Introduction to irrational Bitcoin dominance
It's no surprise that there are many out there who heard that Bitcoin is quite literally the shit and still think so. It happened back in the early days when BTC was going spreading in the media like wild fire. Investors flocked to Bitcoin like flesh flies bubbling up its value towards then end of 2017. then came the crash. And it's been going like this for a while now; an escapade of highs and lows like a roller coaster ride.
But is Bitcoin really worth what it is worth? Just because a coin is the first coin to come out doesn't make it the best surely? Let's be honest with ourselves here. There are tons of coins out there that have tons more advantages than our old friend BTC from transaction speeds, lack of privacy and not to mention its inability to be further developed.
The only thing that is assisting it retain its value is its name, which is like a Brand more than anything else, and a bunch of gamblers who buy hoping that the asset will be pumped by some whales so they can make a quick few hundred. That's not trading, that's gambling.
Why Bitcoin dominance is a bad thing
Unprofitable to mine
Bitcoin is unprofitable to mine anymore due to the fact that its algorithm is getting harder while the cost of energy remaining the same. Let's be honest here, the theory behind BTC and mining was revolutionary, but we must now come to terms that a percentage of Bitcoin may never be mined at all.
Unreliable store of value
Bitcoin dominance is a bad thing because it is an unreliable store of value unlike USDT and other stable coins and it's not going to get any better due to its limitations by design.
Affects coins which are better
The other obvious reason why BTC dominance is negative is because when the price of BTC drops, the value of other great coins drops as well. Coins which are really making a difference on the Fintech landscape. Take for example Basic Attention Token, Etheruem, Tezos, Ripple and EOS to name just a few. Amazing projects and work going on there that it makes you wonder how Bitcoin can still be at the top position. It's not fair nor rational that such amazing projects should descend with ever dip Bitcoin takes.
Bitcoin dominance decreasing slowly but surely
If you look at the chart below, you can see Bitcoin dominance has been decreasing slowly but gradually. This usually means that people are more in favor of alt coins. That's positive for projects of value.
How to decrease Bitcoin dominance?
Trade stable coin pairs
If you must trade Bitcoin, do it against the USDT, DAI or some other stable coin. This way, other coins will not be affected by BTC price dips.
Dump your Bitcoin
Stop gambling. Dump your Bitcoin and invest in coins that have a future such as BAT, Etheruem, Tezos, XRP, EOS et cetera. There are real companies behind these projects and they are active in pursuing their objectives.
Not investment advice
Keep in mind, this is not investment advice but simply a reflection of my own personal opinion. Do your own research before making any kind of trading decision on the markets. I will not be held responsible nor liable for the actions you take on your trading accounts.
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