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

3 answers

• Fajar ShahzadFeb 27, 2023 · 2 years ago
  The bitcoin price in dollars is often used as a benchmark for other cryptocurrencies because bitcoin was the first cryptocurrency and remains the most widely recognized and traded. Its price serves as a reference point for investors and traders to compare the value and performance of other cryptocurrencies. Additionally, many cryptocurrency exchanges primarily trade bitcoin against other cryptocurrencies, making it a natural choice for comparison.
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• Axel Avimael PengaMay 15, 2023 · 2 years ago
  The use of the bitcoin price in dollars as a benchmark for other cryptocurrencies is also influenced by the dominance of the US dollar in global financial markets. The US dollar is the world's reserve currency and is widely accepted and traded. By using the bitcoin price in dollars, it allows for easy comparison and conversion between different cryptocurrencies and traditional fiat currencies.
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• Bálint HorváthJul 12, 2020 · 5 years ago
  As an expert in the cryptocurrency industry, I can confirm that the bitcoin price in dollars is commonly used as a benchmark for other cryptocurrencies. This is due to the historical significance and market dominance of bitcoin. Many investors and traders rely on the bitcoin price as an indicator of the overall health and performance of the cryptocurrency market. It provides a standardized reference point for evaluating the value and potential of other cryptocurrencies.
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