Dominance, since the beginning of times someone was always at the top of the pyramid, at the top of the hierarchy, at the top... Dominating all from above, dominating the masses! And in crypto, it's just like that...
BTC's dominance is right now close to 70%, dominating all of the other cryptos, making altcoin hodlers fear and doubt their own investments, but what if I told it's even worse than that! 70% isn't the real dominance of BTC, it's higher than that, at least that is what an analysis by Arcane Research says, and I do agree.
Market dominance is mainly being based on the BTC's market cap vs the entire crypto market cap, but this leaves out one of the most important factors, liquidity... Liquidity is very very important! Why you might ask?
Well, without liquidity one can pump the price of any altcoin 100x or 1000x easily with very low amounts of money, most people don't understand why some coins Pump like crazy... even some STEEM tokens do 1000% in days, that is because of lack of liquidity, one can manipulate the price up or down and suck in some suckers to dump on them. I did this once... No, not in the crypto market, back when I played Guild Wars 2 I had enough gold to manipulate the market in ways that tripled my money in days.
Well, Arcane Research did the research, added liquidity and took out stablecoin's market cap, and the real dominance of BTC isn't 70% but close to 90%! That's the network effect of BTC, and in the next couple of years, I don't see altcoins flipping or gaining that much dominance over BTC.
Altcoins are mostly projects, even though some have amazing projects and tremendous development, they are still just projects, there isn't regulation, there aren't users, some don't even have cashflow, the price increases because someone bought it...Altcoins are still only starting. It will probably take 5-10 years for the altcoin diamonds to shine, we first need better tech, more use-cases, regulation, adoption, etc...
Even STEEM is just a shell of what it can be, tribes are just the first step, the journey is just starting, but at least it's starting... A journey of a thousand miles begins with a single step.
If you want a safe bet, go for BTC, if you want a more risky bet, go for altcoins. Both should be part of a balanced crypto portfolio in my honest opinion, 50/50? 60/40? You choose your risk profile, just know that there are many diamonds in the altcoins that will make tremendous non-speculative gains...
Cointelegraph post about the Issue
Images Free Source - 1, 2,3,4,5,6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27 - Tradingview snapshots too.
Question of the day: Do you have a balanced portfolio divided between BTC and Altcoins? What are the percentages?
Convert your Bitcoin to EUR/USD : Coinbase
Buy all kinds of Cryptocurrency: Binance
Join FreedomEX the first Steem Exchange where you can trade your Steem Tokens!: FreedomEX
Join Steemmonsters, one of the top dapps on blockchain: Stemmonsters
Join DrugWars : DrugWars
