[Vlog] Let's talk Crypto Gains.... It's all about the Sat-o-shis baby!

in vlog •  2 years ago 


'Now, what y'all wanna do?
Wanna be ballers, shot callers, brawlers'

With 'the rise the cryptocurrencies' in recent weeks, it is easy to get carried away and forget the sentimental dominance of Bitcoin in the market. In today's video I discuss the important of factoring in the performance of bitcoin when analysing any gains or losses in the crypto market.

Take home points

  • try to analyse the satoshi performance of coin. I.e. who it is doing relative to Bitcoin. It tends to mean more than just looking at the dollar price
  • there is a tendency for other cryptos to suffer when bitcoin is super volatile
  • other cryptos tend to pump more when bitcoin is 'boring' (stable)

Don't get it twisted, it's still 'Bitcoin vs Everything else'

I always like to say (as of today, January 2018), it is 'Bitcoin versus everything else' when it comes to the markets. Whatever you think of the technical merits of bitcoin, the market sentiment (in my mind is clear). When push comes to shove; Bitcoin trumps everything. I'm saying it will always be that way. Indeed, the next crunch point might be the moment it changes. However when Bitcoin makes a big move (either up or down) most other cryptos tend to wilt. No other coin has managed to decouple itself from Bitcoin.

So my advice is whatever you think of Bitcoin, you need to respect it and understand what it's doing at any given moment in time. Particularly if you're trading or looking to get in or out of a coin.

However as always this isn't financial advice, just observations have made other the years.

What do you think? Is Bitcoin still the daddy of the cryptos? Will this year be the 'the year' when things change? Or do all roads lead to trying to acquire as much BTC as possible?

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yes absolutely @nanzo-scoop, it is a relative game w/BTC or ETH. It is the case now and until more fiat to crypto markets open up. If in a year, steem can be sold on Bittrex for USD or EUR, then there is no need to benchmark it vs BTC or ETH.

Another important topic as I extrapolate on this point is how managers of crypto funds are paid (or should be paid). Let's set aside the management fee and simply talk about their performance fee or "incentive fee."

Before the manager earns performance fees, he/she has to perform above a hurdle rate. The performance of passive hodling of BTC over the period is that hurdle rate.

Traditionally, hurdles rates are the risk free rate, 3% or sometimes 5%.

So again, the performance fees the managers earn through the quarter, or year, are, or should be, calculated on the spread over BTC returns. If you invest in a fund, please pay close attention!

Most coins are mainly traded against Bitcoin, in order to make money on altcoins they have to outperform Bitcoin, if they don't outperform Bitcoin you are just losing Bitcoin, even if your altcoin is going up.

Very true, I don't think many think about that...I made an analysis on Bitcoin that might be helpful too:

"Game Over For Cryptos?"
https://steemit.com/bitcoin/@benkalashnikov/btc-update-analysis

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  ·  2 years ago (edited)

I guess the money just fly there and back between the coins like migratory birds. Here is my idea about the correlation between EHTBTC and BTCUSD supported with charts.

I’d like to see how long bitcoin can hold its position , it’s like bitcoin is acting like a grandfather to the rest of the coins

I am not sure that bitcoin will be the daddy of all cryptos forever. At the moment, many other crypto currencies cannout be bought with fiat, therefor a lot of people use bitcoin and or ethereum as the starting point into their crypto career. Mid term, I am not convinced that bitcoin will keep its number 1 role however. they have to make sure that their capacity are increased and that their transaction costs are significantly reduced. I think that in the end the dominant crypto currency will be the one that allows not only for value storage but also for day-to-day transactions. By the way, I am - as probably a lot of people here - extremely bullish on steem due to the coming smart media tokens. I think companies will love to use these for ICO as the ethereum based coins always remains a second choice token giben that you need ETH to do any transaction. I think therefore that a lot of ICOs will move into onto the steemit blockchain. This will require investors to buy steem first. However, given that most steem is locked away in steem power, the market will become quite tight - and I expect the price to go up alot. However, I would not mind if the price corrects beforehand - because I am still a small minnow and would like to acquire some more steem before this happens!

