Crypto Market Is Centralised, Harsh Truth
We usually say that Crypto promotes decentralisation and it does but is it on the right track in showing us how decentralisation is done.
I guess not. Seeing the Crypto market movement I would say it's kind of moving like a centralised movement or organisation.
Note:- I'm not an expert in Crypto these are just my thoughts. Feel free to correct or criticise my views. I don't intend to create any panic or anything in the market.
Today morning, when I woke first and foremost I checked the price of coins as it's now a habit of mine which activates instinctively and so I did. Seeing the sudden crash in Bitcoin a thought of centralisation and decentralisation came into my mind and so I thought to write over this.
Why do you say the Crypto Market Is centralised?
Truly it's not but the movement it shows, one can't deny it shows the signs of centralisation. As the whole Crypto market follows the movement of Bitcoin (BTC). If it goes up the whole altcoins and other coins follow its movement and vice versa except the stablecoins. So seeing this, one can't say the Crypto market isn't fully decentralised for now, as it's not following the cardinal point of Decentralisation, controlling many coins through one coin that is Bitcoin.
Reasons:-
The reason is obvious as the first Cryptocurrency people have heavily invested in this and it's also known as Father or Mother Or Cryptocurrency.
Bitcoin holds more than 40% of the total market cap value of the whole Crypto market which we say is BTC dominance and as the majority of money flows through it, the market heavily depends on it. And the major currency traded pairs are on BTC like BTC/SHIB or BTC/BCH.
Solutions:-
People should trade and invest in other Cryptocurrency pairs like BCH/JOY or ETH/SHIB or BNB/BCH. So that the money flow of the total Market Cap of the entire market is distributed in other coins and pairs, ultimately decreasing the Bitcoin's dominance and taking its power. Like if we really want to make Bitcoin Cash a big success we should trade coins or tokens in its sidechain SmartBCH.
Promoting and supporting the actual value of coins and not giving an opportunity to a single coin to manipulate the market.
One more thing do you know that there are more than 1 Million BTC in Decentralised wallets untouched by miners or old holders. Maybe some of them are of the core members or even 'Satoshi Nakamoto' himself and if a wallet with 100 or 1000 moves, what will happen. A crash capable of dumping you to great depth and if all those wallets moved at one then you would be buried alive, lol.
Final Thoughts
But 1 million BTC movement at once isn't gonna happen but 100/1000 can happen and so we should promote the actual decentralisation concept and don't let Bitcoin or a single coin take the power of controlling the whole market. A simple way as I have said earlier is to invest in other projects and trade in other Cryptocurrency pairs like Binance, Bitcoin Cash, Ethereum, Matic etc. Lots of other better options are there.
I know we have a fair share of scams in a few months recently ultimately killing moods of new and fresh investors in our SmartBCH side chain and there's one way to solve this to not support newcomers unless there's a genuine name and achievements involved with an identity of proof. Let's not give them any opportunities to downgrade the rising name of Bitcoin Cash. The same applies to other coins with sidechains.
So what are your views on the topic? Please correct me, if I have the wrong knowledge or explanation.
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It is normal for cryptos to lose value. All cryptos rise or fall but recently multiple tokens on SmartBch have dropped well below their value. Compared to the markets, these were not normal declines. It was projects that hurt SmarBch. What I said applies to me at least, I haven't been logging into smartBch, nor have I been tracking prices since the last drops.