Why altcoins are backed by Bitcoin? - page 2.

nrvasquez

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Quote from: elda34b on May 24, 2021, 05:11:23 AM

What exactly do you mean by "backed"? If we look from your message, I think your question is more or less why altcoin took a big hit when Bitcoin dump. That was answered by some people above.

In crypto, people usually use the "backed" term to indicate that the token/coin has other assets to guarantee its value. There are some altcoins backed by BTC such as WBTC (or at least they claim to be), but not all of them do this.

Yeah, I guess I'm misunderstood what "backed" means. Answering the question from the OP, I think it's because bitcoin is the fundamentals of crypto as a whole, so where there is a change that occurs in bitcoin, other cryptos will follow it (although this doesn't apply to all existing cryptos, but most and more 80%).

elda34b

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What exactly do you mean by "backed"? If we look from your message, I think your question is more or less why altcoin took a big hit when Bitcoin dump. That was answered by some people above.

In crypto, people usually use the "backed" term to indicate that the token/coin has other assets to guarantee its value. There are some altcoins backed by BTC such as WBTC (or at least they claim to be), but not all of them do this.

blue Snow

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Quote from: cn567 on May 23, 2021, 08:27:22 PM

So I am a newbie and I always had this question in my mind why all altcoins are backed with BTC..

The altcoin isn't backed by bitcoin, you must know all market altcoin has pair of BTC. just look at coinmarketcap.
when bitcoin dump, altcoin would be dump and when bitcoin pump, altcoin would be dump either. After that, the altcoin will have the session (altcoin session). Holder altcoin should know the situation right now, this happens all time.

7788bitcoin

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Quote from: cn567 on May 23, 2021, 08:27:22 PM

So I am a newbie and I always had this question in my mind why all altcoins are backed with BTC because at times like these altcoins are the most affected one there are some really great altcoins out there but due to this correction we can see a massive drop in those coins and I don't think it is fair to other coins that because of only one single coin they also see a massive drop

I cannot understand why you think think that the alts are backed by Bitcoin, if you are talking about trading pair, then some of the coins have other trading pairs as well including ETH and other fiat currency trading pairs and whenever there is a correction in Bitcoin it does not mean that correction is pulling the entire market down, everyone else holding those alts are selling off their coins as well.

ALLON2017

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Exchanges paired a lot of altcoins with Bitcoin, to double dip in FEES ,
1. Deposit fiat and buy Bitcoin you pay a fee.
2. Buy altcoin with Bitcoin you pay fee,
3. Withdraw Bitcoin or altcoin you pay fee
Thats why alts are backed by BTC so exchanges can rip you off

KaliLinux

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Quote from: cn567 on May 23, 2021, 08:27:22 PM

So I am a newbie and I always had this question in my mind why all altcoins are backed with BTC because at times like these altcoins are the most affected one there are some really great altcoins out there but due to this correction we can see a massive drop in those coins and I don't think it is fair to other coins that because of only one single coin they also see a massive drop.

I am saying again I am just a newbie who is trying to understand these market.

Thank you

Basically, because almost all Altcoins have trading pair with Bitcoin and as such, if the price of Bitcoin goes down it will naturally affect the Altcoin and you must understand that since Bitcoin is like the Alfa or is the Alfa of crypto, people will naturally panic sell their alts if the reaction to bitcoin price even the Alts that are not paired with BTC.

sitbang

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Bitcoin is the number 1 cryptocurrency so most altcoins will only follow the price of Bitcoin, in the cryto market there are many altcoins, of course different, some have big or small potential, some of these altcoins use Bitcoin on their platform, so it cannot be ruled out, that Bitcoin is king.

pealr12

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Quote from: cn567 on May 23, 2021, 08:27:22 PM

So I am a newbie and I always had this question in my mind why all altcoins are backed with BTC because at times like these altcoins are the most affected one there are some really great altcoins out there but due to this correction we can see a massive drop in those coins and I don't think it is fair to other coins that because of only one single coin they also see a massive drop.

I am saying again I am just a newbie who is trying to understand these market.

Thank you

btc is the first crypto to ever and has a huge market cap and widely accepted in the crypto community, every exchange list btc as trading pair against other coins/tokens, any project who want to have a wide reach of users will definitely paired to btc when listing on exchange to have wider market, so in this case, when btc going down most alts are equally down, same when btc is up. the whole market largely depend on btc.

terrific

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Quote from: cn567 on May 23, 2021, 08:27:22 PM

So I am a newbie and I always had this question in my mind why all altcoins are backed with BTC because at times like these altcoins are the most affected one there are some really great altcoins out there but due to this correction we can see a massive drop in those coins and I don't think it is fair to other coins that because of only one single coin they also see a massive drop.

