Crypto Academy Week 13 - Homework Post for @imagen
Hello Professor @imagen, I'm once again grateful for the opportunity to learn this much from you. Would head straight to my homework post.
- 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)
Dominance is a state of supremacy above other factors or contenders in a particular space. This supremacy is in relation to how much a person, an object or an asset occupies a particular space which is shared by other persons, objects or assets.
In the world of cryptocurrencies, dominance is the highest percentage of market capitalization possessed by a cryptocurrency in the global market capitalization. Let's say the the global market cap is $100 billion and a cryptocurrency possesses $55 billion of market cap, the cryptocurrency has a 55% of the global market cap which shows how dominant it is. There can be cases where of the $100 billion market cap, three cryptocurrencies have a significant global market cap percentage of 40, 20 and 18 respectively and the others combining to be 22. The cryptocurrency with the highest percentage of 40 is the one with dominance.
Bitcion is the cryptocurrency with dominance over the global market cap. It being the first decentralized cryptocurrency, it initially had 100% dominance in 2009. Currently it has a dominance of 41.8% which keeps rising slightly and falling. This is because of how competitive the other cryptocurrencies are to attain dominance in the global market.
- Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)
Bitcoin's has an effect on other currencies. It's dominance is one of the reasons, when bitcoin rises most coins follow suit and when it dips other currencies also follow suit. Below are two times where the market had a strong fall.
- Just today(May 13) Bitcoin started dipping. You can view this from the chart below.
You can view from the images below how most of the currencies were affected.
- Another instance is the period between 13th and 25th April. You can view this in the chart below.
Bitcoin price between 13th and 25th April
Steem price 13th and 25th April
Ethereum price between 13th and 25th April
Binance price between 13th and 25th April
From the price list you can tell the other currencies were affected by the fall in price of Bitcoin.
- What is the Altcoin Season?
Altcoins are all coins other than Bitcoin. The altcoin season is a 90 days period where 75% of the top 50 altcoins have better performance as compared to Bitcoin. This usually happens when there's a decline in the dominance of Bitcoin and in turn there's increases in the market cap of altcoins.
With the decline in dominance of Bitcoin we're currently in an altcoin season. The graph above also shows that more than 75% of the top altcoins are performing better than Bitcoin. One reason is that most investors have seen potentials in altcoins and so there's an increase in their purchase which has lead to the decrease in dominance of Bitcoin.
- Give a brief description of at least 2 altcoins that are in the TOP 50.
Ethereum
Etheruem is the second dominant cryptocurrency. It is a decentralized blockchain that executes smart contracts and provides a platform for other cryptocurrencies. Vitalik Buterin is actually the one who authored the white paper of Ethereum in 2013 before he met with 7 other people on the 7th of June 2014 in Zug, Switzerland. These eight total are the co-founders of Ethereum. Ethereum has a market cap of $435,911,049,255 which shows about 19% dominance. Its current price currently is $3,742.61 . With the volatility of cryptocurrencies it's price would probably be different within the next minute.
Dogecoin
The price of Dogecoin is $0.4231 24 . It is the third cryptocurrency when rated by performance in this current altcoin season. It has a trading volume of $15,199,327,480. It is an open source cryptocurrency created by Billy Markus and Jackson Palmer. The name Doge came about is a funny way. This coin has got a lot of influences because of tweets made by the CEO of Tesla Elon Musk.
- 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%)
There are many factors that influence the rise and fall of cryptocurrencies. The media is one powerful tool used to do such work. Many traders are on the lookout for important information to make decisions for good and profitable trades. As such if there is news concerning a cryptocurrency it could either lead to an increase in purchase or increase in selling of the cryptocurrency.
- Like I said earlier Elon Musk, the CEO of Tesla has been influencing the purchase of Dogecoin. On the 28th of April 2021 he posted a tweet where he said "The Dogefather"
That same day Dogecoin was expected to moon which it did for a couple of days as you can see in the chart below.
- Another instance is where Elon Musk tweeted you can buy Tesla with Bitcoin.
This also caused a rise in the price of Bitcoin when it was suffering from a dip. You can view this in the chart below.
- Another popular news that caused an influence on a cryptocurrency is a tweet by former president Donald Trump. This news caused a fall in price of bitcoin and other currencies. This what he tweeted on the 11th of July 2019. "I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value are highly volatile and based on thin air. Unrelated Crypto Assets can facilitate unlawful behaviour, including drug trade and other illegal activity.."
The chart below shows how this news caused an impact on Bitcoin which in turn affected the other currencies.
- Describe one of the following Penny cryptocurrencies:
Shiba Inu, Safeemon, or Eclipse
Eclipse
Eclipse is a token created on Binance smart chain. There's no information about the founders of Eclipse. It's aim is to develop utility platforms for the BSC token market for which the Eclipse tokens would be used for the purchase of the features on the platforms. It has a market cap of $54,070,988 with a current price of $0.00000006. Eclipse has a total of 170,276 holders.
Eclipse is safe and secured. This is because its liquidity pool is locked for 5 years. It also rewards holders for each transaction by sending back half of the 6% fees taxed.
Eclipse is available on PancakeSwap. To purchase Eclipse tokens you must first hold binance coin in your trust wallet. Visit PancakeSwap, connect your trust wallet and then swap BNB for Eclipse.
Conclusion
Factors that cause the rise and fall in prices of cryptocurrencies like dominance and news play an important role in trading. If you want to make good decisions to earn a lot of profits with trades you need to make use of the effects of dominance and news. I'm thankful and once again grateful for the opportunity to learn from you Sir @imagen.
Hola @danielo109
Gracias por participar en la Academia Cripto de Steemit.
Obsevacion: se deben citar las fuentes de donde obtuvistes los graficos e imagenes.
Thank you very much sir @imagen. Would make sure to cite where I take the screenshots from next time