Greetings to Everyone,
Hope we are all fine,

It's my first time to participate in Prof.@imagen class and am so happy to be one of the participant. Thanks to @imagen for bringing up this topic because, it increase my knowledge about cryptocurrencies and I like it. Here is my home work given to me by Prof. @imagen.

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Question 1

Explain in your own words, the concept of Dominance in the world of cryptocurrencies. What is the dominance of Bitcoin at the time of performing your task? (Present at least 1 graph)

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Dominance

Dominance in the world of crypto currencies describe or give details of percentage a crypto has over another in the global capitalization I.e. it market share. The arrival of cryptocurrencies really change the global economy.

Let's break it down, dominance can be define as an act of something having power or influence over another. It may be a group of people, animal or somhing

2019, Bitcoin was presented to the world as an alternative to the physical (or Traditional) money and many people prefer to use cryptocurrencies instead of Traditional curriences. Cryptocurrency is a digital money that can be send to all over the world.

During the arrival of bitcoin, bitcoin dominance was 100% but it started reducing when other cryptocurrency are been created. But the other new crypto market capitalization was low.

But in 2015 when Ethereum was lunched, it was a strong one for bitcoin out of the other cryptocurrency.

Dominance of Bitcoin

Bitcoin have been dominating the cryptographic market since it arrival but the arrival of other coins made its dominance to reduce in the cryptographic market but still leading.

Bitcoin have been in its lowest point since 2018 with the dominance percentage of 50% but since April 2021, I have seen Bitcoin dominance fluctuating.

However, as at when I was doing my homework Bitcoin dominance have dropped below 50% And the current dominance of Bitcoin is 43.0%.

The above screenshot is taking from CoinMarketCap it show the percentage of the total market capitalization (I.e. Dominance) in form of a graph.

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Question 2

Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)

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Bitcoin was lunched on the 9 of January, 2009. It is independent of any other coin but many coin is dependent on Bitcoin expect Ethereum and Ripple coin.

We can see what happened from the view of the chart above during April of this year (2021). The fall was very strong and it put fear in the mind of many investors. Some see the fall as an opportunity to buy and keep before it rise while some we're scared.

The fall of Bitcoin affected some of the coin dependent on Bitcoin like Chilliz CHZ and Cardano ADA. They started decreasing when Bitcoin price decreased.

The one like it, is the one that happen before the year 2021. This one happened in the year 2020. The institutional interest like government make Bitcoin to really rise in December 2020.

Bitcoin started 2020 with the trading price of $7,200. At close on November 23, Bitcoin was trading for $18,353. The continuous institutional interest in Cryptocurrency help the price of Bitcoin to keep increasing. The price of the Bitcoin reach $24, 000 in December 2020, it added an increase to it value with 224% from the start of 2021.

It took Bitcoin less than a month to get to it's previous price and surpass $40,000. But something happened, everything turn around on Jan 8 2021, Cryptocurrency started changing hand at $41,528.

Bitcoin price started reducing, it reduce and get to $30,525 on the third day. (I.e. 11 of January)

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Question 3

What is the Altcoin Season?

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source

Altcoin are Cryptocurrencies that share characteristics with Bitcoin but are not Bitcoin. They are different from Bitcoin in some other ways. It can be described as an alternative to Bitcoin.

Altcoin season is now, because market cap is more than $1 Trillion as the price of Dogecoin and maker increases. Altcoin season can also be now if capital starts flowing away at an accelerated pace from Bitcoin to the alternative coins on the market.

In conclusion, Altcoin season is the measurements of how Bitcoin's market cap as contributed to the total market cap of all crypto asset says Google

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Question 4

Give a brief description of at least 2 altcoins that are in the TOP 50.

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Below is two out of the Top Altcoins

• Litecoin (LTC)
• Ether (ETH)

Ether (ETH)

Ether is a name of Cryptocurrency that operate on Ethereum blockchain. It refers to as the second largest Cryptocurrencies in the world after Bitcoin. So, it is the largest Cryptocurrency in altcoin.

Ethereum is a platform that was first introduce in the year 2013 by programmer Vitalik Buterin and the platform went published in the year 2015. Ether is an independent coin.

Litecoin (LTC)

Lietcoin is lunched by Charlie Lee in the year 2011. It runs an incredible software similar to that of bitcoin. Litecoin is operate very fast and that makes it to still be on the market.

The incredible software really help Litecoin to spead up in it operations. It takes two and the half minutes for miner's to mine Litecoin while it take miner's 10 minutes to mine Bitcoin.

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Question 5

How can relevant news influence the price of cryptocurrencies in a positive or negative way? Name at least 3 examples. (Use screenshots) (Example: SENSO announced a 70% token burn, in a week the price increased more than 100%)

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• Example 1 -

Dodgecoin is a good example of coin that social media really helped, positively. Dodgecoin shot up with the help of social media (Twitter), Especially through Elon Musk.

Screenshot from Twitter

Elon Musk is an investor known by many. He has more than 53million follower on Twitter. Elon musk is one of the investor's that help the rise of Cryptocurrencies, after what he had said that "Dodgecoin could be the future" many people started investing on Dodgecoin which help the price of the coin start growing higher.

Elon Musk also posted to his over 53million followers "Do you want Tesla to accept Dodgecoin" as you can see in the screenshot below.

Screenshot from Twitter

This post alone help the price of Dodgecoin to shot up. The price of Dodgecoin immediately shot up from $0.46 to $0.54, before reducing back to around $0.50.

• Example 2 -

Acceptance of an asset, by Many.

This is when a particular assets is accepted by a good number people. Example is Bitcoin and Ether, this two asset as been accepted by many investors. The use of Bitcoin for many transaction as made it the largest crypto in the whole word and the acceptance of Ether by many users as made it second Cryptocurrency in the whole world.

When an asset is accepted by many it give the asset more dominon over others. The way it can influence positively when it is accepted by others, it can also influence it negatively if it is not accepted by many.

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• Example 3 -

Speculation

Speculation is another thing that can push up or deflate the price of Cryptocurrencies very fast, Especially if the speculation is done by a celebrity e.g Elon Musk.

It can deflate when one of the Cryptocurrencies celebrity speculate that an asset will drop at a particular period of time. The investor that buy Cryptocurrency to hold will quickly sell the particular asset if they see that the seculation is very strong.

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Question 6

Describe one of the following Penny cryptocurrencies:

Shiba Inu, Safeemon, or Eclipse

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I will be writing about safemoon, but before that, I would like to give us a brief and straight definition of Cryptocurrency. Cryptocurrency is a digital currency maintained by decentralized system rather than centralized authority. Crypto is different from our traditional Cryptocurrency.

While Penny Cryptocurrency is aso a digital currency that is not up to $1 or a currency that is trading under $1. It is refers to an alternative investment. Safemoon is categoried in this section of digital currency because is not up to $1.

Safemoon is a new coin which was lunched on March 8, 2021. It is describe as "a community driven, fair launched DeFi Token". Ever since safemoon was lunched on March 8, 2021 it as been gaining alot of attention from the investor's.

Safemoon was valued at $0.00000007 when it was first lunched but now it value as increased. Safemoon current price as at when I was doing my homework is $0.000010041 and it had 1,953,192million holder's.

In Conclusion, I want to appreciate Prof. @imagen once again for tutoring us on this topic, It as really expose me to more about cryptoryptocurrency and to those that will be viewing my post,

Thank you!