Hey there everyone, this is @prakhar9675 this side and this post is against the homework given by professor @imagen and in this post I will try to answer all the questions asked by professor.
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[Source](https://images.app.goo.gl/j8GuRDqJVZ5aYmQX9)
So let's get started:-
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
## Explain in your own words, the concept of Dominance in the world of cryptocurrencies. What is the dominance of Bitcoin at the time of performing your task? (Present at least 1 graph)
In cryptocurrency world, the word **dominance** is used to measure the percentage that is present in the market of any coin or token with respect to total coin and tokens that are present.
For example, if the total market cap of all coin is 100 unit and bitcoin alone has 40 and ethereum has 20 and 40 unit is captured by all other altcoins. Then market dominance of bitcoin is 40% and ethereum has 20% and other altcoins has 40 percentage market dominance.
When bitcoin was not launched, the dominance of coins used to change. But in 2013 when bitcoin was launched, it took over the whole market and not it is dominating the whole market since then.
I can't recall any time where any other coin or token dominant bitcoin.
Now a days, dominance of other coins like **ethereum and binance coin** are also increasing but when we compare it's dominance to bitcoin's dominance we can clearly see that it is still far behind than bitcoin.
Here you can see easily that before ethereum was launched, almost whole market was dominated was bitcoin. And total percentage of bitcoin was **85.74%**. But after ethereum was launched, it took over much market and other coins were also introduced and thus bitcoin's market dominance was decreased
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
**Dominance of bitcoin**:- I am sharing the dominance chart of coins taken from **coin market cap**.
[Source](https://coinmarketcap.com/charts/)
At the time writing this post, total market dominance of bitcoin is **47.81%**.
Now you can the ethereum with **15.44%** is at the second spot but it is still far behind.
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
## Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)
As all we know that cryptocurrency market is highly volatile and price of coins can touch sky and then again can drop to ground in a single day.
Many time due to many global reasons (for example during covid 19 pandemic) the whole market can crash and there may be other reasons for this too.
So in this section we will be discussing two major events when the whole market crashed.
1. In 2018, from January 2018 to February 2018, during this period bitcoin fell by 65 percentage. During this period price of bitcoin fell from nearly 1100 k INR to 448k INR.
And other coins also followed this Trend and almost every altcoin along with ethereum fell.
During this period, the price of ethereum fell from **nearly 77,000 INR to approx 26k INR**
2. On 14th of April 2021, bitcoin started to fall. And at that time it's price was around **4800 k INR** and it continuously fell down till 25th if April 2021. And on 25th of April, it price was around **3700k INR**.
All other altcoins including ethereum followed this Trend and price of ethereum also fell down. Other coins like **BNB ( binance coin)** also fell down from **525k USD to 455k USD** and many other coins were also fell down.
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
## What is the Altcoin Season?
**Altcoin Season is the period in which atleast 75 percent of the top 50 altcoin perform better than the bitcoin.**
As we all know that bitcoin is the largest dominant of the cryto market. But when due to some reason (mainly because of price drop or likely price drop) investor pull out their money and invest into altcoins and this made altcoins to reach to new High points.
This may continue for weeks, months and this whole period is called altcoin season.
[Source](https://www.blockchaincenter.net/altcoin-season-index/)
Now by looking at this index you can see that altcoins have performed better than bitcoin and thus **it's altcoin season**
This is also confirmed by this site also. When you open [this link](https://www.blockchaincenter.net/altcoin-season-index/) this will clearly say that it's altcoin season
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
## 2 altcoins in the TOP 50
My two favorite altcoins in the top 50 are ethereum (#2) and XRP (ripple)**. So in this section I will talk about this only.
**Ethereum (#2)** ethereum is currently at no 2 spot behind bitcoin. Before it bitcoin used to dominate the whole cryto world but after it was launched **in 2013 Vitalik Buterin** it ended the monopoly of bitcoin in this world. The main motive behind its creation was to make coin better and easy to use using smart contract.
