Crypto Academy Season Two Week 5: Homework Post for @imagen
Introduction
This week professor @imagen has examined the cryptocurrency market and factors that affects many things in it.
After reading the lecture and doing my research I will now try to complete the homework task.
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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 in simple English terms is when one thing overcomes the other.
This can be seen in our everyday life as people are able to dominate over other people.
And some cryptocurrency are able to dominate over the others.
We say a cryptocurrency has dominated its other when that particularly cryptocurrency has more market capitalization over the global market; that means it has more relevance because in the market than the others.
This is also because it is used more by traders.
I quite remember that before I made an entry into the world of cryptocurrency , bitcoin was the first coin I turned to.
This shows that many beginners who are into the trade of cryptocurrency prefer the bitcoin option before any other cryptocurrency.
You notice how even when the price of btc is falling it does not fall so quickly but it fall rather slowly.
And the cycle at which this coin is mostly determines the cycle or shape the market will be in.
the dominance of Bitcoin
Bitcoin is the number one cryptocurrency according to coin market cap.
This means btc is dominant to the other cryptocurrencies.
This way be due to many reason.
One reason being that the volume of the coin circulating in the market is very high.
A start in bitcoin dominance means that alt coin season dominance begins to decrease and vice versa.
Bitcoin dominance had risen by 73% earlier this year which we all saw in the spike in the price of btc breaking it all time high.
But currently we can see that btc dominance has fallen to 43.03%.
This is due to recent developments around the bitcoin and the falling in the price of the btc price.
Since breaking it's all time high price the price of btc has begun to fall down once again going into the bear cycle.
Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)
Because of volatility in the cryptocurrency market the price of cryptos usually fall very strongly after having a bull cycle.
In April 2021.
Earlier this year we experienced the fall of bitcoin just after it reached and broke it's all time high.
Bitcoin after reaching an all time high price of about 64,800 dollars in just about a week fell very strongly to about 49,000.
The fall affected many currencies like binance coin, dogecoin and also ada.
ADA too was affected in this fall.
The coin had risen to about 1.44 dollars.
And then some days later it make a drop to about 1.09 dollars making a percentage lost of about 55%.
In February 2021.
In February the price of bitcoin fell heavily to about 43,000 dollars shortly after breaking it's all time high of about 58,000 dollars.
This happened shortly after its bullish cycle.
Chain link after enjoying a very successful period fell to about 23.08 dollars after rising to above 36.83 dollars.
What is the Altcoin Season?
Alt coin?
A short term for alternative coin.
In simple English terms alternative means can be used in replace of something.
So an alt coin is a cryptocurrency other than btc.
The altcoin season is a season in which the top 50 alt coins are being bought or traded in more than the bitcoin
This helps in increasing their market capitalization.
When altcoin season starts it means the dominance of btc is gradually decreasing and that of altcoin is increasing.
Give a brief description of at least 2 altcoins that are in the TOP 50.
Ethereum.
Ethereum was founded in the year 2015 by Vitalik Buterin
Many people confuse ethereum to be a cryptocurrency but it is a decentralized block chain which has it's own cryptocurrency.
This cryptocurrency is known as ether.
The current market value of ethereum according to coin market cap is 3.937.12 dollars.
And it has a dominance of 20.27%.
Its ranked at number 2 according to coin market cap in the market ranks.
Doge coin.
A cryptocurrency which started out as joke.
Doge coin is a digital currency which is founded by Billy Markus.
"The meme coin" as most people call it was initially created from the famous lite coin in the year 2013.
Doge coin currently has a market value of 0.5175 dollars according to coin market cap.
The coin has a market dominance of 2.97% and it is ranked at number four according to coin market cap's ranking.
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%)
Many a time, the market have been affected by news relating to the cryptocurrency market.
Sometimes positively and sometimes negatively.
The following are tweets that affected the price of cryptocurrency.
To begin with, a tweet from the CEO of Tesla, Elon Musk the doge father as he is popularly known made a tweet calling himself the doge father in April.
Few moments after making this tweet the price of doge coin saw a significant rise.
It even broke a few records by breaking it's all time highs in that period.
Secondly, Elon musk again tweeted about Tesla his company accepting bitcoin as payment for his famous car module in March.
A few moments after his tweet there was a significant rise in the price of btc
This also affected the market positively.
Finally, there was news about a lawsuit against the two executives of ripple in December 2020.
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After the news broke out the price of XRP fell very strongly from about 0.52 dollars to 0.17 dollars.
This news affected the market negatively.
Describe one of the following Penny cryptocurrencies:
Shiba Inu, Safeemon, or Eclipse
When a cryptocurrency is described as a penny cryptocurrency, it means that the price of the coin is less than a dollar.
This coin mostly have large volumes moving around in the market but are very risky to deal in because they are mostly fraudulent.
The Shiba Inu popularly known as Shib for short was inspired by a dog.
This Shiba inu which had an image of a dog on it caused many people to invest in this particular token.
It was created in the year 2020.
Even though the creator of the Shiba inu is not known he is popularly referred to as Ryoshi.
The current price of the Shiba inu is 0.00001806 dollars according to coin market cap.
It currently has a market dominance of 0.31%.
It is currently ranked at number 28 by coin market cap ranks.
Conclusion
The dominance in the cryptocurrency world is a fascinating thing because this is a factor that decides many things in the market.
As I prepared my homework I have learnt many things too even though it was not an easy task.
All screenshots which have not been cited are from coinmarket cap and twitter.
Thank you.
Hola @rubilu123
Gracias por participar en la Academia Cripto de Steemit.
Tienes que investigar más y mejorar la calidad de tus tareas.