Today I was looking at Twitter and couldn't believe when I read what comes next:
"The only way to stop the entire market from being manipulated is to unhinge Alts from bitcoin. The pairings need to be in fiat. The whales can control bitcoin and thus control the entire ebb and flow of the market. When bitcoin drops in USD any alt paired to bitcoin will also drop on USD. Thus people freak out... since they don't understand the dynamics behind the pairing they dump their alts at a lower satoshi price. Which becomes a double negative for the alt"
First of all I must say that in no way I'm not trying to ridicule whomever wrote this text or anyone who might feel there is some truth in it. I just that I felt compelled to bring up why this is so wrong after checking out on the same platform how many people seem to agree with this.
I want to address a couple of missconceptions here that lead to a failed conclusion. "The whales can control bitcoin" is a very popular myth and there are two main reasons why people believe this even when it's not truth. By checking the blockchain history you can see how a few publick keys/addresses seem to handle the biggest amount of bitcoin in circulation. However, people seems to forget that most of these addresses belong to the biggest exchanges in volume, so actually these bitcoin don't belong to just a handful of people but to the millions of users of those exchanges. And of course, there are some "whales" in this world but we also have some very rich people in fiat that have much more money than the rest of us. But this"whales" are not moving their bitcoin around, if they had, they wouldn't be "whales" anymore. They "hodl".
Then we have the second missconception I was talking around. "Thus people freak out... since they don't understand the dynamics behind the pairing they dump their alts at a lower satoshi price". Well, of course there are people who do this, we can't deny that. But I don't think you can say that most of altcoins investors act this way. Once you use your BTC to buy some altcoin for the first time you must know why you do it. Is it to gain more BTC or are you interested in buying the altcoin because you think it will help you earn more fiat currency than simply holding your BTC?
If you belong to the first group then you obviously always look at the BTC price, which lives you out of that group of people. If you belong to the second group then, even when you probably look at the USD price, by now you must know the dynamics of this market and understand that if bitcoin's USD price falls, your alt's USD price most probably will fall too and all you have to do is wait for it to go up again. If you don't know that, then you're a victim of your own ignorance.
We must not adapt the market to your ignorance, we must try to educate you so you don't hurt your own pockets (and ours either).
Finally, I must address directly this text's conclusive point. "The pairings need to be in fiat". This misses the whole point of what cryptocurrencies were created for, and basically says "we can't let whales manipulate the market, we should just let the FED do it".
What do you think?
Whales can speculate if they form some kind of alliance but the real reason why prices are moving up or down is the information investors receive.
for example:
I just read that China activated it great firewall and Chinese IP addresses will not longer be able to access cryptocurrency websites such as bittrex coinbase bitfinex etc.
This surely hit and other related news as well.
It is quite reasonable to suspect governments and financial institutions that they are also manipulating with prices by distributing powerful announcements to drive the prices down or up depending on the vector of the news.
What if BTC price will be pushed down to 5K or 3K and then JP Morgan will say that we have concluded that there are no reasons to ban BTC any more and we will invest 5 Billion in it.?
Is buffett also playing?
The fact that cryptos can not be erased can be argumented by many ways. Are the rich trying to save the world or are they trying to save their asses, that is the question.
I get the fact that most experienced crypto investors prefer the BTC price pairing, however for the newbies this is extremely confusing. I'm not new to capital markets but my brain is completely wired to think of price in terms of USD. It's what ever other asset I own is priced in and the fact my crypto portfolio has to play by its own rules makes it even that much more difficult to adopt. I see an edge for those who use BTC price pairing but I don't think USD price pairing should be excluded.
I agree to this, to make the transactions transparent for me I created a large excel template to calculate everything to $ and from there to € stupid but need it for tax anyway. It is even more complex if you trade some tokens against BTC, ETH and BNB when being on Binance. I do not say it would be better, at least direct pair to fiat would be easier.
https://cresocoin.com/?p=23120
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Go scam people somewhere else
Good to know
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I am BTC fan but everything need to have fiat pair. If you believe in a free market than you must have a choice which currencies you wanna use to buy things. Short term this is not good for BTC but BTC will always be there and buying alts with BTC should be only one of use cases.
