I believe them to be fundamentally different. One serves an architectural purpose (ETH). The other has settled into an asset role with limited functional use (BTC)
Yet their values ride up and down together – linked like they are the same. Is it just the general masses not understanding? Or am I not understanding?
Posted by xagds
6 Comments
Who knows
Market forces overpower their individual differences. To 99% of people, “crypto” is one thing.
The networks are different, but the token holders are not.
For the same reason that most stocks are highly correlated to the broader stock market.
There is systemic market risk that is shared across all crypto assets.
AKA beta.
Thanks all. It seems as simple as it appeared on the surface. Which is both unfortunate and fortunate for ETH I suppose.
I suspect they will carve their own paths a few more years down the road
Think about it this way most crypto holders who own a significant amount of crypto hold majority bitcoin (if they are smart). Therefore when ur king is getting hit everything else will fall with it when sentiment declines.