Is Bitcoin ETF Good For Altcoins?

The relationship between Bitcoin and altcoins is like a father and his rebellious children. On the one hand, they share the same DNA: they are cryptocurrencies that run on blockchain technology and can be used to make online transactions. On the other hand, they have differences and rivalry that make them compete for the attention and value of users.

Bitcoin is the founding father of all cryptocurrencies. It first appeared in 2009 and since then it has been the most popular and the most valuable. It has a reputation for being safe, stable and reliable. However, it also has limitations: it is slow, consumes a lot of energy and has a limited supply of 21 million units.

Altcoins are the daughters of Bitcoin. They are alternative cryptocurrencies that emerged after Bitcoin and that try to improve or change some aspects of their father. There are thousands of different altcoins, each with its own characteristics and purpose. Some are faster, greener or more flexible than Bitcoin. Others offer additional services or functions, such as smart contracts, lending platforms or social networks.

The relationship between Bitcoin and altcoins is complex and paradoxical. Often, Bitcoin and altcoins are seen as part of the same family. Basically, they are the same market. When Bitcoin goes up or down in price, altcoins usually follow its trend. When Bitcoin has problems, altcoins suffer the consequences. When Bitcoin succeeds, altcoins benefit from its success.

On the other hand, they are competitive. Every cryptocurrency wants to get more users, more investors and more value. Every cryptocurrency wants to prove that it is better than the others. Every cryptocurrency wants to be the market leader. Sometimes Bitcoin and altcoins clash, criticize or ignore each other. At other times, they are allies, support or help each other.

In short, the relationship between Bitcoin and altcoins is like a big and diverse family. There is love, but there is also fighting. There is respect, but there are also challenges. There is unity, but there are also differences. What is clear is that no cryptocurrency can exist without the other. And together, they make the world of cryptocurrencies more interesting and dynamic.

Today, Bitcoin is a scarce asset, but don’t be fooled by its appearance. It is not scarce in the same sense as gold, which is a limited natural resource and difficult to obtain. Bitcoin is scarce in the same sense as a homework list in a notebook, which is an abstraction that depends on the will of the teacher. Or in the same sense as a code in a database, which is an abstraction that depends on the programming of the developer.

Bitcoin is scarce because its creator, the mysterious Satoshi Nakamoto, wanted it to be that way, who decided to have 21 million units in circulation. But that decision is not a universal law, but an arbitrary rule that can theoretically be changed or broken. In fact, that’s what many other developers have done, taking the Bitcoin code, modifying or copying it, and creating other alternative cryptocurrencies, called altcoins.

So Bitcoin has no monopoly on scarcity, nor on popularity. In fact, it is the most popular and valued cryptocurrency, but it also has a lot of competition. In fact, many Bitcoin buyers sell them to make a profit and then buy altcoins hoping for better returns. Just like you sell your gold to buy silver, copper or plastic. Makes sense? Maybe yes, maybe not. What is clear is that Bitcoin is not as scarce as it seems, but an illusion created by the code.

Bitcoin and altcoins are like a dancing couple moving to the beat of music. Sometimes, they synchronize and take coordinated steps. Other times, they separate and do individual pirouettes. But always, they influence each other with their energy and enthusiasm.

Bitcoin is the leader of the dance. He sets the pace and draws attention. When Bitcoin is happy and optimistic, it will go up in price and make the music louder and happier. After that, altcoins got their optimism and also increased in price. Bitcoin seems to be telling them: “Come on, join me, it’s good.”

But when Bitcoin is sad and pessimistic, it lowers the price and makes the music slower and sadder. Then, the altcoins got their pessimism and went down in price as well. It’s as if Bitcoin told them: “Leave me, go away, it’s bad.”

Therefore, as already said, Bitcoin and altcoins have a complex and paradoxical relationship. On the one hand, they are competitive. Everyone wants to be the best and the most appreciated. On the other hand, they have a correlation. Each depends on the other and benefits from its success or failure.

In short, Bitcoin and altcoins are like a dancing couple moving to the rhythm of music. Sometimes, they get along and have fun. Other times, they get along and get angry. But always, they need each other and help each other.

Of course, Bitcoin has an ideology and a revolution behind it. It is the leader of cryptocurrencies and the one with the most fame and prestige. But it also has its flaws: it is (comparatively) boring, slow, expensive and scarce.

Altcoins are like adventures that everyone wants to try. They are attractive, fun, fast, cheap and abundant. They have an innovation and variety that sets them apart. They are the followers of cryptocurrencies and provide the most risk and opportunity. But they also have their problems: they are insecure, unchangeable, unknown and copied.

So people, no matter how much they say they love Bitcoin and believe in its cause, what they really want is to make money. And if another cryptocurrency offers you a bigger profit than Bitcoin, don’t hesitate to sell your Bitcoin and buy another currency. Is he loyal? Probably not. Does it make sense? May be. What is clear is that price is king. And the king ruled. Or not?

Clarification: The information and/or opinions expressed in this article do not represent the views or editorial line of Cointelegraph. The information presented here should not be considered as financial advice or investment recommendations. All investments and commercial activities involve risks and it is the responsibility of each person to do their due research before making an investment decision.