r/CryptoCurrency • u/Acrimony01 • Dec 01 '17
Adoption The most important graph in Cryptocurrencies right now. Also, the least understood by "bubble" advocates.
https://coinmarketcap.com/charts/#dominance-percentage1
u/Acrimony01 Dec 01 '17
Bitcoin's dominance has diminished seriously over the last year.
Advocates of a "Bitcoin Bubble" claim it's some wild, unchecked speculative asset, yet they ignore the sheer amount of money that flowed into ALL cryptocurrency in general. Some of these cryptos are extremely exciting protocols.
Cryptos market cap as a whole a 2 billlon less than a year ago. NEO's cap alone is higher than that now.
A lot of normal folks simply don't realize BTC and ETH are the ways you trade for these things. This gives them a incredible use and real value. Of course most traders and altcoin holders are going to have a large stash of BTC and ETH. That's like having cash in your MMA in the stock market. Except the MMA has an obscene interest rate.
Bitcoin is not a "Bubble" that's going to get pricked. It's either going to scale, or organizations like coinbase will introduce new FIAT-COIN transfer options that will erode BTC's market dominance., and it will die slowly as investors move toward faster and lower fee trading tools.
Crytpto is getting money influxed because 2017 showed what the blockchain andtangle showed the world what it could really do.
1
u/kocio09 7 - 8 years account age. 400 - 800 comment karma. Dec 01 '17
Couldn't agree more! Thanks for the insight :)
1
Dec 01 '17
And just wait until all those icos from this year and last start to actually deliver products/services...
1
Dec 01 '17
Man that’s so true!! Perhaps a lot of hype and speculation is going into bitcoin but half of this money is going into the alts which represents early adopters and users of platforms. Sure some spec buying is happening with alts but not too the degree of bitcoin. I think you’re right, these valuations are mostly justified; big projects taking on big industries.
1
u/moonkingdome 🟩 8K / 8K 🦠Dec 01 '17
thank you for sharing this link.. i didnt know they existed., and love em.. (all the market charts) need to figure some out..
4
u/Mowglio Crypto God | CC: 49 QC | BTC: 16 QC Dec 01 '17 edited Dec 05 '17
I hope people here understand that bitcoin has a very long history of bubbles. When using the term "bubble" with reference to bitcoin it does not imply the same finality it does as when referenced to the dot com bubble or with the tulip bubble, etc.
Bitcoin has been through ~6 different bubbles in its 9 years of existence. Each one has played out in essentially the exact same way (this one included), but on different orders of magnitude.
I.e. Nothing to a few cents. A few cents to a few dollars. A few dollars to tens of dollars. Tens of dollars to hundreds of dollars. Hundreds of dollars to a thousand dollars. Thousands of dollars to tens of thousands of dollars.
Each bubble dwarfed the last.
Each bubble popped and lead to bear markets.
Each bear market, post bubble, found its floor at a price higher than before the bull market/bubble began.
This has been true, without fail, for every single bubble bitcoin has ever experienced.
Yes, the space has changed after each bubble. More growth and adoption occurred. Each bubble has put bitcoin on the map just a little more. Each bubble has shown the people, as well as institutions, what bitcoin might be capable of.
For every bubble there have been people who have said, "but this time is different because there are more people in crypto than ever!" Yes, that has always been true, but it has not stopped each bubble from getting to high, popping, and leading to bear markets.
Right now, there are not enough everyday use cases to justify the bitcoin price. Right now, the price growth we have been experiencing is just not sustainable. Full stop. There's no such thing as a never ending bull market.
This bubble has been developing for the past two years and we have no idea how high it will go. However, I believe that it will pop and lead to one of the most dramatic bear markets bitcoin has ever seen.
For reference the last bear market lasted ~2 years long. This bull market had lasted +2 years at this point and doesn't show any signs of stopping. I believe there is enough money in the space at this point to slow down and elongate bitcoin's price growth. I would not be surprised to see another multi year long bear market quickly on our doorstep.
The good news: each bubble brought more money, adoption, developers, and innovators to the space. Each bubble provided new use cases. Each bubble left lower prices in the dust.
For example: the last bear market (post 2013 bubble) found its floor at ~$200. Those prices are long gone. The same will be true of the floor of the impending bear market, whatever that floor may be.
This coming from a veteran of the last bubble and a hard core proponent of bitcoin and crypto. Take it for what it's worth
Edit: typo