Cryptocurrency is now a highly expanded field, but still, bitcoin rules all. Altcoin, another popular category of cryptocurrencies, has a lesser market cap than bitcoin. Click this link to get the best features a bitcoin trader can get. Bitcoin holds more than 50% of the cryptocurrency market cap. Undeniably other cryptocurrencies and bitcoin hold distinction with one another, all the more technically, altcoins lead bitcoin, but bitcoin has always been the investors’ first choice. Why?
Let us look into the reasons behind bitcoin staying on top
1. Public Demand for Bitcoin:
After the boom of 2009, Bitcoin was initially introduced as a future payment system. At that time, bitcoin was not very popular, but people were eagerly waiting for its arrival. Slowly it grew to be a payment system where almost anyone could buy goods and services using bitcoin using online computer software. This digital currency became a hit among investors, who realized its rising value over time.
2. Simplicity of bitcoin:
Mining bitcoin is simple and easy. The value of bitcoin is also simple; it depends on public demand. There is massive scarcity in the mining of bitcoins, as compared with traditional mining, where fewer resources are available to the vast population. Mining this cryptocurrency can be carried out at home with a computer and internet connection by solving challenging mathematical problems set by the bitcoin software.
3. No Third-party Involvement in Bitcoin Transfers:
There are no third parties involved in transactions made through bitcoins. This is what makes bitcoin the safest transaction mode. There are no safety measures for transactions made with fiat currency, but the transactions made through fiat currency are secure because of regulations, whereas BTC incurs decentralization.
4. Security and Safety of bitcoin:
Since bitcoins act as a digital wallet that one carries around in your pocket, they may seem unsafe as their private key should not be public to anyone. But this private key should be under secure storage to protect your bitcoins. In addition, all transactions made through bitcoins are encrypted, so there is no possibility of fraudulence or hacking.
What makes bitcoin a success is that it is a digital currency, as most people in this age have adapted to being connected through the internet. Any particular region or country does not bind it. Therefore, different people and institutions could use Bitcoin for purchasing goods and services that accept bitcoins as a payment mode.
5. Reduction in expenses of bitcoin transactions:
As stated above, there are no third parties involved in any transactions made through bitcoins, so there are no transaction fees to pay while making payments with bitcoins. However, while using traditional banking services and making transactions with bank accounts compared to other cryptocurrencies, there are processing charges to pay. These charges are not applicable when you make payments with bitcoin, as you have to pay only at the time of purchase.
6. Bitcoin is decentralized:
Centralized systems maintain a record of all data stored on a private server, where people don’t have access to their data. However, the bitcoin software is open source and freely distributed worldwide, so anyone can access it from anywhere and at any time of the day without having any restrictions imposed on them by an authority or government.
7. First Mover Advantage of bitcoin:
Because bitcoin is the first digital currency, it scores over all the other cryptocurrencies. The alternative digital currencies try to copy bitcoin, but none of them can match the popularity of bitcoin. Though there are several cryptocurrencies out there, bitcoin has outperformed all alternative cryptocurrencies by such a vast margin that it virtually has become a world currency.
9. Bitcoin commands the price of other cryptocurrencies:
The bitcoin price has never fallen below that observed in January this year. The price of bitcoin is not much different from the volatility observed when one of its properties rises considerably. This rise has been seen after bitcoin came under criticism by many people and organizations.
10. Bitcoin is the base model of cryptocurrencies:
Bitcoins are currently making headlines all around the globe, and some cryptocurrencies are still at a developing stage. Hence, this kind of digital currency has much more to be achieved. A lot is there to improve the security and safety of other cryptocurrencies system worldwide. But bitcoin is a base model on which cryptocurrencies are based.