The Homework Task Steemit Crypto Academy Week 13 - Homework Post for @imagen

CONCEPT OF DOMINANCE IN CRYPTOCURRENCY

Firstly, what does it mean to be "dominant"? To be dominant simply means, to be in a position or state of ascendancy over objects or group of persons.

Dominance in the world of cryptocurrencies is the measure of how much of the total market cap (capitalization) of cryptocurrencies is made up of. In other words, it is the ratio between the market cap of a particular cryptocurrency to the rest of the cryptocurrency markets.

Bitcoin Dominance Update

#Bitcoin Dominance Update:- Currently dominance is 64.41% And now dominance is trading at very important support level.

Some coins that experienced strong falls
The value of coins are very well affected by happenings in the real life .

Bellow are some instances of these happenings.

Dogecoin

Dogecoin: This coin experienced a sharp decrease of more than 10% in the last week due to the
Interview by Elon
Musk

2)Another coin that experienced a sharp decrease of more than 10% within the past few weeks is the WAN.

WHAT IS ALTCOIN SEASON?

This is a season or period where by money flows into altcoins (alternative coins) more faster than in the dominanting coin (Bitcoin). During the Altcoin season, Bitcoin is likely to lose some percentage in its dominance in the cryptocurrency market to Altcoins.

In other words, the market cap of Bitcoin declines compared to the overall market cap of all other crypto assets on the market. For instance, if 70 percent of the top 50 coins does better than Bitcoin in the last season (90 days), it is said to be an Altcoin season.

  Why does Altcoin season happen? It is almost impossible to tell accurately what causes Altcoin season. However, the generally believed idea is that, after a Bitcoin bullrun; or at least the signs of it, investors tend to hand over some of their BTC to become fully aware of their gains. 

Then, they seem to be purchasing altcoins with the profits made from their sold bitcoin, which will obviously cause the prices of various altcoins to go up.

DESCRIPTION OF 2 ALTCOINS THAT ARE IN THE FIRST 50

ETHEREUM

Founded by Vitalik Buterin and Launched in 2015, Ethereum is known to be an open-source blockchain based on a decentralized software platform used for it's own cryptocurrency, called Ether. It allows Distributed Applications (ĐApps) and Smart contracts to be built and run without any fraudulent activity, downtime and control or interference from any third party.
In 2016, Ethereum was divided into two exclusive blockchains; Ethereum and Ethereum Classic.

The new Ethereum was a birthed from the parent currency to make it more resistant to cyber attacks and hackers. As of May 2021, Ethereum was the second largest virtual currency on the market, with a 4,238.10 United States Dollar (USD) to an Ether, behind only Bitcoin. It is much faster to acquire ether currency compared to bitcoin. (about 14 or 15 seconds to bitcoin's near-uniform 10 minutes), and there are far more ether units in circulation than there is for bitcoin.

LITECOIN

Found by former Google engineer, Charlie Lee in October 2011. Litecoin (LTC) is an early alternative cryptocurrency (altcoin) Litecoin is actually a fork of Bitcoin (BTC). Litecoin is a decentralized network that is distributed amongst its nodes and so is secure and very difficult for hackers to target. It's been called the silver to Bitcoin's gold, and at its height was the 3rd largest cryptocurrency by market cap.

Since it's structure is similar to that of Bitcoin it is been used as a testing ground (test net) to make improvements that were later applied to Bitcoin.

HOW CAN RELEVANT NEWS INFLUENCE THE PRICE OF CRYPTOCURRENCIES IN A POSITVE OR NEGATIVE WAY?

Varities of studies have shown that the media is one of the most ( if not the most) important source of influence on the price of Bitcoin and other cryptocurrencies.

Greater media coverage brings about better understanding of cryptocurrencies and Bitcoin by the general public. Press coverage can bring more people into the light of cryptocurrency .
Positive media coverage of Bitcoin will generally lead to higher prices, while negative price coverage will lead to lower prices.

Never overlook the mass effect caused by certain news in the media. An investor crypto who has found certain information in the media will not hesitate to talk to his peers about it, who will do the same.

@imagen

With the power of social networks, news and informations spreads like wildfire and the price of Bitcoin or altcoins will be impacted. For example: When Elon Musk tweeted "You can now buy a Tesla with bitcoin", the demand for bitcoin went on a sudden increase.

Same incident happened with Dogecoin when Elon Musk tweeted "Dogecoin is the people's crypto"

Thirdly, Elon Musk, in an interview , referred to dogecoin as a" hustle "and there was a sharp decrease in its price

SAFEMOON

Technically, Safemoon is NOT a cryptocurrency, it's actually a DeFi token - as stated in it's website.

DeFi means decentralised finance token. They are very complicated but essentially aim to interrupt the finance world to make people to follow and allow peer-to-peer networks, without needing a bank.

Just like Bitcoin they use a very complex method called blockchain technology. SafeMoon claims it will reward individuals who buy and hold onto the tokens. For those who sell the currency, they will be penalized. Not much amount is known about Safe Moon and as such risk to your investment may be even more higher than usual. Also, because this cryptocurrency firms are not regulated, you won't have any protection if things went wrong.