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[Music] hey this is David for big bits in this video we’re gonna talk about Bitcoin dominance now you’re not familiar Bitcoin dominance is the percentage of the entire cryptocurrency market cap supposedly that Bitcoin controls if you’re looking at this chart you can see Bitcoin is the orange line when it comes to dominance and over time it is held more control of the overall crypto market cap then all the other coins measured on coin market cap combined that’s pretty impressive that’s one coin that has more money in it than any of the other coins combined that’s that’s quite impressive but I think there are a few issues and the video is here to ask is Bitcoin dominance useless well I’ll tell you right now it’s not entirely useless you can see that it was capable of helping to identify some trends you can see here that I believe that’s XRP yes that’s XRP on the blue line here jumped up and caused the dip in Bitcoin dominance and here there was a major move and you can see that this was not just one or two coins but it was all of them the white line is all the other coins not measured in the top eight or nine here so you can see that it is good at identifying trends with the dominance for now but this may not last and more importantly it isn’t really a true number as to the actual Bitcoin dominance in the marketplace now the market cap of the coins that they’re doing I’m not saying that the calculations that they’re doing on coin market cap or incorrect I’m actually quite sure that they are but the problem is that we’re comparing it to all the other coins and there are some faults in that logic mainly is that coin market cap doesn’t hold all the coins in its service so there are coins listed on the market cap there’s quite a few I think there’s well over a thousand let’s see how far it goes here do them all oh yeah there’s quite a bit we’re already a thousand it might be several thousand you and it’s actually so many taking a while to load okay let’s say they have 2408 coins or tokens listed you see there’s actually a lot of information missing on these coins but you kind of get the point there’s a lot of coins on here but it’s not actually including all the coins there are coins and tokens and other crypto projects out there that aren’t even listed on coin market cap at all and have no market cap accounted for in that chart so like I said the calculations may be right based on their data but they don’t have all the data so that’s one thing going against the Bitcoin dominance another is that a lot of these can be manipulated let’s look at some of these lower cap coins these super low cap coins now you see these just have a couple hundred thousand dollars but let’s look at this one it has a circulating supply of 292 thousand coins and it trades at $1 that’s actually pretty decent volume for such a small small cap coin but let’s look at something like this one then okay 61 million it’s got 18 dollars in 24 hour volume that’s all and yet its market cap is 295,000 it seems like it’s very well manipulated in my opinion the real value of a coin down here maybe closer to 0 I’m not saying that these are close to 0 and particularly this one max coin I have no idea what it is I don’t know if this is it’s a coin that’s a value or not but what I’m saying is there’s the opportunity for coins that are listed on maybe just one exchange that coin market cap uses for its data to just have a single trade look there’s one down here $2 that’s like a minimum trade amount on many exchanges $2 I mean they could’ve just had one trade for the day and they have a market cap of $282,000 so you can see where it can be manipulated and now even worse than that can you imagine if this coin was traded on an exchange where the books were having to be cleared out or if it was its own exchange coin they could completely manipulate this to whatever they wanted that the the price could end up being you know $1 per coin and they’d have a much larger market cap than they are 50 almost 50 times something like that so just keep that in mind that these can be manipulated by the key holders in price especially when you get into these lower cap coins that have very low volume okay not only that there are unlimited new coins that could potentially be added as you can see we were already over 2400 coins and we can add and we can create as many as we want you can create an e rc 20 token in a matter of minutes some places it can actually be expedited even quicker than that if you find a website that is a D app that lets you make one you can make it in just a couple seconds if you already had a theory imbalance in your account so you can easily make new ones now you do have to get them listed on coin market cap and if you’re not looking at the same Dominus chart I don’t know if there are other sites that have it most of the people who I see talking about diamonds they’re talking about the coin market cap DOM and it’s for Bitcoin and if there is another site with more data I’d be kind of surprised because coin mark has been around for a long time so there’s a chance that other sites have more but there’s always a chance that more are added and said people can make new coins every single day and it could just I mean it can be someone like myself who makes a coin gets it listed on a token you know depending on the jurisdiction that may be legal for me probably not but [Music] there is an unlimited potential for new coins and if they all get on here and even if they’re