Increased Supply of Altcoins Will Depress Bitcoin, Says St. Louis Fed Report

Increased Supply of Altcoins Will Depress Bitcoin, Says St. Louis Fed Report

As it is known, crypto-supporters (bitcoin bulls) widely believe that the increase in the capped supply of all cyber-coins will boost bitcoin’s value to go up. At the same time, naysayers or bitcoin bears say the opposite — that it will drop. Meantime, researchers under the aegis of St. Louis Federal Reserve Bank (USA) found out that therefore BTC’s value will decrease.

What If There Are More Altcoins?

Recent research by the Federal Reserve Bank of St. Louis shows that the generation of rival bitcoin pals might suppress all existing coins, including BTC, and make their prices lower. Also, the researchers concluded that the future of bitcoin's and its brethren’s value is more likely to remain tied to two extremities — either the value of cyber coins will go down or up.

However, it is not only the existing cryptos which will suffer the down pressure from novel coins. Researchers imply that the American dollar price of bitcoin will also be related to its altcoins-tied exchange rate.

The report states that bitcoiners anticipate BTC to appreciate in relation to its pals. Or bitcoin’s market cap all remain constant in relation to the worldwide crypto market cap. However, it’s not the case, the researchers found.

They concluded that the growing supply of bitcoin’s pals will make the price of the latter, as well as its market cap, subdued. Yet, bitcoin is not likely to plunge to zilch as it has primary value. It comes from the demand for its decentralized database and access which requires no permission.

Bitcoin Era Success Story: Teen Hits Jackpot With Crypto Trading
17-Year Old Hits The Jackpot With Cryptocurrency Trading Venture The news media has been swept up in a tornado with the latest news of a...
What Everyone Should Know About Tokenization
Blockchain tokenization is a means of digital representation of a right and can be done with the help of a ledger. This can be a right to asset...
Bitcoin’s Volatility? In 2017 BTC Was More Stable Than In Its Early Days
Despite some 30% crashes in 2017, bitcoin managed to increase by total 1,400% last year, conquering the world’s financial stage. Banks are becoming...
Stablecoin - Everything You Need to Know
What Is A Stablecoin? You must have heard of cryptocurrency which has been the recent talk of the town. Well, stablecoins are a form of...
Gold Pulls Bitcoin Investors From BTC, Says Van Eck Associates CEO
In 2017-2018 bitcoin bit gold as bait for investors. However, the situation is expected to change in 2019 as investors already hope more for the gold...
Crypto-Supporter Milne Said Bitcoin’s Only Ledger to Last 100 Years
As bitcoin continues trading approximately Twitter thread entrepreneur Alistair Milne forecasted that the upcoming cyber money bull will decide which...
Increased Supply of Altcoins Will Depress Bitcoin, Says St. Louis Fed Report
As it is known, crypto-supporters (bitcoin bulls) widely believe that the increase in the capped supply of all cyber-coins will boost bitcoin’s value...
BTC Market Cap Will Surpass $7 Trillion Gold Cap, Say Winklevoss
Recently, Tyler and Cameron Winklevoss, world-known entrepreneurs and early supporters of cryptos, have taken part in Reddit’s traded at $4,061 and...
Crypto-Community Celebrates Bitcoin’s 10th Birthday
This year’s January 3 marks a decade since the first bitcoin block was generated by Satoshi Nakamoto. Back then, in 2009, this person (or group of...
Best Bitcoin Memes in 2018: ‘Hodling’ and Crying
2018 has not been an easy year for bitcoin, not at all. Whereas it left 2017 at the price of $10,000, it started the new year in a pretty bullish...