Ethereum also introduced a new term **ICO** that is similar to its counterpart in real life trading **IPO**. It allows start ups that have ideas to do better but don't have funds, to raise funds before listing on any exchange.
Ethereum blockchain also allows developers to create many decentralised apps on its plateform.
And now a days most popular thing **NFT** is also being done on ethereum blockchain. Almost every NFT is sold through this blockchain.
Thus we can say that, ethereum keeps adapting itself with time and keeps bringing new things into existence. And also get great response from people.
**XRP(ripple)(#8)**:- ripple was created by RippleNet in 2013. And its main motive was to make transaction across political border cheaper and less time consuming. Its native coin is XRP.
All the transaction are being done using this coin.
Whenever any amount is being transferred, it initially is converted into XRP and then it is transferred. After this in which country it is being received, XRP is converted into that currency.
Thus is it quite fast and quite cheaper.
Ripple has been in partnership with many banks and very giant business institutions. These business institutions do their transaction through this and this makes their transaction secure, fast and cheaper across the globe..
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
## How can relevant news influence the price of cryptocurrencies in a positive or negative way? Name at least 3 examples. (Use screenshots) (Example: SENSO announced a 70% token burn, in a week the price increased more than 100%)
**1. Elon Musk announced investment of 1.5 bn USD into bitcoin**:- This year in February 2021, Elon Musk announced that Tesla will invest 1.5 bn USD into bitcoin and soon tesla will also accept Bitcoin as a mode of payment.
Soon after this announcement, bitcoin price touched the sky and soon it reaches nearly 62000 USD.
Elon Musk also wrote **#bitcoin** in his twitter bio. But now it's not there. But then it was there.
I am sharing a graph from coin market cap. In which you can see that in February how it's price went hugh after this announcement.
**2. XRP- SEC case**:- in December 2020, US security and exchange commission announced, it has filed a case against ripple which own XRP. And the allegations which were made by SEC was that ripple has raised over 1.3 bn USD through securities which were not registered.
[Source](https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.sec.gov/news/press-release/2020-338&ved=2ahUKEwi1tKK94sPwAhUTwzgGHfbZBVwQFjAAegQIAxAC&usg=AOvVaw1Z89JdZBHHT6U1pga_ae4u)
Soon after this news, XRP crashed about 40 percentage. And many experts also said that it anyway SEC wins this case, XRP project will be fine but Ripple will suffer and might je die.
**3. Shiba INU price hike**:- Shiba inu is a cryptocurrency which is abbreviated by SHIB. Before it was not listed on any exchange, it's price was not high.
But on 10 may 2021, binance listed it on its exchange. And then it surged. And its price increased about 1000%.
So just one news by binance changed the fate of investors.
You can see this graph nearly vertical. This happened when this news came.
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
There are ma y other examples of such news like **Elon Musk tweet on doge coin** which became now fourth largest Crypto currency in the world with more than 72 bn USD market cap.
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
## Describe one of the following Penny cryptocurrencies:
Penny cryptocurrency are the one which has valuation less than 1 USD. These types of cryptocurrency bare highly risky but many times it has been very profitable to the investor. For example shiba INU and doge coin.
**Safemoon** is also a penny cryptocurrency. It is currently listed on coin market cap. And not listed on Binance.
It is also known as **safe to the moon** as it wants people to hold it. Not to sold it. And for this, company has imposed a 10 percent of fees for selling it.
Every time when a investor sells it's safemoon cryptocurrency, it charge 10 percent fees. And from this, 5 % is distributed to its members who are holding it.
Thus the person who are holding it for much longer can make profit without selling it.
**Its current price is ₹0.0006234 as per coin market cap.
Its 24 hours low/high are :- ₹0.0006006 /
₹0.0008165
Total volume:- ₹7,759,188,822.84
And now **it's currently at #203 spot on coin market cap**
So that's all from my side. And I would like to thank @imagen professor for this amazing lecture.
https://cdn.steemitimages.com/DQmfDMjfMhpTf7hXnuPwLgSRYZdTM2troJzmbiEjWHc5DhZ/blue.png
Cc
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