Total mess of currency domination detected

Home » ALTCOINS » Total mess of currency domination detected
2018-08-05
Photo: Crash of the cryptocurrencies.
Total mess of currency domination detected

A deep research run by CoinDesk’s analysts revealed systemic defects in cryptocurrency exchange data that experts often use to value the market trends. It turns out that Japanese yen traditionally indicated by CryptoCompare & Coinhills as dominant currency traded for BTC is critically overestimated. The experts collected their own data and figured out that US dollar dominates by a large margin while the popular data aggregator sites until recently informed users about yen domination over 50%.


It appears that most Japanese yen for Bitcoin transactions don’t refer to so called spot trades when actual financial instruments are traded immediately. Vice versa, they involve derivative products which contracts use yen and Bitcoin as underlying assets.

It means that both sides of such transactions call on the Bitcoin price but, in fact, there is no move of any assets. On one hand, derivative contracts don’t break any laws, on the other hand, the analytics sites mix up derivative and spot trading and, no doubt, it makes data rather misguiding.

CryptoCompare and Coinhills are extra prestigious data resources. They are wide-cited by Bloomberg as well as the Wall Street Journal. And while they dared to combine different types of volume for the biggest exchange of Japan, yet they both until recently neglected dollar-denominated derivative trades, for instance, on Bitmex.

In this case, it is absolutely incorrect to compare yen and dollar volumes, since yen totals include derivative instruments whilst dollar totals don’t. The homogeneous classification proposed by CoinDesk’s experts completely changes the picture.

Actually, after CoinDesk reported about the flaws, CryptoCompare transformed the approach and for now the site performs dollar traded for Bitcoin as more popular compared to yen.

CRYPTOCURRENCIES
  • bitcoinBitcoin$5,024.96
  • ethereumEthereum$163.76
  • rippleXRP$0.323197
  • tetherTether$1.01
  • eosEOS$5.31
  • stellarStellar$0.112970
  • litecoinLitecoin$77.68
  • cardanoCardano$0.081749
  • tronTRON$0.026093
  • moneroMonero$66.97
  • iotaIOTA$0.313585
  • nemNEM$0.063691
  • dashDash$119.82
  • neoNEO$11.06
What is Cryptocurrency? How to Use, the Future of Crypto, the History of Bitcoin
Cryptocurrency market is actively developing and expanding. This relatively new industry is causing a lot of questions and attracting a huge number of investors, businessmen and ordinary people. “What is the future of cryptocurrency?”, “How to choose cryptocurrency exchange?”, “How to sell Bitcoins?” “What about cryptocurrency mining”? Millions of people read cryptocurrency news everyday and […]
2019-04-08 0 48
What is Bitcoin?
The cryptocurrency industry is becoming more and more popular all around the world. Despite the fact that there are more than 1000 different cryptocurrencies and the number keeps growing, cryptocurrency is often associated with Bitcoin. Bitcoin is the first modern cryptocurrency in the world; it attracts thousands of users and investors from different countries. Millions […]
2019-03-20 0 46
Bitcoin, Ethereum, Ripple, Monero, Dash, Tron: major differences and features
Investors see different names of cryptocurrencies and the movement of their courses, but typically don’t even know why the digital coins are so popular. Most of us have already Googled “How to buy Bitcoin” or “How to sell Ethereum”. Cryptocurencies are becoming more and more popular: Bitcoin price is fluctuating and its value is not […]
2019-03-19 0 45
What is Blockchain?
“Giving users easy access to many different kinds of digital assets on the blockchain and, particularly, tokens that are linked to assets in the real world, is crucial to seeing blockchain adoption reach the next level, and I applaud Digix Global’s initiative in being the first of many such projects to successfully launch” – Vitalik […]
2019-03-06 0 43
© 2017–2018