Topic: If crypto coins increase in value with Bitcoin do they go down as well? (Read 995 times)
December 27, 2013, 08:27:40 AM
That's possible furthermore cryptocurrencies may increase in value with Bitcoin or even downl.
December 26, 2013, 08:27:26 PM
Perhaps likely analogy might be that of counterfeited branded products such as Levi Jeans. Whilst Levi continue there is blackmarket but if they went out of business desire for their copies would dwindle and perish. The counterfeits were always reliant on brand name would never have made money unless Levi existed in first place. Levi gave copies value. Flaw in this as analogy becomes clear because while you can still make use of copied jeans with or without 'brand name' cant spend alt cryptos because without Bitcoin there is no opportunity to use them as store of value let alone currency. Yet?
December 26, 2013, 08:05:58 PM
Not always no, but typically. Look for yourself at http://coinmarketcap.com
December 26, 2013, 08:02:56 PM
It seems likely that the core popularity of Bitcoin (and the fact that people tend to exchange alt-currencies through BTC) will cause its value changes to translate to value changes in alt-currencies. As a result, the combination of arbitrage and Bitcoin's sheer audience fits allgoodthings1 analysis.
December 26, 2013, 07:47:42 PM
Great posts! I love that quote "A rising tide lifts all ships.". Tide being Bitcoin ships being alt cryptos.
Makes me wonder about long term success or failure for alt cryptos. If saying behaviour is similar to normal stocks thats fine. Prompts the question how so because normal stocks are real world companies who independently of share price have real world value whereas alt cryptos seem to exist merely as function of Bitcoin. If can't buy goods or services using alt cryptos but can trade for value isnt demise inevitable at some future point? More and more crop up everyday incredibly they seem to create value from nothing but for each one created surely diluted they become. That value wouldnt exist without Bitcoin imo so perhaps we need them as standby incase Bitcoin suffers sudden and catastrophic failure?
Makes me wonder about long term success or failure for alt cryptos. If saying behaviour is similar to normal stocks thats fine. Prompts the question how so because normal stocks are real world companies who independently of share price have real world value whereas alt cryptos seem to exist merely as function of Bitcoin. If can't buy goods or services using alt cryptos but can trade for value isnt demise inevitable at some future point? More and more crop up everyday incredibly they seem to create value from nothing but for each one created surely diluted they become. That value wouldnt exist without Bitcoin imo so perhaps we need them as standby incase Bitcoin suffers sudden and catastrophic failure?
December 26, 2013, 07:02:18 PM
If we agree that when Bitcoins price goes up or down and assume cryto coins follow trend how is it crypto coins do that if they dont have own economy like Bitcoin?
Alternative coins main use is trading for Bitcoin, so BTC/Alternative coin remains about the same regardless of Bitcoin price. BTC/Alternative coin affect only supply and demand.
December 26, 2013, 06:49:23 PM
"A rising tide lifts all ships." This in general, the cryptos tend to go up and down together and proportionally; in the same way and no less than individual stocks in the stock market. There's a degree to which all the other cryptos ride on the fortunes of bitcoin. But they all have they own news and events that effect them individually, too.
There is a lot of cross-platform arbitrage going on (especially on BTC-e), which helps keep the currencies more together in price movement.
There is a lot of cross-platform arbitrage going on (especially on BTC-e), which helps keep the currencies more together in price movement.
December 26, 2013, 05:51:59 PM
I read Satoshis white paper and want to know more about crypto coins. So Bitcoin get lions share of global profits other crypto coins ride on its back are prices directly proportional? Asking because utility of Bitcoin gives value when people talk about not having intrinsic value yeah. If we agree that when Bitcoins price goes up or down and assume cryto coins follow trend how is it crypto coins do that if they dont have own economy like Bitcoin? Seems to me these markets rely on Bitcoins success would collapse if they tried to stand on own or am I missing something? Just trying to learn more thanks.
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