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.

Our top trading bots

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.

Chip giant Qualcomm launches $100M Metaverse fund
Multinational software and microchip giant Qualcomm Incorporated has launched a $100 million Metaverse fund to back extended reality (XR), artificial intelligence...
Ethereum Merge testing on Kiln mostly successful, save for one minor bug
On Tuesday, Ethereum (ETH) developer Tim Beiko tweeted that Kiln successfully passed the Ethereum Merge, with validators producing post-merge blocks containing...
DeFi detective alleges this ‘suspicious’ smart contract code may put dozens of projects at risk
According to famed decentralized finance (DeFi) detective Zachxbt, 31 nonfungible token (NFT) projects may be at risk due to “suspicious code.” In a lengthy...
Former Cisco employee launches DAO to buy Denver Broncos
A new decentralized autonomous organization (DAO) has been formed to raise money in an effort to purchase the Denver Broncos U.S. National Football League...
Top 5 cryptocurrencies to watch this week: BTC, LUNA, ATOM, ACH*, FTM
Bitcoin (BTC) fell close to $34,000 on Jan. 21, which reflects a 50% decline from the $69,000 all-time high made on Nov. 10, 2021. Altcoins also could not...
The political Santas and Grinches of the crypto industry in 2021
2021 was a huge year for the crypto industry. A few years ago, our elected officials probably hadn’t even heard of crypto before, let alone had an opinion...
Price analysis 12/20: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE
Bitcoin (BTC) continues to lose ground in December, a signal that traders may be locking in their gains before the end of the year. The lack of a Santa...
Derivatives DEX dYdX beats out Coinbase’s spot markets by volume amid China FUD
Decentralized derivatives exchange dYdX has seen a surge in trade activity as concerns surrounding a renewed Chinese crypto crackdown have circulated this...
SEC boss says DeFi platforms are ‘highly centralized’ and will need to register
Gary Gensler, chairman of the U.S. Securities and Exchange Commission stated that DeFi is highly centralized in certain aspects and urged projects working...
ZKSwap’s V2 mainnet is set to go live tomorrow
Decentralized cryptocurrency exchange ZKSwap has announced that its upcoming V2 mainnet will go live on July 28 via the Layer 1 Ethereum mainnet. A layer...
‘Largest Bitcoin event in history’ Bitcoin 2021 kicks off in Miami
Bitcoin 2021, the biggest Bitcoin event in history with a sold-out crowd of at least 12,000 attendees in Miami, is kicking off with some of the world’s...
Multi-billion dollar investment trust backs Kraken ahead of possible listing
The $5.3 billion dollar investment trust RIT Capital Partners has acquired a stake in leading crypto exchange Kraken. The London based-trust, formerly named...
XRP Jumps 20% As Investors Gain Confidence
Investing.com - XRP was trading at $1.60283 by 03:04 (07:04 GMT) on the Investing.com Index on Tuesday, up 20.11% on the day. It was the largest one-day...
Bitcoin price slides 5% as second day of losses costs Ethereum $2K landmark
Bitcoin (BTC) extended its price drop on Wednesday amid warnings that excessive long positions needed to be flushed out to allow for fresh gains. BTC/USD...
Monetize Your Posts With FRIENDZ
At the moment it is difficult to find a person who does not have an account on Instagram, Facebook or another social network. Users post millions of photos...