I don't mind if steem's voyage to the moon waits for me as well. But that will be a very long wait going by my very current power. So at this point let it fly beyond the moon.lol

I know that it feels better if you are richer on paper. But it does not matter if you do not want to sell, what the paper price is today. What matters is the price in the future - and if you can afford to buy more it is actually better if the price is lower today.

Bitcoin is still and will always be the daddy of cryptos lol

I think it'll lose is position of dominance when the focus amongst blockchain enthusiasts shift from a simple "store of value" concept to more utility applications like we're seeing with Ethereum. Literally every other coin can act as a store of value, and many, with much faster txn speeds and cheaper txn costs than bitcoin. You can't say the same about bitcoin acting as a utility token.

My sentiments exactly... Bitcoin as the first proof of the workability of blockchain technology holds that distinct store of value nature because it's the first.

But then, I wonder how it did trump the first ever alt coin? If not perceived useful

Steem will beat it.

I wish steem would beat bitcoin, every content creator would get rich in a day! lol

I think bitcoin will fall.

In the words of luke skywalker its time for the bitcoin to end

I learned to go the opposite of the trend. Buy when others are scared and sell when others are greedy. I dollar cost average, adding to my bitcoin position every week. When Bitcoin has low volatility people tend to forget about it until it blows up lol!

good

Nicely done. Solid points. Thanks for making the vlog :)

You're droppin knowledge as usual my friend. It's all about the BTC.
1474872385046.jpg

Yes, but bitcoin will grow strongly again.

yes it will!

I think steem is about to gain and the others are about to lose. lol

I am a HODL investor. I get bitcoin (however I earn it online) and I almost forget that I own them. That's the strategy until 2022. Then I'll look at the value of what I hold and maybe cash out 20-50%. But I promised myself, I would work hard to gain an online income in several endeavors. Use that online income to buy Satoshis (because most of us can't buy whole bitcoin now) and wait it out. It's been going very well so far. My investment is up 52% a month since I began. 52% a MONTH! Crazy!

Congratulations on that, but be careful! 52% monthly can't last forever. Diversification is a key to success!

In terms of media, Bitcoin is daddy. One of our national radio stations in Canada mentions Bitcoin movement after DOW Jones. Many people believe it's king and belief creates reality.

Beliefs change.

great information

Bitcoin is still the daddy for a little while longer, but quite a few coins are coming for that top spot. I'm not sure what coin will surpass BTC first (EOS,ETH,RIPPLE?) but that time is most definitely coming in the next year or two.

Really great article I made a good choice my dear friend

Here you are again.
Yeah yeah you got a point!

I am all into NEO!
Wanted to buy when it was close to 80 and then I forgot. Now it’s at 17o
#justsaying
Steem is fighting with SBD! Kind of funny.
Who will win?

It's all about that BTC at the end of the day :)

thanks, your post! have a nice day.

BTC will be top dog for another year or two. It's the high risk smaller coins that will appreciate after.

BTC will always be the father of all, except for some projects that were only born to eliminate or make the most difficult path to Bitcoin.

Whenever I buy coins and make profits, I see the percentage in satoshis and not in dollars because the reality is that I want to go up are my satoshis ;)

Hah, very nice and lovely, @nanzo-scoop!! Thanks for great content. Agree that BTC is still daddy. I guess the most important question now, is how long will the correction last. Here are my thoughts about the corrective patterns. Traders and crypto enthusiast are very welcome to support the discussion!

Good luck and thanks!

Very informative and out side the box thinking . Just followed. I like following people who challenge my thinking.

Great points. This is why I have faith in Steem and Ethereum because they are usefull and utilities. Once the masses understand this Steem, Ethereum, and Bitcoin will dominate the future long terms.

BTC controle the markets when it rise other coins rise when it decline other coins decline too

They may rise in dollar value (courtesy of BTC) however they tend to decline in BTC value.

This most recent rise, they've struggled to match their BTC highs of June/ July of last year.

