Saturday, May 27, 2017

Importance of alt coins creating stability in Bitcoin

People stayed in their alt coin when BTC looked high, and now they are rushing back into BTC as it looked oversold. The amount of stability this is adding to BTC is impressive. The competition between alts is determining the value of BTC. This is an oracle (an external fact a cyber-system needs to know, ideally without trusting a 3rd party) that is external to BTC. Oracles taking measurements of the physical world without a 3rd party is the holy grail of these P2P databases. They can't even determine time. Nick Szabo recently re-tweeted a joke someone made about looking at blocks to determine what time it is.

Granted, this oracle only shifts it from the perception of BTC value to the the perception of the value of the entire P2P-crypto-database ecosystem. But the new stability that came to BTC with the advent of viable competitors 2 years ago is clear. This is the first 33% pullback in 2 years ( 4 hour weighted avg) and it seems to be over. And the 20% to 30% pullbacks are only occurring soon after 30% to 50% rises that occur quickly. So traders are being penalized if they do not assume the rise is smooth. This is tremendous for BTC, especially considering the kind of news that has come out in the past 2 years.

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