This was a quiet week for news, with many articles still focusing on predictions for next year. Perhaps the most interesting topics is Cryptsy, one of the oldest Alt-Coin exchanges. Rumors around the blogosphere have been skeptical of Cryptsy for some time now, with people complaining about withdrawal delays and concerns over a possible SEC investigation.
We have mentioned the allegation of an SEC investigation before, which is adamantly denied by Cryptsy, but let’s take this opportunity to analyze what such an event would do to the price of Bitcoin.
- We can clearly see that the gap between the market cap of Bitcoin and Alt-Coins has been steadily increasing over the past few years.
- Miners tend to focus on Alt-Coins so they can earn a better return than mining Bitcoin, although they tend to sell for bitcoin in the end.
- There are still some speculators and active traders left in Alt-Coins, but that trend is starting to wear off. With regulators starting to take more of an interest in the Bitcoin space, their numbers may be decreasing.
The end result will most likely be positive for Bitcoin. In order for traders to get out of this game of Alt-Coins,