Steemit Crypto Academy Week 5 || Cryptocurrency Market || Posted by Prof @imagen || Homework done by @xkool24

It is my absolute pleasure participating in this week's Lecture and homework task by Prof @imagen on Cryptocurrency Market. I will be attempting all questions as demanded.

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 literally means having authority over something of importance around you or environment, hence influences their course of action or reaction at any given time. This concept is also seen to be same in the world of Cryptocurrency as some of the coins are known to be in dominance position over other coins in existence. In the Cryptocurrency space, Bitcoin is known for its first generational dominance over other altcoins, also given to its market capitalization and share percentage seen over altcoins.

Bitcoin is a brand name that symbolises all cryptocurrencies each time the word Cryptocurrency is mentioned and hence plays a mind dominance. When it was launched in 2009, it had a completely dominance of 100%, but this has been seen to reduce as other altcoins are introduced into the crypto space. The Bitcoin Dominance as at the time of this post is approximately at 42% (42.64 to 42.66%). See screenshots displaying this.

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

For the first fall, we will be looking from Feb 20 to 1st March 2021 where the market was seen to be bearish.
Will be selecting the Bitcoin and Ethereum.

• The Bitcoin was seen to drop from $55,887 to $45,159, hence loosing about $10,728 in less than 10days. That's huge for a coin to drop such a value.
• Ethereum was also seen in same period to drop in value. It's value captured on the 20th February was $1,959 but dropped to $1,417 which represents a $542 within 10days.

See screenshots below

(BITCOIN MARKET PRICE DROP)

(ETHEREUM MARKET PRICE DROP)

SECONDLY, we will be looking at a different scenario where price was seen to be Bearish too. This time we will be looking within the last week of April where prices went really down.
I will be selecting Bitcoin and Polkadot coins.

• Bitcoin was seen to drop from $60,701 to $49,077, hence loosing about $11,000 in less than 10days.
• Polkadot was seen to drop from $42 to $29, hence loosing $13 I. Same period.

Screenshots below to demonstrate this fall in prices

(BITCOIN MARKET PRICE DROP)

(POLKADOT MARKET PRICE DROP)

What is the Altcoin Season?

This is a period where there is a shift in the dominance of the Bitcoins at a given time or period. The Bitcoin tends to loose some of its market share which is seen as dominance in the crypto market. And this loss of some of its dominance is seen to be a plus to the Altcoin build up dominance. Moreso, when there is gain in the market capitalization of the top 50 Altcoins seen in the crypto market, it is seen we are in the Altcoin Season.

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

There are many of these coins but for the purpose of this post, I will briefly explain the Binanace Coin (BNB) and Polkadot coin.

• Binance Coin (BNB)
  This is one of the coins I've admired and always eager to buy in into its coins at any slightest opportunity. I always convert all small coins into BNB when in its exchanged. BINANCE exchange happens to be the largest exchange platform in the world just 2years after launch and BNB happens to be its native coin. With its native coin BNB, users can take advantage of its Transaction discounts, stake on projects with potentials of earning passive incomes.

The native coin BNB token is built on the Ethereum blockchain and uses the ERC-20 smart contracts.
The current price of the BNB as at the time of this post is $593 with market cap of $40 232 494 104.

• Polkadot (DOT)
  This is an enhancement of the several coins seen in recent times. It was designed in such a way to support multiple coins in a protocol. This was one limitation seen in most altcoins given to their method of operating in isolation with little ability to communicate with other coins. Polkadot protocol is seen to be highly secured in interchain computation and transmission. This was a welcomed one given to developer's quest to reach out to wider audience and several different blockchains.
  As at the time of this post, Polkadot is valued at $39 with market capitalization of $29 200 985 872

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%)

1. Statement by Ellon Musk on the 12th May 2021
   Ellon Musk happens to be the CEO of Tesla motors. Yesterday he talked about his suspension of the use of Bitcoin in the purchase of his vehicles for now. Also complained the cost of fossil fuels mining and demanded to know a crypto with less than -1% of Bitcoin energy consumption rate.

Screenshots below on his tweet and effect on Bitcoin price

(ELLON MUSK TWEETS)

(OPENING PRICE OF BITCON ON THE 12TH MAY 2021)

(PRICE OF BITCOIN ON THE 13TH MAY 2021)

Observations: it was seen that Bitcoin lost about $7k worth of value in less than 24hrs

1. The second case is also with Ellon Musk when he announced his acceptance of the Bitcoins sometime early February 2021.

Screenshots below

(NEWS ON ELLON MUSK BITCOIN ACCEPTANCE)

(PRICE CHANGES DUE TO BITCOIN ACCEPTANCE BY ELLON MUSK)

OBSERVATIONS: it was observed within same month the price of Bitcoin jumped from $33k to over $57k.

1. Lastly, for the third scenario here, Ellon Musk was seen asking his over 53million followers on the use and acceptance of Dogecoin. He was coded the Dogefather...

See screenshots below

(ELLON MUSK NEWS ON DOGECOIN)

(Price changes from Ellon Musk's tweets)

It was observed the Dogecoin hit it first high of over $0.60 with this period.

Describe one of the following Penny cryptocurrencies:
Shiba Inu, Safeemon, or Eclipse

THE ECLIPSE
When we classify cryptocurrencies as "penny",.it simply means that their value are infinitesimal in worth. I will be talking about the eclipse (ECP)

From the screenshot above we should be able to see the value of the ECP token. It is quite infinitesimal in value. It is an utility token that runs on the BINANCE smart Contract. This token was designed to enable it engage in features in the eclipse platforms and in the payment for advertisement done in its platform. It has a unique feature that allows handlers of this token to get rewarded for spending it.

When Transaction are made with the Eclipse token, 6% are been taxed on this Transaction and 3% distributed to its token holders while the other 3% are distributed into the BNB and pancakeswap(for liquidity) in a 50:50 ratio.The Eclipse token is seen to be alot safer with its mechanism in place. Developers hold 1% freely with 4% locked up in the dxsale with liquidity pool locked up for 5years. Moreso, unsold tokens are burned and the largest holder of these tokens are with just paltry 1.5%.

Thank you Prof @imagen for my participation in your weeks Lecture and homework Task. The knowledge gained from the Bitcoin Dominance and Atlcoin season cannot be over emphasized given to their capitalization and buy in at every given period.

Written by @xkool24