Why does the price of Bitcoin impact the price my tokens? ( Super easy Math )
I feel that a lot of people (not saying you) do not fully understand why the price of Bitcoin impacts all other coins or tokens when it tanks or pumps. The answer is actually very simple and if you use www.coinmarketcap.com or www.onchainfx.com, it is staring you in the face whenever you look at your coin.
Every other cryptocurrency on the market will have a Satoshi (and most times an ETH) value attached to it along side a dollar value; this satoshi value is worth Y dollars so the coin or token is worth Y dollars.
As an example, as I am writing this EOS is valued at $10.90 (ouch) and is 0.00144562 satoshis.
Bitcoin is currently at $7,557.82 (double ouch) or 1.00000000 satoshi's (1 Bitcoin).
Every token is intrinsically (but not exclusively )linked to Bitcoins price
let's break that down
EOS = 0.00144562 ( $10.90)
Bitcoin = 1.00000000 ( $7,557.82)
Which means ..........
7557.82 * 0.00144562 = 10.9257357 ( approximately 10.90 as the prices from coinmarketcap could are delayed )
So of course if the price of bitcoin drops, the value of 0.00144562 also drops, therefore, the dollar value drops. This then usually starts traders to panic sell their EOS which further impacts the price.
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Excellent post!