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Bitcoin is over $10k last I checked. Unless you only bought it the short time Bitcoin peaked at $20k you probably haven't lost that much, unless you sold alread

by tempsy 7y ago

Bitcoin is over $10k last I checked. Unless you only bought it the short time Bitcoin peaked at $20k you probably haven't lost that much, unless you sold already. It's the altcoins that continue to get crushed right now against bitcoin. Many are still hitting all time lows against bitcoin as bitcoin's dominance has increased (officially) to 70% of the total crypto marketcap but probably higher in reality.

hollerith 7y ago
What are your reasons for believing that the real ratio (bitcoin:total crypto) is higher than the official or "nominal" ratio?
- tempsy 7y ago
  A lot of crypto investors will say the same thing. I'm referencing the dominance on CoinMarketCap's website but in reality there's a lot of dead projects with basically no liquidity. CMC doesn't do anything special to filter those projects from the denominator, but if you identified those projects and removed them BTC would probably be at 75-80% or higher.
  - lawn 7y ago
    A slight counterpoint that a lot of crypto investors will point out is that BTC's marketcap is artificially inflated by Tether. Tether has been printing a lot of coins (highly likely without backing) which has gone directly to buying BTC, pushing it higher than other coins trading against fiat. Marketcap is generally a pretty poor metric to use, as it can be gamed in various ways.
    - andirk 7y ago
      Can you explain how Tether can print coins at will but still pay out $1 USD per 1 Tether? If one can cash out, doesn't that mean it's accurately pegged to the buck?
- wickoff 7y ago
  Crypto caps are calculated by multiplying the price by the potentially circulating supply. In most cases there isn't enough liquidity to accommodate the biggest holders, so there isn't much actual circulation happening. If there was enough liquidity to unload this dormant supply, then the actual coin prices would be much lower. Bitcoin doesn't really have this problem - the trading volumes are much higher and there is a healthy OTC market for huge trades.

by tempsy 7y ago

hollerith 7y ago

What are your reasons for believing that the real ratio (bitcoin:total crypto) is higher than the official or "nominal" ratio?

tempsy 7y ago
A lot of crypto investors will say the same thing. I'm referencing the dominance on CoinMarketCap's website but in reality there's a lot of dead projects with basically no liquidity. CMC doesn't do anything special to filter those projects from the denominator, but if you identified those projects and removed them BTC would probably be at 75-80% or higher.
- lawn 7y ago
  A slight counterpoint that a lot of crypto investors will point out is that BTC's marketcap is artificially inflated by Tether. Tether has been printing a lot of coins (highly likely without backing) which has gone directly to buying BTC, pushing it higher than other coins trading against fiat. Marketcap is generally a pretty poor metric to use, as it can be gamed in various ways.
  - andirk 7y ago
    Can you explain how Tether can print coins at will but still pay out $1 USD per 1 Tether? If one can cash out, doesn't that mean it's accurately pegged to the buck?
wickoff 7y ago
Crypto caps are calculated by multiplying the price by the potentially circulating supply. In most cases there isn't enough liquidity to accommodate the biggest holders, so there isn't much actual circulation happening. If there was enough liquidity to unload this dormant supply, then the actual coin prices would be much lower. Bitcoin doesn't really have this problem - the trading volumes are much higher and there is a healthy OTC market for huge trades.