jawhead999 on June 08, 2021, 08:16:20 AM

~

Still some tend to follow the price of Bitcoin when it dumps.
In my perspective if I would invest like through diversification, I would consider from BTC to alts and vice versa depending on the situation.

@OP There are forks as what was mentioned but it isn't all made from BTC.

wxa7115

hero member

Activity: 2814

Merit: 734

Bitcoin is GOD

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

I want to understand if all altcoins are built upon the foundation of BTC. This is because when there is severe crash of BTC, all other coins, I mean all, also crash.

Is there no independence in the cryptocurrency world?

Thank you!

There is almost no independence on the way altcoins move compared to what we see with bitcoin and the reason for this is that most of those coins are copies of the original, the developers of those coins try to make it seems as if their coins are completely different but this is not the case.

I think that if we actually took the time to analyze every coin at most you will find 20 or 30 coins that are sufficiently different from the code of bitcoin to call them original coins, the rest are forks of bitcoin or of those coins, which shows why when bitcoin goes down the whole market goes down as well.

KingsDen

legendary

Activity: 1316

Merit: 1089

Goodnight, o_e_l_e_o 🌹

Quote from: btcltcdigger on June 08, 2021, 08:21:48 AM

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

When BTC starts dropping, people usually exit alts and try to buy BTC at lower prices, thus causing a cascade effect

Wow! This is very interesting and logical. I believe this. If not the only reason, it is surely one of the reasons. But clarity is still needed here. If people exit altcoins when BTC is dip to get BTC, making altcoins dip too. Why do altcoins rise when BTC start rising again. I think the exited altcoins in certain time is supposed to remain in dip and not follow BTC immediately.

meves99

jr. member

Activity: 62

Merit: 4

We know that cryptocurrencies have their own independence, so there is no need to hesitate.

tyz

legendary

Activity: 3360

Merit: 1533

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

I want to understand if all altcoins are built upon the foundation of BTC. This is because when there is severe crash of BTC, all other coins, I mean all, also crash.

Is there no independence in the cryptocurrency world?

Thank you!

Well, you can say 99% of alts go in the direction of Bitcoin. When Bitcoin falls, so do altcoins. When Bitcoins rise, Altcoins rise too. Sometimes there is a certain time difference between the relation, but in general this is the direction since cryptos emerge. Depending on the market phase, there are always individual coins that escape this trend, but these are very rare and usually short-lived.

tabas

hero member

Activity: 3234

Merit: 774

🌀 Cosmic Casino

With the market connection, yes, majority of the altcoins are dependent to bitcoin. As you can see, when bitcoin has pumped, most of the altcoins pumped.
And when bitcoin drops significantly, the alts did the same.

Ozero

full member

Activity: 2142

Merit: 183

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

I want to understand if all altcoins are built upon the foundation of BTC. This is because when there is severe crash of BTC, all other coins, I mean all, also crash.

Is there no independence in the cryptocurrency world?

Thank you!

Only some coins, such as Ethereum, Bth and others, have appeared on the basis of Bitcoin, such as Ethereum, Bth. All other cryptocurrency have the same blockchain technology, however, are practically relatively independent in this market. However, other cryptocurrencies depend on the price of Bitcoin and this is associated with a high level of its capitalization. The larger in a certain cryptocurracy investors invest money, the greater influence it is on the market, which means that it affects the formation of prices for other types of cryptocurrency.
Cryptocurrency is relatively developing relatively and is hardly the existing price dominance of Bitcoin will be saved in a remote perspective.

vabchgent

sr. member

Activity: 840

Merit: 251

Quote from: Jawhead999 on June 08, 2021, 08:16:20 AM

No, not all altcoins were made upon of BTC, only Bitcoin forks (e.g. BCH, BSV etc) are built upon BTC. But it's doesn't mean all Bitcoin forks will follow Bitcoin price because it's not pegged 1:1 just like Wrapped Bitcoin (Bitcoin in another chain).

Also not all altcoins are following Bitcoin price, it's because of the market condition whether they see Bitcoin pump they believe altcoins will follow to since the market is healthy and vice versa. USDT is the one coin that often do opposite with Bitcoin, because when Bitcoin dump people will sell their Bitcoin to USDT. This will make USDT price higher (a bit pump) since many people have high demand.

USDT is a stable coin. It has nothing to do with the question the OP asked. USDT is supposed to be equal to 1, no matter what...

I would say that indeed 100% of the coins are somehow dependent on Bitcoin. Usually under any circumstance, if Bitcoin crashes really hard 100% of the alt coins follow. It is extremely rare that an alt coin stays where it is or even makes gains when Bitcoin loses significantly, and thereby I mean double digit percentages in a day.

