Hi folks.
I wanted to raise this quick question: while BTC and ETH are powered by the principle of distributed ledgers and cryptography, the two differ in many technical ways and they also differ in purpose. Bitcoin is a so-called currency, while Ethereum is developed as a platform which facilitates P2P contracts and applications via its own currency vehicle. The primary purpose of ETH is not to be a payment solution (to my knowledge).
I sold almost all my BTC, my portfolio is now 80% ETH and it annoys me a little to see how ETH struggles to gain value whenever bitcoin's price drops (actually I am exaggerating a little, since January 1st ETH is doing alright compared to BTC but still you get my point).
Any opinion welcome.
Thanks.
I feel it is due to most of trades happening in BTC pairs. Consider the example of BTC at 10K and ETH at 1K. The price of ETH would be 0.1 BTC, but when BTC goes down to 8K, each ETH gets you 0.125 BTC. Most people in crypto feel that is a good deal and use the opputunity to get more BTC. But what it invalirably starts is a frenzy of people selling, which mostly ends up in a selling spree of ETH and more often than not it brings the price of ETH lesser than before. This applies for all the alts and during each price fluctuation barring few all the alts follow the trend.