- 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 is a term used in different domains in the world. Competition has always been the foundation of the build-up of dominance.
Dominance in the crypto world is where a particular cryptocurrency is holding more of the total market capitalization than other cryptocurrencies on the total market cap.
Dominance is a position Bitcoin has been holding on for the past years, comfortable before the appearance of Ethereum. Ethereum and other altcoin are fast becoming a trend to the dominance of Bitcoin. From the layman position where I have always looked, altcoins prices have always depended on that of Bitcoin price in the market. I learn from this course that research shows that most altcoins are beginning to get their independence. I will likely have to believe that due to the price last week of Bitcoin and Ethereum. I noticed a rise in Ethereum on the 9th of May while Bitcoin was observing a drop.
Screenshot coinmarketcap.com: Rise in Ethereum
Screenshot coinmarketcap.com: Drop in Bitcoin
This just a single day, but you can notice from the trend that lately, Ethereum has more green bars than Bitcoin. Well, this proves that in the years to come, the dominant struggle will not be easy in the crypto world.
BTC dominance started going down in 2018 with the coming of ETH, this is the second largest after Bitcoin. With the upcoming of other altcoins, Bitcoin stands at below 50% of total market capitalization.
Screenshot coinmarketcap.com: Bitcoin Market cap ranging
- Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)
Bitcoin strong fall between the 22 Feb- 28 Feb and 16 Apr - 25 Apr
Early this year we have Bitcoin strong fall between the 22 Feb- 28 Feb and 16 Apr - 25 Apr as you can see from the chart. Moving from ~ $ 57 472 to ~$ 43 185 and from ~ $ 63 541 to ~ $ 47 113.
Tezos affected between the 22 Feb- 28 Feb and 16 Apr - 25Apr
Due to the fall of bitcoin Tezos moving from ~$ 4.707 to ~$ 3.263 and from ~$ 7.656 to ~$ 4.415 respectively.
Litecoin affected between the 22 Feb- 28 Feb and 16 Apr - 25Apr
Due to the fall of bitcoin Litecoin moving from ~$ 228 to ~$ 152 and from ~$ 320 to ~$ 213 respectively.
- What is the Altcoin Season?
The altcoin season is the period where Bitcoin starts to lose its market cap to other cryptocurrencies. This season comes about when altcoins start to do well within a specific period. That means challenging the dominant coin, which is Bitcoin as of now. This period is called the altcoin season. Statistics from the blockchain enter.net website show that we are in an altcoin season from the performance of the top 50 coins in the past 30 days.
Screenshots Blockchain Center()
This cryptocurrency was branded after a dog meme, like a joke. Dogecoin created in 2013 by Jackson Palmer and Billy Marcus. Like any other cryptocurrency, Dogecoin can be bought and sold. Dogecoin has a base code like Litecoin, making the two look like brothers. Dogecoin is hosted on blockchaín like other cryptocurrencies, which are secure and making sure all transactions are stored.
Doge is mine by solving complex algorithms using computers recording them on the blockchains. Side coin is mine by the system called proof of work. This coin has been gain position in the market because of the ease and quickness to the miner.
As altcoin is coming up during this altcoin season, Dogecoin is one to look at giving that they are not limited. New Dogecoins are released daily into the market.
Tezos is a smart contract developed by Arthur Breitman and his wife in 2014
Tezos focuses on eliminat. Tezos is a strong competitor to the Ethereum network at a fast-growing rate in recent times. Tezos took advantage of its time to overtake another blockchain to be the biggest ICOs. Tezos blockchain believes that decentralization needs to be at all levels within the
system. That is in creating blocks, get to a consensus, validating, and broadcasting transactions.
- Market cap
Tezos and Dogecoin are in the range among the top 50 cryptocurrencies challenging the dominance of bitcoin. These two coins have similarities in growth in recent times, having a fast growing market cap.
How can relevant news influence the price of cryptocurrencies in a positive or negative way? Name at least 3 examples. (Use screenshots)
Accepted by users:
In a situation where a good number of users adopt the use of the value of the assets. The price of Bitcoin in recent times has been back by the adoption of many users. The use of cooperation to using Bitcoin for online transactions. This has boosted the dominance of Bitcoin in the past years. the lifespan of a coin can positively affect an asset, long lifespan gains more trust from the media and users.
Screenshot coin lifespan Bitinfocharts
Predictions from analyzing:Due to the volatile nature of cryptocurrency, It has not been easy for the researcher to tell what will happen in the future. This uncertainty has greatly affected the prices of cryptocurrencies especially Bitcoin. The fact analyst keeps predicting that the Bitcoin market is not going to stop any time soon has to hold the price of Bitcoin high. So with the coming of altcoin and the current altcoin season. We should be expecting possible changes in the market trend.
Regulations updates by governments
The fast-growing nature of cryptocurrency in the financial industry is dragging the attention of governments. So many governments are keeping a strong eye on the activities of bitcoin. This is because bitcoin has been easy means for money laundering transactions. Because of the decentralized nature, it holds no restrictions, and most users consider it a legal form of transaction. A good example is the government of China which place a ban on ICO as a means to reduce money laundering. this greatly after the price of bitcoin negatively
- Describe one of the following Penny cryptocurrencies:
SafeMoon was launched in March this year, it being one of the fast-growing new cryptocurrency on the market. SsfeMoon is a cryptocurrency like bitcoin but with it unique difference. SafeMoon rewards it used front ht e-transaction of other users. Selling safe Moon will tax you a 10%, 5% from will be distributed to the others still holding this token.
We all know that cryptocurrencies are highly volatile, SafeMoon is not different. So, thinking how safe SafeMoon is. The reward scheme is my problem on a personal level. The system looks like a Ponzi scheme, given that rewards are based on the percentage amount a buyer pays for the token. On the other side, the redistribution scheme is also very encouraging for other holders to stay on. For you to hold the SafeMoon token, you need to log in to crypto exchange platforms. You have to buy Binance coins which you then swap with SafeMoon
An example of a crypto exchange platform is PancakeSwap. Yoú needs a Trust Wallet to buy BNB which you used to swap to SafeMoon.