''Everything need'', ''must have'', and ''should be'': those are not what defines a ''free market''. Not arbitrarily restricting free exchanges of red rocks for blue waterdrops is not the same as making this specific market an obligatorily available one.
Exactly opposite. Free market must and need to have freedom and if somebody wants to buy alts with fiat then this option is necessary...
https://www.swiftdemand.com/?referred_by=fazenda
https://cresocoin.com/?p=23120
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A topical post and one that underlines the chaotic nature of the market presently.
When people call for pairings to be made against fiat, I think they just want a pairing that is made against something that is not prone to such volatility.
They’re sick of their alt coin, that is a strong, stable 3rd gen product with a healthy future being dragged through the trash every time BTC gets dumped.
The time has come for a stablecoin to come to the fore, either DGD or DAI. Bitcoin has been used and abused, but until something else steps forward, we’re stuck with it and it’s volitility, and like a runaway dog dragging its toddler behind it is causing chaos, fear and uncertainty for the novice investors that have been pulled in with all of the hyperbole.
BTC needs to correct and settle down to its true value. ‘Traders’ need to understand the basics of trading, investors need to understand the long game and believe in their product and everyone just needs to calm down a little bit. It’s going to get worse before it gets better, but isn’t it this volitiily that has drawn us all in?
Exactly. I understand that people sometimes need a stable reference. But just as you said, if it wasn't for volatility most people wouldn't have bought BTC or any other crypto to start. IMO we should all relax a bit and enjoy the ride, with bumps and all
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Great post. Thanks for clarifying these important misconceptions.
Kindly let us know what do you think is happening that is causing the current crypto currency market crash.
What are the reasons, if it’s not the whales? Then what is it that’s causing the market to behave the way it is behaving right now?
I think the market crash is based on the chinnese new year. When there are holidays people are more likely to cash out inorder to spend on gifts and celebration. This is relavent because most crypto is held in asia and if they sell there is bound to an impact in the market.
Why I think this is the case is simply because if you log on to http://fiatleak.com its a website that tracks new money coming into crypto you'll find its mostly usd are coming in.
I think the crypto will stabalise after the holidays in Asia and we'll see more different currencies coming in the space.
I think so too. I ll have a look at that website too. thanks for clarifying things.
Ive seen this theory that the Chinese New Year is the reason for the lack of other fiat currencies entering the pool, could it also be that those are the Govts that have spoken out about legislation and banning? Then there still may not be the injection needed from the Asian countries post Chinese NY? Or what do you think?
Interesting ... I didn't know about fiatleak.com . I ll check it out.
Nice article. Concept of blockchain and cryptocurrencies is very complicated. Most of the people including myself got in to crypto space to get rich quickly but had no idea what bTC, blockchain is but I am learning.
Once you understand the possibilities, markets, whales, terms, philosophy and demand behind the tech, it will be more easy for you to understand. You can search up many articles in steemit, which are rich in context. Better than everywhere else on the internet.
I agree. I am still learning although in the beginning I was buying cryptos only because they were recommended by random people on Youtube which was just stupid. I think if you know what you are investing in then market crash doesn't affect you that much.
You formed a well mind already!
Well I am trying but still not there yet. Although I have learnt that these big investors, banks or so called whales do play with us by creating fear and making us sell when we hear negative news. Its easy to say that patience is the key but its not that easy to control your emotions when market is crashing.
It is easy! You will learn over time. Just keep in mind that this technology is here to stay, maybe for ever..
Yah I agree.
I also got into crypto as away of get rich quick. But now am learning what its alot about. A piece of advice,for those getting in as away of cashing in fast, you will be shocked.
https://www.swiftdemand.com/?referred_by=fazenda
I think more Alt-fiat pairings will only be a good thing.
Of course all crypto-coins are subject to the volatility of the market and wild fluctuations, but at present there is a clear trend that whenever BTC goes down, it drags the whole market with it.
This is even more important with the current BTC futures.
Increasing Fiat:Alt pairs also makes it easier for those attempting to buy alt-coins directly without transaction fees, and potentiallymaking it more user-friendly without having to use exchanges.
I mostly agree with you but i believe that the truth is somewhere in the middle.
Of course it's not possible to have every coin paired with fiat, exchanges can't handle it.
However, they should have more fiat pairs with top coins. Also, there should be more pairs with other major coins like LTC, XRP etc, just like there are many pairs with ETH.
