Bitcoin’s dominance [BTC] in the cryptocurrency market was evident after the coin’s recent price fall caused a domino effect in the market. Considering it is the largest virtual asset in the ecosystem, the price of Bitcoin often affects the entire market collectively. As many users find it difficult to invest heavily in Bitcoin [BTC], they often take to altcoins to make short-term profits.
Tone Vays, Bitcoin enthusiast and crypto-analyst, stated that Bitcoin was the most viable option to “diversify your traditional portfolio,” and that other altcoins did not help improve a trader’s portfolio. He put forward the argument that every other crypto depended on Bitcoin and in the event that Bitcoin fails, all other cryptos will fall with it.
He added that altcoins usually go down faster in a bear market and witness flash hikes in a bull market, implying that the volatility attached was supremely high. According to him, Bitcoin [BTC] would eventually go up faster than altcoins, which would significantly drop the valuation of all cryptos, except the largest one in existence.
“If users want to hold Bitcoin, they should just hold the Bitcoin. If people want to speculate and trade other coins they should take that path as well but when it comes to portfolio diversification, we are talking about long-term investments and not speculative-risk laden trading.”
Tone Vays also spoke about the recent Bitfinex-Tether situation and discussed the possibility of Tether going down and its effects on Bitcoin [BTC].
He said that if Tether went down, it might be a blessing for Bitcoin [BTC] as more people would hold their money in Bitcoin.
However, he also put forth a counter statement, remarking that it was good news for Bitcoin [BTC], considering the fact that its prices had bottomed already.
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