The Bitcoin in Ascension 🚀 and the ALTCOIN downloading〽... why?
Hello community, hello STEEMIT in general, today I want to talk about something based on a very contextualized topic, without being an expert on the subject, I would like to give my opinion regarding why many of the alternative currencies (steem for example) have gone down so much in price while the mother of cryptomontages, BITCOIN, is going up .
I repeat, I am not an expert but I have something to say about it, after more than three years in the cryptography world I have been able to see some important variations in the prices of the different tokens. So, let's start with the development...
The first thing that we must have clear, before speaking more about it, is that cryptocurrencies in a general way can be classified in two ways:
- Bitcoin: first cryptocurrency created, and from there the others emerged.
- Altcoin: all non-Bitcoin coins, that is, more than 3000 at the present time.
With this a bit clearer, let's continue.
The Bitcoin in Ascension 🚀 and the ALTCOIN downloading〽... why?...
Of course, I can't say that all the Altcoins are decreasing in price as the BTC rises, but at least Hive, to talk about one that surely interests all of us who are on this platform, has dropped considerably in price, or didn't you notice that 1 steem was worth 0.13 a few days ago?. Of course, today 12/11/2020 has gone up a bit in price, I must point out.
But, it has already started to recover, how far will it go?, no idea, but I hope very high. Well, one of the main reasons, at least in my opinion, for the price alterations to go down as the BTC rises is that many people are withdrawing any savings they may have in alternative currencies, or simply changing them to BTC to take advantage of the rise, and make a profit from it.
Later, they could buy back the alternative currencies they had, but in greater quantities since the altcoin dropped in price but their capital increased. If you don't understand what I'm saying, there's nothing better than an example to help you visualize this:
Let's suppose we have 1000 steem, when it was at 0.120 $ and the BTC at 12000. I change my 1000 steem and get $120 in BTC. But it happens that the latter keeps going up and reaches 15000$. Now I don't have 120$ but 150$.
But also steem went down in price and is now at 0.100...It turns out that I would no longer buy 1000 original steem that I had but 1500... Now, shall I explain myself?
With these upward movements of the Bitcoin, the cryptographic environment becomes more speculative, and those who have great economic possibility know that this of many will sell the altcoin to acquire btc is going to occur naturally, so they issue large volumes of purchase of altcoin but at a price much lower, managing to obtain large amounts of these tokens but lowering its value as a result .
I know that talking about these things can be a bit confusing for many, but the reality is that it is necessary to touch on these issues, for those who are entering the space of cryptography, and do not know anything but only know how to write, they may think at some point that this project called steem is in decline, and it is not so, the cryptocurrencie market is very volatile, and part of this reality that we are living is a reflection of their behavior.
This is a particular vision that I share, I would like to know your opinion about it, if you have anything to add, I am fully open to debate, suggestions and contributions.
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The trend is comprehensive. People sell altcoins to buy bitcoin when bitcoin pumps, then sell bitcoin to buy altcoins when the bitcoin market normalizes. It's hard to say for sure, but this is probably why.
I agree. :)
@tipu curate
Upvoted 👌 (Mana: 4/6) Passive income || Compare APR
@tipu curate
Hello friend, it's very true, I also didn't understand at first why this was happening, I thought, the opposite should happen but now I'm more focused on the matter. Let's hope that the steem keeps going up, it's time to recover.
good article, one of the things to keep in mind is that the confidence and the demand of the coin gives its value, if for some reason the market perceives that the coin is in abundance or loses confidence in the market the demand goes down and its value goes down too
Good evening. Yeah, I agree with the first commentator, it is the natural cyclic process that is repeating again and again. We should just research how this cycle is working and try to earn some money on this. I have a few bitcoin on my wallet after playing on fairspin.io and it is rather interesting to spectate the changing of its course. It is changing more aggressively than the course of traditional currencies and even a day can change the course very radical. In my opinion, it is very scary to invest a huge sum in such a currency because of its non-stability.