The Real Bitcoin Dominance is 79.18 Percent, Claims a New Tool
Bitcoindominance.com, a new tool that recommends some other factors to consider before calculating a cryptocurrency’s dominance in the market. Currently, Coinmarketcap, the oldest and largest market capitalization indicator highlights the bitcoin dominance as 62.3 percent whereas, the new tool indicates it as 79.18 percent.
In contrast to Coinmarketcap, this tool only considers a handful of cryptocurrencies among the 5862 coins available in the market. The coins that use proof-of-work in an attempt to be money, are only assessed to determine dominance are listed below,
- Bitcoin Satoshi (BSV)
- Bitcoin Gold(BTG)
- Ethereum Classic(ETC)
The formula to calculate the real bitcoin dominance index as per the tool is
Market Cap of Bitcoin/Market Cap of Bitcoin + Market Cap of Coins on the above list
Tool Considers Coins That Uses Proof-of-Work
The tool, bitcoindominance.com prioritizes the coins which use proof-of-work. It does not include ICO’s or Stablecoins.
Why does it not include ICOs?
As per the tool, the ICO’s are controlled and issued by a centralized entity and hence cannot act as hard money and moreover, they have no contribution over the development of the fiat system or in printing money.
Why are stablecoins excluded?
The tool considers the stablecoins as an extension of government-controlled fiat money and the value depends on the fiat dollars. They swing in between the fiat and cryptocurrencies.
On the other hand, the tool includes only proof-of-work coins as the PoW is the only element that satisfies the decentralized network criteria. However, they also provide an option to exclude Ethereum as being a PoW coin, people do not consider it as a medium of exchange rather a decentralized platform.
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The netizens went crazy on this revelation
Jameson Lopp, a Bitcoin engineer and Co-founder and CTO at CasaHODL and creator of satoshi.info, bitcoin.page, and lightning.how took to Twitter and wrote;
A fresh new take on Bitcoin Dominance that makes it a slightly less stupid metric.
Many of the users agreed to the logic of considering only coins using PoW, however, some of the users felt that it’s just a number game that is used to twist as the majority of the coins are paired with BTC.
While some others also were amazed by the presence of coins like BSV, Bcash, BTG, and Doge. And also alleged that ETH too held an ICO, but still is included in the list.
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Conclusively, the new tool has surfaced new parameters which might be essential to calculate the dominant crypto in the market. Well, many agree with the tool and some also feel that it lacks more research. However, whether it is bitcoindominance.com or the CMC, Bitcoin is the most dominant crypto ever as of now.