Suppose one is new to bitcoin and has recently invested in bitcoin for about 6 months or more. This time was the craziest time for an investor. Where one has witnessed heart-stopping drops and many steep climbs, experiencing this kind of ups and down really thrills investors. It is correct to say that it may be painful for investors when some investments wipe out their wallet holdings. All the coins in the crypto world have ups and downs, so what makes bitcoin different? How can investors assume the future value of coins? If you are new to bitcoin, here’s an easy guide to the BTM users.
Bitcoin was the first decentralized currency that significantly differed between bitcoin and other virtual currencies. After Bitcoin, many decentralized coins captured the market but still, bitcoin is a king among all. None of the other coins affects the market, but as soon as bitcoin prices rise or fall. Bitcoin locked in more and more investors into it as time passed. Bitcoin has an extensive network that other currencies are following it. The investors use the network optimized toward network standards. One will go with the most grown network in the world.
Features that make bitcoin better than other cryptocurrencies
Most considerable market capital
Bitcoin is one of the coins that hold the most significant market capital of about $1.2 trillion or even more, which is about 60% of the total market capitalization. Bitcoin is the most traded currency. Over about $40 trade is made using bitcoin. This volume shows that this is a highly liquid and growing asset, due to which bitcoin demand continued to grow. Many of the alternate virtual coins were made to catch bitcoin. Alternate coins are highly likely to compete, but eventually, they all fade away due to the firm and grown bitcoin market. Many altcoins were introduced with solid fundamentals to catch bitcoin, but they all failed.
Many investors invest money in bitcoin for the long term, and some invest in bitcoin for the acceptance of bitcoin worldwide as a mode of payment. There is always a debate on how to see bitcoin as an investment or for any future utility. Bitcoin can be stored or traded to earn profits and is also accepted as a mode of payment worldwide. The demand for bitcoin was from the day it came into existence, but more institutional and individual investors have joined bitcoin in recent years or less than two years. In addition, if more investment is made in bitcoin, it will create credibility and adoption of bitcoin worldwide by many major economies. One more factor that makes bitcoin popular among other currencies is it does not fade away like the other currencies during market crashes.
Limited supply
Another reason for choosing bitcoin over other currencies is its limited supply of 21 million. Whereas other virtual currencies do not have a limited supply which can lead to a sudden excess flow of currencies into the crypto market and cause a price decrease. Bitcoin always created demand due to its limited supply, and this feature makes bitcoin unique from other currencies.
Irreversible transactions
Bitcoin transactions are permanent transactions once the transaction is made that are permanent and immutable. Any other central medium can edit the information and claim that the money never existed. Can’t do it in bitcoin transactions because the base used by bitcoin is blockchain. Blockchain records transactions into blocks and in a public ledger. The transaction, once recorded, can’t be changed or edited by any central authority. Bitcoin does not require any central financial authority to regulate its transactions.
In practical terms, we can say that only the currencies with potential stay long in the market; other short-run currencies have a lot of noise in the market but suddenly disappear. Because of the decentralization, huge growth network, etc., is the reason for choosing bitcoin over other currencies. There is not any virtual currency that could ever replace bitcoin’s dominance. Shortly the bitcoin craze will rise because there will be a limited supply and a massive demand for bitcoin. Those who are holding bitcoin at that time will not trade it due to increasing prices.
On the other hand, some of the features can be dangerous virtual currencies, like what if your investment gets wiped off? You don’t have anything to do. Complete decentralized not only means a good idea to transfer funds anonymously. So taking both ends together, we must do complete research before investing.
