How Can Altcoins Become Less Dependent on Bitcoin's Performance?
Ralph Raymond asks "What are your thoughts on how to make altcoins less dependent on the performance of Bitcoin?"
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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It is impossible because Bitcoin for crypto is like USD for fiat currencies.
Аn overwhelming majority of assets can only be exchanged for Bitcoin, they are directly dependent on the situational Bitcoin price.
The majority of Blockchain projects and alternative digital currencies are in a one-sided dependency relationship with Bitcoin. Especially smaller currencies or starting projects are exposed to the partly enormous effects of Bitcoin performance. This can be attributed to the direct trade between Bitcoin and these currencies.
Just look at the stock market. When we have bear market and large caps are getting hammered (forget about fundamentals) it eventually pulls everything down with it regardless of independence. Usually great fundamentals and non independence pays of in a bull market. That’s where great coins get separated from others. They tend to go up much faster and more then the weak once. And yes, look at IOTA, Steem or EOS. These are great independent cryptos aspecialy in a future bull market. It’s great buy time now!
In 2018 the cryptocurrencies have completed their first decade of existence and now the change within this ecosystem is inevitable. If a lot of theses coins don't find a real world use scenario they are going to be forced the market forces to go extinct.
Adoption is definitely the key. If the coin is used for real life cases, then by the very nature of its use, it would be separated by Bitcoin.
Your example of Ethereum is really perfect in this scenario. Ethereum has it's own ecosystem where it thrives and in fact there are coins that are affected by the price of the Ethereum.
For now the market dominance of BTC is relatively high but this can change in the future. At some level I also feel that the prices of the coins are also affected by the emotions of people. And Bitcoin is pretty much the emotion gauge of the cryptosphere
I think this will be possible as the market as a whole matures and create their own following and use through the successful implementation of their projects and relative adoption. This will create value within their networks which will make it less dependent on Bitcoin for price movements. However, most asseta will remain correlated to Bitcoin as asset class always trens to move in tandem.
I had this very discussion today with a friend, BTC was the very first cryptocurrency ever invented. Therefore to say if the alt coins can survive without the BTc or less dependent on the BTC is almost impossible to me, The bitcoin maximilist are doing everything they can to prevent that. There are coins with superior tech that should have already over come bitcoin but all those early investors are are powerful now and they have a deep emotional attachment to BTC to solely promote and protect it.
It's a very good question, I think you are right that the people use bitcoin for most of altcoin dealings. Hence the price is dependent on it. Some other coins like ripple and Etherium have also created there place in the market as there projects are quite good and they are reliable. But according to me I think bitcoin is most reliable.
I must say that you are very clear with your concepts and you are really inspiring and motivating people who are thinking to invest in crypto. I admire and appreciate your work @louisthomas keep it up and I will be waiting for your next post good luck my friend
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They can die :D Best and only decoupling.
I don't see this to be possible due to the influence of bitcoin marketwise on altcoin.
Altcoins can be less dependent on Bitcoin performance if only they can solve a basic blockchain life problem that is relevant to today business endeavours . But it will take a longer time to achieve such fit because Bitcoin is the dollar of crypto official currency, that is Bitcoin is the official currency of crypto market