If you are trading or investing in virtual currencies, you If you are trading or investing in virtual currencies, you are without a doubt concerned about their price movement.
So, is it possible to predict the price movements of virtual currencies?
One thing that you will sometimes see regarding price movement is that altcoins and bitcoins move in tandem.
Is this information really true?
In this article, we will try to answer the question of whether or not altcoin and bitcoin are linked to each other.
Are altcoin and bitcoin price movements linked?
In fact, do altcoins and bitcoins move in tandem?
I’ve gathered a lot of information.
・They are not linked in any way.
・Some say that they are just linked by chance.
On the other hand, there are those who say
・They’re linked, because when the price of altcoins goes up, some people covert back to yen.
As you can see, both of these opinions exist.
So, which is correct?
Are the price movements of altcoins and bitcoins linked? What are the reasons?
It is said that the reason altcoins and bitcoins move in tandem is because altcoins are bought with bitcoins.
I’ll explain it in more detail below.
If you want to buy altcoins, what steps do you need to take?
1) Deposit Japanese yen into your account at an exchange.
2) Buy altcoins.
This is not the usual way to buy altcoins.
So, what steps do you need to take?
1) Deposit Japanese yen into your account at the exchange
2) Buy bitcoins with Japanese yen
3) Buy altcoins with bitcoins.
Steps (1) through (3) are required.
Therefore, when buying altcoins, bitcoin is bought in step (2), and the price of bitcoin rises.
After that, altcoins are bought, and the price of the target altcoin also rises, so the price movements are linked.
Incidentally, since it has recently become possible to buy altcoins with ethereum, there is a possibility that the price movements of ethereum and altcoins will also be linked.
In the above, we have explained whether the price movements of bitcoin and altcoins are linked.
As long as bitcoin is needed to buy altcoins, as it is now, it is safe to assume that the price movements of bitcoin and altcoins are linked to some extent.
Therefore, the most important question is whether or not the way we buy altcoins will change from here on out.
If the current route of buying altcoins with bitcoin changes, the price movements may no longer be linked.
If you are concerned about price movement linkage, pay attention to the way you buy altcoins.
There is also an article on how to mine bitcoin easily, which you can refer to.