At the times of the current crisis, several groups around the world are using Bitcoin to raise funds for medical equipment and other emergency medical requirements. They are securing their savings to do international businesses. Even at these times of crisis, the oldest cryptocurrency is still dominating the crypto market. Bitcoin still represents 64% of the crypto market.
Bitcoin is known to be the king of the crypto market. It is because bitcoin has always proven to be most beneficial for those people who seek more than speculation and experimentation. Bitcoin is not something to be considered as a lifestyle brand; nowadays, bitcoin has become the new face of money. It has become a financial tool that doesn't get affected by one company. Even though thousands of new projects will be launched, bitcoin will still remain stable in the market and rule over it.
Why does Bitcoin have value?
The blockchain-based currency Bitcoin facilitates fast, secure and anonymous money transfers over the Internet with a transparent set of rules and is a viable alternative to fiat currency controlled by central banks.
Although investing in Bitcoin seems complex, it is easier than you might think. Exchanges and wallets are becoming more legitimate every day, and the ease of buying bitcoin is increasing.
A currency can be helpful if it is a store of value, or, to put it differently, if its value is reliably stable over time and does not depreciate. Commodities and precious metals have been used as payment methods in many societies throughout history because they were considered to have relatively stable values.
Aspiring Bitcoin investors need several things. If you are using a Know Your Customer (KYC) platform, you will need to get a cryptocurrency exchange account, provide personal identification documents, and make payments. Having your own wallet external to the exchange account is also recommended. These payments can be made using a bank account, debit card, and credit card. P2P exchanges and specialized ATMs are also ways to obtain Bitcoin.
Society eventually adopted minted currency as an alternative to carrying around cumbersome amounts of cocoa beans, gold, or other early forms of currency. Although minted currency had little depreciation risk, it was made of metals that retained value over long periods and had a long shelf life, making them reliable stores of value.
Nowadays, minted currencies typically replace coins with paper money, which has no recurring value. Individuals may use electronic currency or methods of payment even more frequently. Depending upon the type of currency, it may be based on the concept of "representative," which means that each coin or note can be directly exchanged for a particular commodity or amount.
However, the fact is that more and more countries have left the gold standard as a result of concerns about runs on federal gold supplies, thus making many global currencies a form of fiat currency. Rather than using a commodity as a guarantor for its currency, governments and individuals use fiat currency because they believe that third parties will accept it.
Fiat currencies are the majority of major global currencies today. Fiat currency has proven to be the most durable and least prone to deterioration or loss of value over time for many governments and societies.
Bitcoin as a Currency
1. Limitations:
There are 21 million bitcoin in circulation. It is impossible to have more than 21 million Bitcoin. For many experts, this scarcity, or limited supply, is what makes Bitcoin so valuable.
2. Copying is forbidden:
The Blockchain technology behind Bitcoin means that it is impossible to counterfeit it. As a result of the Blockchain, the original rules continue to be followed, and the system continues to operate as intended.
3. Easily portable:
There is no doubt that bitcoin can be transported easily. Transferring money between exchange accounts or digital wallets is easy.
4. Easily transferable:
Transferring bitcoin to another user or merchant is relatively simple. In order to send Bitcoin to someone, all you need is their public key (wallet address).
The factors listed above make Bitcoin stand out as a type of currency, but they do not explain its exponential price growth or its appeal as a store of value. Since the American dollar will see far more value growth in an investment vehicle than saved as cash, cash savings aren't considered one of the best investment strategies. Bitcoin's value makes it one of the most valuable cryptocurrencies.
Buying Bitcoin: Things to know
Unlike traditional assets like gold, there is no inflation risk associated with crypto-currencies.
Furthermore, the current societal and economic climate has resulted in people holding less cash and being less vulnerable to market fluctuations. In recent months, public companies have begun converting their cash treasuries to cryptocurrencies. Investors in Bitcoin are concerned about privacy and security. Although bitcoin cannot be touched, having a lot of them is not a good idea. If you use a public address, anyone can view the balance. Thus, the majority of investments should be kept at addresses that are separate from the addresses used for transactions.
Transactions on the Bitcoin blockchain are confidential but not anonymous because only the users' public keys appear next to the transactions. A Bitcoin transaction is more transparent and traceable than a cash transaction, but it can also be anonymized.