all these small market caps like this that just keeps adding up now let’s look back up a chart this white line is the others this is all of the coins that aren’t in the top eight or nine here only hide these you’ll notice these just kind of have trended up and up over time they went down of course during a bear market for alts but as people continue to inject new coins and their own money into the market and manipulate the prices these are probably just gonna continue to go up unless regulations kick in and people actually start following those now that’s another story but that also leads into the last point of why the Bitcoin dominance may be entirely useless in the future at least on this chart now I want to say I’m not sure why stable coins are included like tether and they are a type of crypto or a token but they’re pegged value and the reason why that concerns me is let’s say somebody wanted to make their own token with a pegged value okay people have already done that and they’re much smaller market caps much further down here but they’re included in the chart there are part of that other section and unless you’re I think no tether isn’t even listed here so tether is a part of this section so if these stable coins are included there what’s to stop a company like Facebook creating Libra and going ahead and backing a ton of their own tokens initially and they’d have a circulating supply immediately immediately backed by a dollar with millions of coins already eating into this market cat versus Bitcoin now that’s just a small example Facebook has millions and millions of dollars probably billions I don’t really keep up with that information but they have tons of money and if they work to take Libra and day one Libra gets added on here it’s gonna completely mess up that dominance chart bitcoin is suddenly if Libra were to get added you know let’s see it’s a hundred and forty four billion what’s the difference between it and all the others it’s at 66% you yeah it won’t take much to eat into it I mean it’s dropped below 50% dominance before and it’s more than any other coin and in most cases it was more than any other coin combined I think I said it was still was that’s that’s clearly not the case as you can see you know the others plus the etherium here was more than it at that point in time but the point is made that these coins we’ll eventually surpass Bitcoin entirely and particularly on this chart so when you’re looking at Bitcoin it’s gonna have to be relative to other coins or some sort of index to be useful in the future and like I said it’s still useful and it probably will be useful in the future but the numbers themselves don’t really mean a lot in my opinion you know the percentages don’t really mean a lot I could care less if it says it was at 92 percent back here and if it was at 33 percent here what really matters when you look at something like this is the trend and the changes that are happening in here because like I said a single company to come through and completely flip the script Bitcoin has always been the number one coin in market cap but let’s take the Liebherr example again let’s go back and look at Apple Apple has two hundred and ten billion dollars cash on hand now what’s to stop Apple you know other than laws and such to create their own token immediately backed with their own money and it immediately becoming the number one coin on coin market cap say they took 210 billion that’s 70 billion more close to it 70 billion more in Bitcoin right now if they were to make a coin tomorrow and of course by the time something like that does happen I’m sure bitcoins Martin kept in my opinion is probably gonna increase quite significantly by then but that’s just an idea of the impacts that you can think of with this chart so don’t get too hung up on the actual percentages and the actual numbers here if you’re looking at the dominance based on the market cap just look at the trends you can see that trend was clearly an all-season this trend another one and they were continuing to do good and then it started trend away from that that’s what this charts useful for seeing the actual dominance I don’t think it’s that great it’s probably the closest thing you have though no doubt and then also talking about the individual company now imagine this the United States will eventually tokenize the dollar and there’s just an article but there is some speculation that this could happen and could you imagine how many trillions of dollars in market cap that would be it’s uh it’s a pretty big deal and it’s gonna completely shift the way something like this would look you would have to look at you know decentralized coins you would probably want like a decentralized market cap chart that focuses on something like that if you want to follow the trends because if if something like the united states government were to tokenizer dollar and it was to become on a chart like this Bitcoin even would look miniscule and you probably couldn’t even see any changes but that’s it for the video if you like the video please like if you like these sort of videos please subscribe I do a lot of videos on training and development related things I post a lot of scripts on training view I do a tutorial series on trading these scripts and we’ve gotten quite far into that already and check out my profile on there and you can check out the ideas and everything else that goes on check out the social media and the links below in the description and thank you and have a great day [Music]