I am saying again I am just a newbie who is trying to understand these market.

Thank you

There's no being fair or unfair on the market. They're mostly paired with bitcoin and that's why all of them are affected when bitcoin drops.
It is okay that you're asking and being curious what's really happening and for sure that you get to learn more about the market.

Bitcoinjheta

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Bitcoin and altcoins are two independent coins but are correlated to each other. Bitcoin being the leading coin in the crypto world will surely affect the coins following its path once the price will rise the others will rise as well and vise versa.

Teraboy

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In my opinion if altcoin didn't backed by bitcoin but bitcoin is a very strong coin that already affected the whole of market. You can dig into the old thread on this forum about the history of crypto.
Bitcoin is the first crypto that issued by satoshi and then there have been new developers started to work with the code of bitcoin.
The bitcoin code is open source and that was making altcoin to be exist in the market. This is making altcoin fundamentally connected with bitcoin.

MusaMohamed

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Quote from: cn567 on May 23, 2021, 08:27:22 PM

So I am a newbie and I always had this question in my mind why all altcoins are backed with BTC because at times like these altcoins are the most affected one there are some really great altcoins out there but due to this correction we can see a massive drop in those coins and I don't think it is fair to other coins that because of only one single coin they also see a massive drop.

Altcoins are parasites on the trend, success of Bitcoin. Bitcoin does not have relation with altcoins and it does not back altcoins.

Bitcoin rises, altcoins can rise together if it is a bull trend. If the market is in a bearish trend, altcoins can move side way or fall even bitcoin is on a rise.

Bitcoin falls, altcoins will be in bloodbath.

After bloodbath of Bitcoin, it will rally first and if there are altcoins will follow Bitcoin, they would be top altcoins.

posporo

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In my opinion, it is because Bitcoin is the base of cryptocurrency so mostly altcoins will just follows through the hype of Bitcoin even though there are lots of different altcoins which have a big potential, most of this altcoins are using Bitcoin in their platforms so it is unavoidable that Bitcoin is the GOAT in cryptocurrency.

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Quote from: southerngentuk on May 23, 2021, 10:08:17 PM

You just need to understand as follows, altcoins are created to steal bitcoin.
And when the bitcoin are stolen we get the altcoins.

That's a different perspective, it sounded like the altcoins have no right to exist.

Altcoins are not backed by Bitcoin. BTC is just the base currency when an altcoin is paired to BTC because we base the price on BTC. The price of ADA for example is 0.00003876 BTC which currently is worth $1.38 as the value in USD or USDT.

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Quote from: cn567 on May 23, 2021, 08:27:22 PM

I am saying again I am just a newbie who is trying to understand these market.

Bitcoin is a way for the altcoin to determine its value and from there that's why altcoin totally pegged with the bitcoin caused by altcoin have been using bitcoin as a way to know how much it will worth.
You should read various article on the internet to know more about the correlation between altcoin and bitcoin.
Bitcoin is the history of altcoin. Altcoin generated from forking the bitcoin code.

wajik-tempe

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It's because there are still many markets are selling altcoin with BTC pair instead of crypto fiat (USDT for example), so the altcoins will naturally drops when bitcoin price is dropping. Also bitcoin is the largest and the most famous cryptocurrency right now people must be panic when the price is drop

southerngentuk

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You just need to understand as follows, altcoins are created to steal bitcoin.
And when the bitcoin are stolen we get the altcoins.

FinneysTrueVision

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Bitcoin has been around the longest and is the most trusted cryptocurrency. Fiat and stablecoin trading pairs have been really common for a while now. There are also ETH and BNB trading pairs so you really can't blame bitcoin for altcoins performing badly. Nobody is thanking bitcoin when the price goes up. Altcoins are dropping harder because people have less faith in them. Many of them are also scams. People are realizing NFTs are useless and dogecoin was all hype and no substance. There is good reason why people prefer bitcoin.

cn567

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So I am a newbie and I always had this question in my mind why all altcoins are backed with BTC because at times like these altcoins are the most affected one there are some really great altcoins out there but due to this correction we can see a massive drop in those coins and I don't think it is fair to other coins that because of only one single coin they also see a massive drop.

I am saying again I am just a newbie who is trying to understand these market.

Thank you

Topic: Why altcoins are backed by Bitcoin? - page 2. (Read 267 times)