🥊 What is Bitcoin Dominance?

Bitcoin dominance vs altcoins is not a metric that has any significance, so I don't track it. For example, I would not measure the value of Tesla stock based on its dominance vs other stocks.

Bitcoin drives the entire crypto market. If Bitcoin falls or rises, everything falls or rises. Because there are many newbies in the market in every cycle, there are many myths, FUDs, and misunderstandings of this asset class. So, newbies think Bitcoin is expensive and fall for altcoins.

When Bitcoin's price falls, newbies get scared; the entire altcoin market crashes worse than Bitcoin, and Bitcoin's dominance goes back up. Many newbies have beginner's luck and feel they are making the right decisions, encouraging them to make riskier bets in altcoins.

The market cap of altcoins can be misleading. In almost all altcoins, a considerable percentage of the coins are with the founding team. If the team were to liquidate these coins, there would be a downward pressure on the price. This creates a higher market cap for altcoins.

One site which takes some of these considerations to calculate the 'Real' Bitcoin Domain is https://charts.bitbo.io/bitcoin-dominance/

In the long term, Bitcoin is superior and is, in fact, incomparable to any other crypto. In the speculative short term, I will be wrong. I encourage you to spend time on this asset class to understand it before you invest serious money. It's not that easy. But we are here to support you in this journey.