The major problem in this whole crypto market is how you enter and exit with fiat even if you dont want bitcoin litcoin etc. You still have to get it to exchange for the ALT coin that you want.crypto has to be in a free market for it to survive longterm.If this does not change bitcoin and coinbase are the dominos that will crash everythink . we have a dex but we need one with fiat gateway .we have to rise up against bitcoin before its ruins everything still debating over 1mb blocks when they have 220 billion market cap there pissing on everybodys back and telling them its raining

Hmmmm.... That's some observation there

Bitcoin is and will always be the daddy.... Thanks @nanzo-scoop for the enlightening vlog

This is essential. A lot of people (mostly newbs) merely look at dollar valuation. While they're trading against bitcoin and essentially losing money, yet they have the illusion they're making money.

For me bitcoin is still the way to go and my main goal for this year, even though alts will play an important role, is still to aquire as much bitcoin as possible.

There are definitely many factors to look at for alt coins, especially if one is affected by Bitcoin price, but also the more Ethereum based coins as well.
But you can usually watch coins for a week and tell with some, what way the price will move based on it's chart movement + social media blogs etc and more.
@nanzo-scoop

I guess that market dominance comes partly from the fact that in the general public's mind Cryptocurrency == Bitcoin.

Quality video man. Interested to hear more of your opinions and blog posts as watching your youtube videos. You've got yourself a new subscriber!!

very good post dear thanks for sharing

@nanzo-scoop am so impressed about ur post am following u up In order to be intouch, i mentioned u in my blog post of today titled survival $hope.thanks for all ur doing for steemit in Africa, feel free to check out my post when u have time.

Everybody plays in usd i play in Sat-o-shis ;)

Hey Mr. Scoop. Been hoping I could get your thoughts on my recent Marx, Machiavelli, and Game of Power post. Please!

https://steemit.com/bitcoin/@cryptocannon/marx-machiavelli-and-the-game-of-power-pt-2

Excellent video sir thanks for sharing some great thing loved to know some interesting things from you :)

@nanzo-scoop - 'Bitcoin versus everything else' is something that's been there right from the beginning, but it is only now that you have so many alcoins. THe tide might just start shifting soon, especially when you realise that the market capital of bitcoin is less than half of what it was 5 months ago. However bitcoin is still the most widely used coin for buying other coins and till say ethereum or neo get as much mass adoption in exchanges as a trading pair, the dominance of bitcoin will probably cointinue

Bitcoin will be always de daddy of the cryptos, because it was de first one. i think it will be the main cryptocurrency for a few more years, although in the future there will be better options (like IOTA).

Yeah, Bitcoin BTC is still the daddy of crypto. With the development of the lightning network and it's super low fees and fast confirmations, many alt coin currencies will not compete and fade away. BTC will become even more dominant in 2018. Monero will also do well and the authorities will hate it!

Talk please, we are listening ;)

thanks for info

Truly and indeed bitcoin is the first of all cryptocurrencies and it will continue to remain so. it is the father of many nations other cryptocurrencies.
Sometimes, I liken bitcoin to the first educated man with a PhD in a family. He's well celebrated and honoured because he's the first. He portrays himself as the king with a shoulder pad as high as 3 ft when walking on the street. Meanwhile, there are other promising members of the family that have bachelors degree or are still on their way to getting that PhD, but attention is not on them.

I think BCH and ETH are decoupling, and maybe dash,steem and Eos will too this year. They all have their own trajectories long term. Like the highlander says there can be only one.

I think Bitcoin is still a dominant crypto currency up to now but it won't last for long. my observation is that bitcoin has a tendency of reaching to the climax yet other cryptos are just growing at a higher rate. What i fail to understand is why are these other small cryptos seems being dependent to bitcoin fluctuations.

You are very nice and beautiful mane brothers.
I want be friends with you

Yes, going by the market cap. But its importance is waning. While Bitcoin is being increasingly treated as digital gold, many other coins are finding real world applications. Those will, and will have to increase, in order for blockchain technology to redeem its promises.

you are definitely correct great value. Bitcoin still the daddy of crypto, because its not going anywhere and for me I will get as much as I can, its gonna make it this year, you will have some downfalls, but honestly if you stick in the game we all gonna make it.

I'm still trying to get my head around all the crypto stuff. But one thing is for sure - wherever I turn, cryptocurrency is there :)). So I'm assuming in 10-20 years, we'll almost completely transition to crypto. Thanks for the advice regarding 'Bitcoin versus everything else'. Good to know.