That is one of the most important distinctions. Scientists and the FBI claim they can trace Bitcoin transactions to other accounts, such as a digital wallet used by the users.
Top 10 Reasons Why Bitcoin is Still King of Crypto
1. Head start
Over the past decade, cryptocurrency has increasingly become a part of everyday life. Due to Bitcoin's open-source nature, developers can customize it and create a new coin. It is impossible to ignore Bitcoin's dominance of this industry regardless of your opinion. Cryptocurrency industry pioneer bitcoin can't be denied. From here on out, it has the advantage of being the first. BTC was already being mined and used by thousands when mined for the first time in 2009.
In addition, more than 8 million bitcoin were circulating when the second cryptocurrency was launched, with a market cap of more than $100 million. The market percentage was large before, but at the current 50%, it is still incredible. Nobody has yet come close to it. We will tell you why bitcoin is still the king of all cryptocurrencies if you are interested. It means most of the currencies are based on Bitcoin.
2. Acceptance and Mainstream Status
Today, bitcoin serve as the model cryptocurrency and is regarded as digital money. New users are reflected in this by their investments in bitcoin, as they make their initial investments exclusively in bitcoin. The game's main player remains volatile despite its infamy of volatility and erratic jumps and falls one cannot predict or follow. In addition, it is now accepted by numerous online stores, as well as physical stores, due to the mainstream angle that has been taken on it.
Several well-known techies, celebrities, and businessmen have made bitcoin an integral part of their lives and actively invest in it. Support from the world's most famous individuals is one of the best things you can have.
BTC enjoys the highest level of brand recognition. If you are willing to challenge the status quo and accept Bitcoin, your company is a status symbol. Many companies have benefited from it, whether for marketing purposes or to keep up with the times.
3. Innovation around Bitcoin Is Permanent
Despite claims that Bitcoin's technology is ageing, the technology has by no means become obsolete. They claim bitcoin makes heavy use of electricity due to its Proof-of-Work system. Bitcoin's value arises from the energy required to create new bitcoin. Slower transactions and scalability of the network are legitimate concerns. Several innovations, such as sidechains, rootstock, and lightning networks, will help Bitcoin remain #1.
Considering the open-source nature of the Bitcoin ecosystem, an altcoin adds can be integrated into Bitcoin one day. Since Bitcoin has many users on its Blockchain, it is the only cryptocurrency facing such scalability issues. Bitcoin continues to innovate because of the growing community and number of companies building services on top of the Bitcoin Blockchain. Companies will offer features that cryptocurrencies offer, but Bitcoin does not, such as those that are particularly useful. Bitcoin's entire ecosystem needs to be considered, not just its Blockchain.
4. Bright Future
More importantly, this speaks volumes about the king's potential of all cryptocurrencies and the belief of those in the tech industry and finance. According to some, Bitcoin has no limits to its potential. It could have already reached much of it if it hadn't been for traditional, conservative financial institutions, governments, and banks. Every aspect of crypto disrupts the current norms of working with money and imposing regulations, which is why many nations have banned it or limited its use.
There is now no stopping the improvement that is slowly taking place. Our reaction to our inaction will lead to being left behind and suffering the consequences. Digital money is the future, and the sooner we get this, the better.
5. Liquidity
All tradable assets, including Bitcoin, require liquidity to remain competitive. A liquid market is deeper and smoother, while an illiquid market causes traders to be locked into positions they cannot get out of easily. The most traded digital currency is Bitcoin, which technically includes any altcoin paired with it. Bitcoin is a reserve currency for the crypto market because altcoin values are generally measured in Satoshis. New users usually buy altcoins by first purchasing BTC. Having liquid markets is essential for the proper functioning of a currency.
Miners can cover expenses, and conversion into fiat is easier for merchants. Serious traders are also able to place large orders when markets are healthy. Rather than inflows to exchanges, there are more outflows. Isolated wallets keep bitcoin away from exchanges, making them illiquid. Despite being a component of the circulating supply, it is not a component of the liquid supply. It is not possible to sell or trade these Bitcoins.
