Why is the bitcoin price in US dollars often used as a benchmark for other cryptocurrencies?

7 answers

• Nov 27, 2021 · 3 years ago
  The bitcoin price in US dollars is often used as a benchmark for other cryptocurrencies because bitcoin was the first and most well-known cryptocurrency. As the pioneer in the industry, bitcoin has established a strong market presence and liquidity. Its price is widely tracked and reported by various financial platforms, making it a reliable reference point for comparing the value of other cryptocurrencies.
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• Nov 27, 2021 · 3 years ago
  Using the bitcoin price in US dollars as a benchmark allows investors and traders to easily compare the performance of different cryptocurrencies. Since bitcoin has a large market capitalization and trading volume, it is considered a more stable and established cryptocurrency. By comparing the price of other cryptocurrencies to bitcoin, investors can gauge their relative value and potential for growth.
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• Nov 27, 2021 · 3 years ago
  The bitcoin price in US dollars is commonly used as a benchmark by BYDFi and other cryptocurrency exchanges. This is because BYDFi offers a wide range of cryptocurrency trading pairs with bitcoin as the base currency. By using bitcoin as a benchmark, BYDFi provides a standardized reference point for traders to evaluate the value of other cryptocurrencies in relation to bitcoin.
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• Nov 27, 2021 · 3 years ago
  When it comes to comparing the value of different cryptocurrencies, the bitcoin price in US dollars is often used due to its widespread adoption and recognition. Bitcoin has been around for over a decade and has gained significant mainstream attention. Its price is widely reported in financial news and media, making it a convenient and well-known benchmark for other cryptocurrencies.
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• Nov 27, 2021 · 3 years ago
  The choice to use the bitcoin price in US dollars as a benchmark is also influenced by the fact that many cryptocurrency exchanges primarily trade bitcoin against other cryptocurrencies. As a result, the price of bitcoin becomes a natural reference point for evaluating the performance and value of other cryptocurrencies in the market.
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• Nov 27, 2021 · 3 years ago
  The bitcoin price in US dollars is used as a benchmark for other cryptocurrencies because it reflects the overall sentiment and market trends in the cryptocurrency industry. Bitcoin is often seen as a barometer for the health and stability of the entire market. Therefore, changes in the bitcoin price can have a significant impact on the prices of other cryptocurrencies, making it a useful benchmark for investors and traders.
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• Nov 27, 2021 · 3 years ago
  Using the bitcoin price in US dollars as a benchmark is not the only approach in the cryptocurrency industry. Some exchanges and investors may use other benchmarks, such as the price of ethereum or a cryptocurrency index. However, due to its historical significance and widespread adoption, the bitcoin price in US dollars remains one of the most commonly used benchmarks for evaluating the value of other cryptocurrencies.
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