Regarding manipulation, i believe that the market is heavily manipulated. We can just check the charts for BTC, LTC, XRP etc and see they're almost identical. Obvious bot trading.
Whales today are not just early adopters who HODL, there are lots of funds that have bought billions of crypto and now move prices as they will to maximize profit. We can't prove it, but the facts agree with this theory.
Crypto is a young small and unregulated market compared with FX etc, so its very easy for them to do what they want. We small fishes just have to play along.
That's exactly what I think. I'm not a bitcoin only guy. I just don't think USD pairs for every single coin/token is necessary. I think the best solution is to have pairings with the top 5 or 10 coins (by market cap, daily volume, trajectory, etc) like BTC, ETH, LTC, DASH, BCH and maybe couple more
When I first started small trading in cryptocurrency I used to fear sell my alts if the value in USD goes down because I saw my worth going down. Later I understand that fait worth doesn't matter much because my main goal should be ganing more in BTC and if I HODL they value most certainly will go up. At this moment I am still at a loss but I am hodling.
Thanks for the great article.
Solid post. I'm sure many people are panic selling right about now. These same people will be regretting that panic sell in not years but months.
Time to panic buy!
I'm panic buying my original bitcoin buy in. Doubling down
I'm also bullish on LTC and made my own analysis on the impact of Litepay on its future price: https://steemit.com/cryptocurrency/@cryptovate/litecoin-s-litepay-to-bridge-fiat-and-crypto
johanalejo Loving your material and upvoted always. I hope you've had time to check out my material as well. I'm a crypto analyst specializing in Elliot Wave Theory. Please consider following me if you are looking for original content as I believe my Youtube and Twitter is the most unique channel currently out. I currently have 80,000+ followers on Youtube, Twitter, and here combined where my goal is to help improve the crypto community. I hope it'll add value to your crypto career through my enthusiasm and love for crypto.
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Agree with you. as a day trader I did the same mistake to buy and sell altcoin against the USD price but when I looked at my portfolio I find out I had more BTC when I bought than now.
Yeah, I do agree that it is antithetical to Satoshi Nakamoto's original plan for Bitcoin, but at the same time, some of Bitcoin's key traits are today's altcoin's innovative inspiration.
These traits that were seen as wonderful to those who craved for something decentralized are now faced with issues of scalability as more users join the Bitcoin Gold Rush; therefore, Nakamoto's intentions are short-sighted.
Who would've known that Bitcoin would grow so much and so fast? Who would have known that digital currencies, in general, are taking the financial industry upon its heads?
I'm not advocating full regulation into every aspect of crypto, but definitely more regulations to prevent illegal activities. If the federal government intends to play with this new technology in the years to come, I would like for those who are looking to innovate in this industry to play with the regulators.
Let me make this clear: No one group of people should hold the power to manipulate markets, and no one group has that power, but when it comes to decentralization or regulation, I think there needs to be some middle-ground.
If there isn't, then our investments might be even more at stake. If there were no regulations, then more crimes would be facilitated by this technology, which would eventually be traced and put to a stop.
So the next time you see someone bagging on regulations, just keep in mind how you can interpret the news to your advantage and know that it's actually best for the long-term.
And as a parting message: keep calm and hodl long.
Very nice article.
One crypto currency prices are paired with another cryptocurrency. Since both can moved in either direction, gains on altcoin can be negated by decline in underlying cryto mainly btc/eth.
In absence of a fiat currency most people are seeing a red portfolio where correction in main crytos is hitting hard on altcoins too.
A most appaling misconception. I had been a victim of that earlier "The whales control bitcoin"
There is power in knowledge and there is power in the people's hand. There is power in our hands, let us use it wisely
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I think this is a very good point. I hear people screaming for bitcoin to die in chats but everyone got into this game through bitcoin and I myself have always enjoyed holding bitcoin through its ups and downs. The market gets played no matter what all markets have manipulations its just whether or not its known to the public or behind the scenes.
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Just write about the same things that make you stay awake at night, looking for information on the internet. You don't need to have the answers, sometimes it's even better to make yourself a question a sharing it with people here. You won't believe how many people will want to share the answer with you
thanks @johanalejo
I think your last sentence is gold. 😁😁😁
great article with a vital message that always needs to be reiterated as more people entering the crypto market need to be aware of!
