I'm new to Cryptocurrency, but have been trading for many, many years. It's strange to me to understand more of the technical chart conversation than I do the underlying security, which is Bitcoin in this case.
It seems that Bitcoin is the legacy or standard flavor in the cryptocurrency world, much like the dollar is in traditional currency. But there seems to be more and more players everyday. I just saw a post advertising a new crypto for porn...I guess it's so porn lovers can buy and trade without shame? I dunno.
However, I'd like to know those of you with more expertise if you think that the deluge of new "coin" in the market dilutes from Bitcoin's value or strengthens it? Normally, more players in a market dilutes value (supply and demand forces), but in a crazy world where new coin can be created for any given reason (like porn), it seems the crazier it gets, the stronger a long lived, well established coin like Bitcoin will get.
Admittedly, I don't have enough expertise to make a confident judgement on that yet, but if anyone has thoughts, I'd appreciate hearing them. Thanks!
From what I have seen in my last 5 to 6 years of cryptomining is nice new shinny coins help to boot BTC, ETH and LTC as outside investors have to use these cryptocurrencies to turn their fiat money into a cryptocurrency they can then transfer to an exchange to trade for the new shinny coin. The more attractive a new coin is, the more new money it brings into the crypto universe, the higher the top base crypto coins go.
A good example is the porn coin you heard about. That coin is called Verge or XVG, it is actually not an exclusive porn coin, it is actually what is known as a private coin that uses a technology called wraith protocol to make it to where it can not me traced, making it a private coin. This coin was actually started as a hobby in a guys basement which it later gained popularity with its promise of the wraith protocol and after a few failed attempts by the XVG devs to make XVG relevant they finally brokered a nice win/win with the recent partnership with PornHub (aka the Netflix of the porn world).
So to make a long story short,(as I plan to better explain all this in an upcoming video), now those that never indulged in paid porn content because of fear or embarrassment of it being linked to them via credit card recipients can now do so anonymously but only after they inject their most welcomed fiat money into the crypto universe by buying BTC, ETH or LTC in order to trade for XVG as most of the bigger exchange's like CoinBase will only allow you to buy these three with fiat money.(You could aslo use Bitcoin Cash but those other three are the main three used). At this point the rules of supply and demand come into play making the cryptos I mentioned more sought out, and in demand, and as such; helps to raise their price.
Sorry if this reply was too long as I tried to make it as short as possible without becoming too confusing. Hope this answers your question. Happy mining/investing.
That's a fan-damn-tastic reply...thanks! Admittedly, I'm catching about 70% of what you're saying, but I'm learning, and that's the important thing. I'll be following and looking forward to your future posts!
If you get board, check out the two videos I posted aimed at newbies thinking of getting into the crypto game. I think you will find some good info in them. Most newbies dont know that there are two different crypto types. You have your coins and you also have your tokens. Coins are simple currency where as tokens can be compared to owning stock in a company.