6. The network effect
It is human nature to gravitate to what's popular. Among its participants, money is only valuable if it is used to exchange goods and services. Money is a network effect, as all participants want to trade what they perceive to be valuable. A peer-to-peer transaction network based on cryptography, the bitcoin network operates on the bitcoin protocol. By using bitcoin cryptocurrency wallet software, digitally signed messages are broadcast to send and receive bitcoin, the currency unit. As more users access a network, it becomes exponentially more valuable to the users. Thus, a company or another system has a network effect. Having a strong economic moat is a competitive advantage.
Moreover, cryptocurrency is becoming more popular every day. As a result, different factors contribute to its outcome. An increase in the use of a product or service can result in a network effect that increases its value.
7. Store of Value
Bitcoin does not make sense as a store of value since it is far too volatile to be considered one. Bitcoin has intrinsic value in using mathematics to provide a trusted network rather than being a traditional commodity that can be turned into something useful. As a unique commodity, Bitcoin has never been able to do this before. A new asset class for storing value is emerging - Bitcoin. Due to its limited supply, it is considered a form of digital gold. It is a nice hedge against a failing banking sector for individuals who own bitcoin because they fully control their money.
The only cryptocurrency that has proven to be a good store of value is Bitcoin, which seems to go through bull and bear markets just like precious metals. The market for Altcoins is profitable, but their value has historically plummeted over time. Bitcoin is the currency of choice for serious crypto traders.
8. Security
You cannot hack into and steal bitcoin or other digital currencies during the transactions, nor can you access an e-wallet without the user's unique key.
The Blockchain underpins Bitcoin. Bitcoin uses cryptography to validate transactions using the signatures of volunteers. Bitcoin generally ensures that transactions are irreversible, and it provides strong data privacy protections. Compared to other coins, it is tested and peer-reviewed more often. Blockchain was made possible by Bitcoin, and bitcoin is taking a beating to maintain the ecosystem. The more attacks Bitcoin survives, the more resilient it becomes the data security of Bitcoin is strong. It has more peer review and testing than any other crypto coin. Bitcoin has paved the way for blockchain. It is on the front lines taking a beating for the ecosystem. Every time Bitcoin survives an attack; it becomes more resilient.
Aside from being the most secure cryptocurrency, Bitcoin has the highest hash rate of any proof-of-work coin. In contrast, transactions on the bitcoin blockchain are transparent and can be viewed by anyone using widely available blockchain explorers.
9. Matured Industry
Bitcoin leads to merchant adoption, ATM adoption, exchange adoption, fiat pairing adoption, users' adoption, and wallet adoption. Since Bitcoin has matured more than any altcoin or private bank chain, its value has increased significantly. Since bitcoin is typically exposed to new users before exploring other cryptocurrencies, most start with bitcoin. Millions of dollars in revenue have been created through cryptocurrency and blockchain technology throughout various industries.
Cryptocurrency is maturing in part due to the fact laws are catching up to the new market. Several countries have already begun to clamp down on the market, including South Korea and China and the IRS. The result of maturing markets is regulations. A second sign of the maturing cryptocurrency market is the increasing exclusivity of mining. The mining of Bitcoin used to require no special equipment or much effort. In addition to offering cryptocurrency stocks, major banks are now offering cryptocurrency trading through their platforms, which may indicate how mature the cryptocurrency market has become.
10. Media Attention
Bitcoin prices seem to be driven by sentiment based on media attention in social networks, which a sentimental appetite for information could explain. Whenever you turn on the TV, the web, or read the newspaper, you hear about it constantly. As a result, news coverage is causing negative price jumps in Bitcoin, so informative signals may suppress Bitcoin prices. Accordingly, when positive momentum increases, positive jumps happen, and the asset value increases. Amidst a backdrop of growing, unsteady adoption, the market constantly revises its expectations for bitcoin, which is why exchange rates fluctuate.
Final words
The cryptocurrency market continues to boom despite global pandemics crippling major economies around the planet. The first-mover advantage benefitted Bitcoin as it set the standard for this brand new industry. Bitcoin has experienced a considerable growth advantage over its competitors due to this first mover’s advantage. The Bitcoin community has capitalized on this advantage over the past 11 years. Despite the rise in crypto prices, understand that it's still early to invest in cryptocurrencies. More and more governments will seek to regulate the market, which will lead to cryptocurrencies becoming mainstream. Bitcoin's advantage over its competitors is now more apparent than ever as we enter a new decade. That is why Bitcoin will remain king for many years to come.
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