Bitcoin Dominance and Bitcoin Meme - page 3.

pooya87

legendary

Activity: 3472

Merit: 10611

Quote from: mk4 on November 12, 2018, 10:50:21 AM

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While I agree with you, I wouldn't call it meaningless though. I think people just take the marketcap statistic a lot less seriously, as it's definitely quite inaccurate. I think it's a decent statistic to use when ranking probably only the top 20 coins/tokens when determining which coins/tokens are more "valuable" in terms of market value.

but it IS meaningless. specially when you are talking about value of a cryptocurrency and want to use it for ranking. value of a coin should not be determined by how much supply it has, no matter how high or low it is in some arbitrary ranking. what you should use is their utilities and a lot of other factors such as decentralization, number of nodes, number of transactions, number of merchants,...

and while we are at it we shouldn't even rank coins that are not even similar. we should categorize them and then rank them. for example centralized coins should not be in the same ranking as decentralized coins. or tokens (like ETH, Waves,...) should not be in the same category as currencies (bitcoin, litecoin, IOTA,...)

mk4

legendary

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Merit: 3873

📟 t3rminal.xyz

Quote from: o_e_l_e_o on November 12, 2018, 10:11:45 AM

Bitcoin dominance is a meaningless statistic because it is based on marketcap, which is an equally meaningless statistic.

Create an ERC-20 token with a supply of 1 billion tokens. You can do this in under an hour. Sell a single token to a friend/idiot for 10 dollars. Congratulations, your market cap is now 10 billion dollars, you own around 5% of the entire cryptocurrency marketcap, and you have reduced bitcoin's dominance by about 2.5%.

This is an extreme example, but you can see what will happen if you take less extreme numbers but repeat the process 2000+ times, which is exactly what has happened over the last few years. Almost every altcoin is worthless trash - their quoted marketcap value means nothing, and so their reduction of "bitcoin dominance" by flooding the market with trash equally means nothing.

While I agree with you, I wouldn't call it meaningless though. I think people just take the marketcap statistic a lot less seriously, as it's definitely quite inaccurate. I think it's a decent statistic to use when ranking probably only the top 20 coins/tokens when determining which coins/tokens are more "valuable" in terms of market value.

o_e_l_e_o

legendary

Activity: 2268

Merit: 18771

Bitcoin dominance is a meaningless statistic because it is based on marketcap, which is an equally meaningless statistic.

Create an ERC-20 token with a supply of 1 billion tokens. You can do this in under an hour. Sell a single token to a friend/idiot for 10 dollars. Congratulations, your market cap is now 10 billion dollars, you own around 5% of the entire cryptocurrency marketcap, and you have reduced bitcoin's dominance by about 2.5%.

This is an extreme example, but you can see what will happen if you take less extreme numbers but repeat the process 2000+ times, which is exactly what has happened over the last few years. Almost every altcoin is worthless trash - their quoted marketcap value means nothing, and so their reduction of "bitcoin dominance" by flooding the market with trash equally means nothing.

BrewMaster

legendary

Activity: 2128

Merit: 1293

There is trouble abrewing

since you love memes so much i made you one from scratch to describe what you call "dominance" really looks like:

back in 2010 we had bitcoin and we had other altcoins which were trying to DO something and we had occasional shitcoin here and there. what you call "dominance" was the market cap which was 95%.
in 2018 we have bitcoin which has grown a lot but we also have a lot of shitcoins, most of which are a big pile of shit only because they have a huge supply which makes their market cap big. this also decreases the market cap share of bitcoin making the percentage (which you refer to as dominance) smaller. they also are hiding (burying) any good altcoin that may exist under their pump and dump crap!

NeuroticR

full member

Activity: 281

Merit: 108

Crypto Enthusiast, Crypto Critic

Back in 2013, Bitcoin used to dominate over 95% of the crypto market capitalization. Bitcoin dominance has been prominent, quite stable and over 80% until mid 2017. Then things were changed and an Altcoin season took over. In the last couple of years, Bitcoin market share went down below 40% for three consecutive times, although it managed to get back up to over 50% again each time. Next couple of years will be very interesting and the trend will tell us whether Altcoins are NPC or not!

However, I have created this post to publicly discuss more on this topic and also to share interesting/funny/creative meme on Bitcoin. Everyone is welcome to participate in this discussion and meme sharing.

#Bitcoin #meme

Topic: Bitcoin Dominance and Bitcoin Meme - page 3. (Read 703 times)