Sterbens

sr. member

Activity: 1848

Merit: 341

Duelbits.com

almost everyone said no, and I thought so I should wait for at least a simple and true argument as to why there should be a chain binding Altcoins when everything is almost said to be a result of the Bitcoin Correction.
The only thing I can understand right now is about the pairing of altcoins with bitcoins in some markets. but that reason is also not enough. because basically the altcoin market tradition follows Bitcoin price movements and can be seen when the Bitcoin price increase sometimes experienced by Altcoin is not fully up. people will focus on the price of Bitcoin. but when Bitcoin price drops, Altcoin will be affected.

I think if things continue like this in the future, it seems that Altcoins don't have the right ideal in the market for small traders who can't afford Bitcoin.

Dexion

full member

Activity: 812

Merit: 101

No friends, maybe it happened because of bad news about bitcoin, then many people panic and sell their assets because they think bitcoin will go down, and think if there is a decline in BTC then altcoins will follow. In fact, altcoins can go down because of problems in their own environment, whether it's an inappropriate target, funding, or other things, as well as investors' assumption that the project will potentially be a scam. Many factors can influence it.

devil2man

member

Activity: 759

Merit: 15

unfortunately bitcoin is and remains the reference point for comparison of all altcoin markets / exchanges as a consequence of this fact bitcoin remains a driver of almost all the altcoins that follow its trail and its changes in value both towards the 'up and down, i personally hope that this situation can change and that the true value of altcoins can be given by their potential on the market and as applications in the various sectors where they are used

Jackl87

sr. member

Activity: 1722

Merit: 269

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

I want to understand if all altcoins are built upon the foundation of BTC. This is because when there is severe crash of BTC, all other coins, I mean all, also crash.

Is there no independence in the cryptocurrency world?

Thank you!

If you mean if the code of all cryptocurrencies is based on the code of bitcoin then the answer is no. Litecoin is an example that is really based on bitcoin but made a few tweeks to the block time and the type of proof of work algorithm. Most other coins are either own coins with a own blockchain infrastructure or Tokens of the Ethereum Network or Waves Tokens or Tokens of any other Smart Contract platform.
The reason why the price of all cryptocurrencies is going down and up when bitcoin is going down and up is that bitcoins is still the biggest and most popular crypto project out there and a lot of people that are not into crypto think that crypto = bitcoin.

Mahdirakib

legendary

Activity: 1946

Merit: 1026

In Search of Incredible

Whole crypto market crash beside BTC while there is FUD regarding bitcoin. But it doesn't happen while we hear any bad news about any individual alts. Everything happens for the investor thought. Bitcoin is known as the king of crypto world, and investor has taken it as an idol of crypto market. That's the main reason behind it. Although we have seen different movement also. But you can't expect stability or upward move of altcoins when there is FUD/bad news about BTC.

LostEcho

jr. member

Activity: 75

Merit: 4

I don't care about what others are telling you right now, what I've noticed is once bitcoin starts rising most altcoins will revaluate as well and same thing will happen once BTC starts dumping, BTC is the first and it has the highest liquidity and volumes so it has the power to reshape crypto market valuation

DapanasFruit

member

Activity: 1218

Merit: 49

Binance #Smart World Global Token

In many ways the answer is a big NO but in reality the answer is YES. And it is because Bitcoin and all alts are all belonging to one industry - cryptocurrency so no wonder that if there is a trending Bitcoin dip almost all alts can be affected though I am not saying that there will no exceptions to this rule from time to time as there can be some breakaways happening. I had been watching with the cryptocurrency market for years now (though am not an expert in any way) and I encountered this same situation many times already.

UKprod

member

Activity: 237

Merit: 67

Let's create the Indie Metaverse!

Quote from: KingsDen on June 08, 2021, 04:54:52 AM

I want to understand if all altcoins are built upon the foundation of BTC. This is because when there is severe crash of BTC, all other coins, I mean all, also crash.

Is there no independence in the cryptocurrency world?

Thank you!

This is more of a market sentiment rather than the foundation being BTC. Say for example, MATIC (polygon) had crashed when BTC had crashed, but it recovered much faster than the recovery of the rest of the altcoin and bitcoin in itself.

Further, the cryptocurrency market is very immature i.e. minor comments and tweets from certain individuals can rock the cryptocurrency market up and down. However, once things stabilize and crypto market turns more mature, we could see each altcoin being independent from Bitcoin.

Topic: Are all altcoins dependent on Bitcoin? - page 20. (Read 3909 times)