Hello community, hello HIVE in general, today I want to talk about something based on a very contextualized topic, without being an expert on the subject, I would like to give my opinion regarding why many of the alternative currencies (hive for example) have gone down so much in price while the mother of cryptomontages, BITCOIN, is going up .
I repeat, I am not an expert but I have something to say about it, after more than three years in the cryptography world I have been able to see some important variations in the prices of the different tokens. So, let's start with the development...
The first thing that we must have clear, before speaking more about it, is that cryptocurrencies in a general way can be classified in two ways:
- Bitcoin: first cryptocurrency created, and from there the others emerged.
- Altcoin: all non-Bitcoin coins, that is, more than 3000 at the present time.
With this a bit clearer, let's continue.
The Bitcoin in Ascension 🚀 and the ALTCOIN downloading〽... why?...
Of course, I can't say that all the Altcoins are decreasing in price as the BTC rises, but at least Hive, to talk about one that surely interests all of us who are on this platform, has dropped considerably in price, or didn't you notice that 1 Hive was worth 0.10 a few days ago?. Of course, today 07/11/2020 has gone up a bit in price, I must point out.
But, it has already started to recover, how far will it go?, no idea, but I hope very high. Well, one of the main reasons, at least in my opinion, for the price alterations to go down as the BTC rises is that many people are withdrawing any savings they may have in alternative currencies, or simply changing them to BTC to take advantage of the rise, and make a profit from it.
Later, they could buy back the alternative currencies they had, but in greater quantities since the altcoin dropped in price but their capital increased. If you don't understand what I'm saying, there's nothing better than an example to help you visualize this:
Let's suppose we have 1000 hive, when it was at 0.120 $ and the BTC at 12000. I change my 1000 Hive and get $120 in BTC. But it happens that the latter keeps going up and reaches 15000$. Now I don't have 120$ but 150$.
But also Hive went down in price and is now at 0.100...It turns out that I would no longer buy 1000 original Hive that I had but 1500... Now, shall I explain myself?
With these upward movements of the Bitcoin, the cryptographic environment becomes more speculative, and those who have great economic possibility know that this of many will sell the altcoin to acquire btc is going to occur naturally, so they issue large volumes of purchase of altcoin but at a price much lower, managing to obtain large amounts of these tokens but lowering its value as a result .
I know that talking about these things can be a bit confusing for many, but the reality is that it is necessary to touch on these issues, for those who are entering the space of cryptography, and do not know anything but only know how to write, they may think at some point that this project called HIVE is in decline, and it is not so, the cryptomonkey market is very volatile, and part of this reality that we are living is a reflection of their behavior.
This is a particular vision that I share, I would like to know your opinion about it, if you have anything to add, I am fully open to debate, suggestions and contributions.
Have a great weekend, everyone.
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