Comments from Economy leaders,Big countries about security of Cryptocurrencies and trust of investing money in Cryptocurrencies and so called protective laws shaking trust of people on btc. And sadly all alt coins are getting effected cuz being chained to btc. Just look at Stratis supported by England developing with hi-tech with many features. But its losing cuz its also chained to BTC. But still i belive cryptocurrencies are next step of our economy. so i will hold my btc. and while its low on price i will get more btc. maybe some other alts. They will rise up soon. Because there are very high potential.
On point! What your have written here was also my mistake when I was starting to trade cryptos. I was gaining less than what I should earn and I am losing much more than what I should lose. That's when I realized that I should consider the value of the coins is fiat. This article explains everything.
You hit the point that there are too many people who don't understand how the market really works, but at the end of the day there will need to be more altcoins to purchase with fiat in order for the the market cap to get into the trillions of dollars. It is inevitable that Coinbase will list additional coins at some point over the next 12 months, which will really help with the fiat pairings for other altcoins and it should be pretty realistic that Robinhood will list more than the usual top few coins for purchase with fiat once they get their crypto platform running and work out the initial kinks.
It is all about how easily accessible crypto can become to less risk inclined investors. If people know they can purchase different crypto through a broker that is backed by the FDIC and it can be easily accessed and held in a portfolio with other traditional stocks, bonds, mutual funds, and ETF investments, the trust is then established to an extent for additional investors to put money into crypto. If this does happen over the next year or two as more brokerage firms see the money to be made in offering crypto investments, we can expect the entire crypto market to soar into the trillions.
@johanalejo congrats on the award. I like your strategy on how you get your post to be seen i been watching you for a few hours now. I try to stay away from the altcoins just because there not as known and not that trust worthy yet but great post by the way and its blowing up like a volcano
That's a good strategy. You should always take the risks you can deal with. So many pople got rekt on a dare. Just because someone else takes more risk than you do that doesn't mean that you should take it too. Just by buying and holding BTC you're a daredevil to some people
Since bitcoin is being paired to multiple other Crypto currencies, slight movements effect all the other coins. It is clear that the price of a coin will increase/decrease depending on the price of bitcoin without factoring the coin's movements. That has positive effects in a bull market and negative effects on a bear market. If we are to accept one we must inherently accept the other. I will naively say that multiple pairs should be available to create positive independence.
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You got a 26.32% upvote from @bid4joy courtesy of @johanalejo!
so true :)
Cheers for addressing the pairing issue,
Actually everyone faces the btc-alt trading pair issue, initially it is tough, but then when user starts tracking price in terms of Sats, things get more complex,
trading in terms of sats make you want btc to fall, and alt to rise but situation isn`t as easy.
For this purpose leverage equal quantity of btc on the exchange and play it safe.
Loosing btc for alts, is a big stupidity.
Totally agree with you @johanalejo
If Altcoins might move sepertately from Bitcoin the market will be more stable. There are lots of good projects that are dropping just because the FUD related to Bitcoin.
I also made a long term Bitcoin analysis too. I will really appreciate If you could take a look at it too.
https://steemit.com/bitcoin/@pozzecco/6700usd-might-be-dip-of-the-bitcoin-i-don-t-say-it-the-moving-averages-says-so-check-it-out-bitcoin-technical-analysis
I believe that there needs to be fiat pairs for alt coins so that we can cut banks’ control over the flow of capital by a larger extent. I know there are regulatory hurdles behind using fiat, but cutting out a step in the purchase process would help with adoption and speed of executing trades.
The whale is a vampire, stealing money from our pockets.
the Whales or are you talking about a specific one?
That is so dumb. My brain hurts
your looking Twitter
maybe good or bad
very good job dear @johanalejo
I like your post dear👌👌👌👌
I @love bitcoin
I @resteem your post dear
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Its good that you have set it right. Thanks.
7.62% @pushup from @johanalejo
I believe the best time to sell your alt coin is when BTC is down and your alt is up from your initial buy in. That way when you sell for BTC you get more for your money and just wait til BTC goes up then sell for Fiat.
Because Fiat currencies are so stable with their continuous inflation... Can't wait for the day though that Bitcoin is gonna be taken over and not have so much effect on the whole Blockchain world.
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