Bitcoin has crashed, and I probably should have posted this sooner but this is still relevant and important information because it is directly linked to the price of Bitcoin.
One of the major obstacles when buying cryptocurrency's is determining their worth and what they should be worth. Bitcoin is the most tradeable cryptocurrency, and therefore it is the most relevant measure of altcoins, but then again the US dollar is the most effective measure of value for the entire planet.
I wrote an article about the teetering price of bitcoin last month, and so far it seems like my prediction is valid.
So.. how do we measure price predictions in terms of growth?
The answer is BOTH, but each depends on your point of view on the price of bitcoin.
If you believe bitcoin is going up, measure your gains IN bitcoin. However, if you think that bitcoin is going down (as it is currently), measure your altcoins in USD.
The explanation is quite straight forward: If you think bitcoin is going up, by making price prediction gains in bitcoin (BTC), you are giving yourself a competitive advantage than when measuring in USD, because it works like a buffer on the price in USD for your altcoins. This means that if your altcoins don’t move up when measured in BTC, they will STILL go up in US dollars as long as bitcoin is moving up in US dollars.
For example, if you have .1 BTC in some altcoin, and Bitcoin goes up in US dollars, then your altcoin will still go up in USD, even though it did not move in Bitcoin (BTC).
On the flipside, if you believe bitcoin is going down, then its better to predict your altcoin gains in USD, because even if they do not move in BTC price, they will still go down in US dollars as long as bitcoin continues downward.
I know it might sound confusing but its actually quite simple when you think about it.
I wrote this article because I keep on seeing price predictions being made in US Dollars, and I wanted to clarify the difference so that traders can understand what kind of competitive edge they can have by doing so.
Hope this helps, feel free to upvote, subscribe & follow.