ALT Market Cap -- 90% further drop
This gives a general overview of the Alt market. It looks like we may be headed for a test of this confluence. To put that into perspective, if we test this area, it means that the ALT market will lose an additional 87% of its value by April/May of 2019.
While on this topic I think it is important to address one issue with crypto market cap that is on par with Tether. Forked coins create an illusion of money pouring into crypto when in fact no money has entered the ecosystem. In essence, they are a way to pump fake money into the system.
Consider when Bitcoin Cash was forked from Bitcoin in August of 2017. It was a free coin meaning that all 16 million holders of bitcoin were gifted with Bitcoin Cash. After the fork, Bitcoin Cash began trading on exchanges at $240. So, in an instant, the crypto market cap grew by 4 billion dollars. The problem with this, however, is that no USD had actually been used to purchase Bitcoin Cash. In other words, 4 billion dollars appeared to have entered the crypto ecosystem when in fact none had. That 4 billion could then be used to purchase bitcoin and drive the prices higher and higher. Bitcoin Gold was an even worse offender with an instant valuation of over 8 billion dollars.
The problem, of course, comes when people begin to cash out from crpto. Since that money never actually came in, it isn't actually there when people cash out. I do not know what the end result will be but it doesn't seem like it will be a good one. If you have any insights please feel free to comment.
While on this topic I think it is important to address one issue with crypto market cap that is on par with Tether. Forked coins create an illusion of money pouring into crypto when in fact no money has entered the ecosystem. In essence, they are a way to pump fake money into the system.
Consider when Bitcoin Cash was forked from Bitcoin in August of 2017. It was a free coin meaning that all 16 million holders of bitcoin were gifted with Bitcoin Cash. After the fork, Bitcoin Cash began trading on exchanges at $240. So, in an instant, the crypto market cap grew by 4 billion dollars. The problem with this, however, is that no USD had actually been used to purchase Bitcoin Cash. In other words, 4 billion dollars appeared to have entered the crypto ecosystem when in fact none had. That 4 billion could then be used to purchase bitcoin and drive the prices higher and higher. Bitcoin Gold was an even worse offender with an instant valuation of over 8 billion dollars.
The problem, of course, comes when people begin to cash out from crpto. Since that money never actually came in, it isn't actually there when people cash out. I do not know what the end result will be but it doesn't seem like it will be a good one. If you have any insights please feel free to comment.