Crypto Academy week 13 - Homework post for professor @Imagen by @Sahmie

DOMINANCE

this simply means having power and influence above other. In other words, this could be explained as been Superior, or having supremacy, or Authority or Ascendancy over others.

WHAT IS BITCOIN DOMINANCE

Bitcoin dominance can be said to be the measure of the ratio between Bitcoin's market value and the rest cryptocurrencies in the cryptocurrency market. Which in turns can be said to be how superior is the value of Bitcoin when compared with the rest cryptocurrencies.

Bitcoin has been the world’s largest
cryptocurrency by market valuations (market cap) thereby commands a very large portion of the trading volume in the cryptocurrency market.
For several years, Bitcoin has far been the major cryptocurrency and one of the few that was in existence, therefore, it sustained a dominance that was much closer to 100% than it's become of today. However, this dominance dropped much significantly as new cryptocurrencies (such as Ether, Litecoin, Dogecoin, Bitcoin Cash etc) came into existence. The dominance of Bitcoin was affected as a result of the increased popularity of An Initial Coin Offering (or ICO), which is a method used by teams to raise funds for a project in the cryptocurrency space. This came into existence after the introduction of Ethereum and the ERC-20 token standard.

Bitcoin dominance, which is calculated as Bitcoin value divided by the Total crypto market value, then multiplied by 100, was 42.62% at the time of this article (12:30pm, Tuesday 11th, May 2021).

Where the estimated price for Bitcoin was $1.04 trillion and that of the Crypto currency market was $2.44 trillion.

BITCOIN PRICE INDEX

Working with recent data, there have been times were bitcoin price has had dip in price, the first of such scenario occurred between 2017 and 2018, when the price of bitcoin was hit by a recession in crypto market and it's price dug deep, finding itself at $3.04k in December 2018,

from a year peak of $18.5k in December of 2017.

A second case in such price stumble occurred again in 2020. In July 2019, Bitcoin experienced a price pump up, which made it up to $12.6k,

by March 2020 this pump up in price was accompanied by an equally even dip in its price bringing the price down to $6.6 almost half the price it was 8 months ago.

With bitcoin being the front runner of the crypto currency market, most of the lesser Crypto coins tends to depend on the changes in Bitcoin's valuation. As this creates uncertainty among investors, therefore Bitcoin valuation tends to affects either positively (that's where investors look for alternatives like Ethereum, Litecoin, Dogecoin, Bitcoin Cash etc) or vice versa.

WHAT ARE ALTCOIN SEASON

Altcon, which is the abbreviation for alternative coins, stands for any cryptocurrency other than the front runner Bitcoin. Altcoin season therefore, can be said to be the period in time in which the values of alternative coins rises high against the valuation of Bitcoin. This can occur when investors tend to invest more on alternative coins. Examples of Altcoins includes;

a) DOGECOIN

This is an Altcoin developed in the year 2013 by two software developers who worked for Adobe and IBM named
Billy Markus and Jackson Palmer respectively as an alternative to Bitcoin in the crypto currency market.

b) ETHER

This is an Alternative cryptocurrency, the largest traded among all Altcoins. This like all cryptocurrencies serves as a means of payment in the digital market and its a product of the decentralized open blockchani system called Ethereum.

HOW DOES RELEVANT NEWS AFFECT THE PRICES OF CRYPTOCURRENCIES

Recently, this could be seen in the world of dogecoin where tweets or news from Elon Musk and Mark Cuba increased its price by 20%.

These social media posts and news tends to increase the popularity of these cryptocurrencies, there by attracting more investors or vice versa. Another example was how Bitcoin was worth less than a cent in its first year, but it is over hundreds of thousands in today's market.

The news of Bitcoin halving tends to increase the price of Bitcoin as it means less Bitcoin are in the market, there by saying the supply is lower than the demands.

PENNY CRYPTOCURRENCY

These are said to be alternative cryptocurrencies (or altcon) with a value less than $1 in other words cheap altcoins. Example is Shina Inu.

Shina Inu is a penny cryptocurrency built from the Ethereum system, it's known to be the highest surging penny cryptocurrency among the penny currency market. This penny coin is said to be created to give Dogecoin competition and it has been gathering some attention lately.

Thank you for your time.

@Imagen
@pelon
@preye2
@bright-obias
@steemitblog

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