BitCoins is a plane where all the other cryptocurrencies travel

If we were traveling on the same plane and I asked you at what speed the pilot is moving, what would you answer?

Every time we appreciate a movement, we do it with respect to a point in the space that we consider fixed. Usually when we do not mention it, we are implicitly taking the point of our position as an observer, which may raise doubts about how to answer the previous question.

If we assume that the pilot is driving, sitting in front of the ship (where it should be), then we will say that he or she is at an invariable distance from any object or person that is on board the same plane. However, it's clear that if we were standing on the ground, the same pilot would be moving at the speed of the plane, since now the reference point has changed.

Something very similar happens when we refer to cryptocurrencies and market fluctuations. If you have not noticed yet, I invite you to pay attention to the fluctuations that BitCoin has and compare them with those of the other cryptocurrencies, any of them. You will notice that each time the BitCoin rises or falls with respect to the dollar, all other currencies accompany the movement in similar percentages.

What is happening is that we, the observers, are standing "on the ground" and we take as an implicit reference point the value of the dollar, because it is the currency with which we put prices to the products and services that we consume daily. In this context, BitCoin would be like an airplane in which the other cryptocurrencies are traveling. Every time the plane goes up, passengers go up as well. And when it goes down, so do the passengers.

Now let's place ourselves in another place as observers, let's say we could go traveling on that plane. Being there, we can completely forget how close or far we are from the earth (or in the analogy, of the dollar). Only small movements relative to the airplane matter, like going to the bathroom and return.

So, to know if a particular currency (other than BitCoin) is going up or down, what you have to appreciate are the movements relative to BitCoin and not the dollar.

Why does this effect occur? Clearly it is not the product of a single factor, but one of the most important is the fact that most of the currency exchange platforms do not have a virtual wallet of fiat currencies, with BitCoin being the main currency against which the other currencies quote.

Note: the first image was taken from https://www.bitvestira.com and the second one it's a composite image taken from https://coinmarketcap.com/

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