Anyone who trades is looking for an edge. Often times the answer to predictable volatility is right under your nose. My professor in economics told me that economics is common sense math. I do quite agree and I feel as if economic law is a good reference point when making short and long term decisions in the crypto-trade world. A video by one of the long time bitcoin investor, Roger Ver briefly goes over such concepts.
On this Audio Roger Ver clearly points out the faults in bitcoin and how alternative currencies are bridging the gap between user-ability, feasibility, and anonymity. He name a few alt-coins that have done very well over the past months. Zcash, monero, Dash and Ether all show a lot of promise as well as shorter wait times and lower fees. Roger displayed several different examples of the relationship between bitcoin’s rising transaction fees and the declining coin market cap of bitcoin. There is certainly a correlation. To say it is a direct or indirect cause of one another is subjective.
There are ways that can be observed by using a law of economics as Roger states. The value of substituting a good will rise when the value of main goods rises. The value of substituting good will rise even more so when the other options loose it’s perception of value. In bitcoins case, alt-coins seems to rise as bitcoin falls which makes sense naturally. This is a form of macro predictable volatility. To be on the safe side, when investing, We should always diversify our portfolio. If you are deciding to experiment outside of bitcoin try to spread your money throughout the popular alternative currencies that provide a good user experience. We are still on the genesis of the crypto-currency revolution. We choose, as a community, what we want and how we want it by majority preference.