[Vlog] Let's talk Crypto Gains.... It's all about the Sat-o-shis baby!
'Now, what y'all wanna do?
Wanna be ballers, shot callers, brawlers'
With 'the rise the cryptocurrencies' in recent weeks, it is easy to get carried away and forget the sentimental dominance of Bitcoin in the market. In today's video I discuss the important of factoring in the performance of bitcoin when analysing any gains or losses in the crypto market.
Take home points
- try to analyse the satoshi performance of coin. I.e. who it is doing relative to Bitcoin. It tends to mean more than just looking at the dollar price
- there is a tendency for other cryptos to suffer when bitcoin is super volatile
- other cryptos tend to pump more when bitcoin is 'boring' (stable)
Don't get it twisted, it's still 'Bitcoin vs Everything else'
I always like to say (as of today, January 2018), it is 'Bitcoin versus everything else' when it comes to the markets. Whatever you think of the technical merits of bitcoin, the market sentiment (in my mind is clear). When push comes to shove; Bitcoin trumps everything. I'm saying it will always be that way. Indeed, the next crunch point might be the moment it changes. However when Bitcoin makes a big move (either up or down) most other cryptos tend to wilt. No other coin has managed to decouple itself from Bitcoin.
So my advice is whatever you think of Bitcoin, you need to respect it and understand what it's doing at any given moment in time. Particularly if you're trading or looking to get in or out of a coin.
However as always this isn't financial advice, just observations have made other the years.
yes absolutely @nanzo-scoop, it is a relative game w/BTC or ETH. It is the case now and until more fiat to crypto markets open up. If in a year, steem can be sold on Bittrex for USD or EUR, then there is no need to benchmark it vs BTC or ETH.
Another important topic as I extrapolate on this point is how managers of crypto funds are paid (or should be paid). Let's set aside the management fee and simply talk about their performance fee or "incentive fee."
Before the manager earns performance fees, he/she has to perform above a hurdle rate. The performance of passive hodling of BTC over the period is that hurdle rate.
Traditionally, hurdles rates are the risk free rate, 3% or sometimes 5%.
So again, the performance fees the managers earn through the quarter, or year, are, or should be, calculated on the spread over BTC returns. If you invest in a fund, please pay close attention!
Most coins are mainly traded against Bitcoin, in order to make money on altcoins they have to outperform Bitcoin, if they don't outperform Bitcoin you are just losing Bitcoin, even if your altcoin is going up.
Very true, I don't think many think about that...I made an analysis on Bitcoin that might be helpful too:
"Game Over For Cryptos?"
https://steemit.com/bitcoin/@benkalashnikov/btc-update-analysis
I guess the money just fly there and back between the coins like migratory birds. Here is my idea about the correlation between EHTBTC and BTCUSD supported with charts.
I’d like to see how long bitcoin can hold its position , it’s like bitcoin is acting like a grandfather to the rest of the coins
I am not sure that bitcoin will be the daddy of all cryptos forever. At the moment, many other crypto currencies cannout be bought with fiat, therefor a lot of people use bitcoin and or ethereum as the starting point into their crypto career. Mid term, I am not convinced that bitcoin will keep its number 1 role however. they have to make sure that their capacity are increased and that their transaction costs are significantly reduced. I think that in the end the dominant crypto currency will be the one that allows not only for value storage but also for day-to-day transactions. By the way, I am - as probably a lot of people here - extremely bullish on steem due to the coming smart media tokens. I think companies will love to use these for ICO as the ethereum based coins always remains a second choice token giben that you need ETH to do any transaction. I think therefore that a lot of ICOs will move into onto the steemit blockchain. This will require investors to buy steem first. However, given that most steem is locked away in steem power, the market will become quite tight - and I expect the price to go up alot. However, I would not mind if the price corrects beforehand - because I am still a small minnow and would like to acquire some more steem before this happens!
I don't mind if steem's voyage to the moon waits for me as well. But that will be a very long wait going by my very current power. So at this point let it fly beyond the moon.lol
I know that it feels better if you are richer on paper. But it does not matter if you do not want to sell, what the paper price is today. What matters is the price in the future - and if you can afford to buy more it is actually better if the price is lower today.
Bitcoin is still and will always be the daddy of cryptos lol
I think it'll lose is position of dominance when the focus amongst blockchain enthusiasts shift from a simple "store of value" concept to more utility applications like we're seeing with Ethereum. Literally every other coin can act as a store of value, and many, with much faster txn speeds and cheaper txn costs than bitcoin. You can't say the same about bitcoin acting as a utility token.
My sentiments exactly... Bitcoin as the first proof of the workability of blockchain technology holds that distinct store of value nature because it's the first.
But then, I wonder how it did trump the first ever alt coin? If not perceived useful
Steem will beat it.
I wish steem would beat bitcoin, every content creator would get rich in a day! lol
I think bitcoin will fall.
In the words of luke skywalker its time for the bitcoin to end
I learned to go the opposite of the trend. Buy when others are scared and sell when others are greedy. I dollar cost average, adding to my bitcoin position every week. When Bitcoin has low volatility people tend to forget about it until it blows up lol!
good
Nicely done. Solid points. Thanks for making the vlog :)
You're droppin knowledge as usual my friend. It's all about the BTC.
Yes, but bitcoin will grow strongly again.
yes it will!