Dr Crypto

  Bitcoin dominance is a frequently reported item; however, usually, it is not available for download from must APIs.   Bitcoin dominance represents the bitcoin total market capitalization as a percentage of total crypto market capitalization. Generally, total crypto market capitalization is hard to calculate since the number of cryptocurrencies and tokens varies over time.  In the chart below, I calculate total crypto market capitalization using 7,500 cryptocurrencies and tokens downloaded (daily) from CoinGecko.com.  The chart shows that Bitcoin's dominance is decreasing.  This suggests that other investors are investing heavily in other cryptos like Ethereum and Solana.  Part of Bitcoin's dominance decline can be due to the fact that it is more of an asset than a currency since Bitcoin's blockchain can not be used to handle a large number of transactions quickly. This is why cryptos like Cardano (ADA), Ethereum, and Solana are extremely important. O...

 A popular model touted by "crypto-influencers" is the logarithmic growth curve (LGC).  This model has been used to predict future bitcoin prices because the model appears to track bitcoin's price -over time- well.  Financial influencers use the model with growth bands to explain how bitcoin's price behavior changes over time. I have included two different (yet simple) LGCs. I generated these charts using data from Quandl/Nasdaq.   The first chart shows the actual price of bitcoin paired with the fitted (predicted) bitcoin price from the LGC model.  While there are large differences between the actual and fitted bitcoin price, influencers contend that the LGC tracks bitcoin's price well. The second graph shows the price of bitcoin with different bands.  In this graph, influencers point out that at the beginning of bitcoin's life it fluctuated between the orange and teal bands.  After 2016, Bitcoin now fluctuates between the orange and red bands. T...