Bitcoin is the reigning king of the crypto world. Find out how Bitcoin maintained its lead in the crypto market.
Bitcoin is the world’s largest cryptocurrency in the market, accepted as a means of payment and a store of value globally. It has independently inspired a global crypto industry worth over $3 trillion. Many investors describe Bitcoin as the reserve currency of the crypto world, with the most significant influence over the entire market.
Bitcoin has increasingly gained immense value despite volatility risks and regulatory pressures. Its adoption has grown exponentially over the past decade, attracting governments, institutional investors, traders and individuals from around the world. So how did Bitcoin become so successful? Here’s why Bitcoin is the leading cryptocurrency.
Crypto Industry Pioneer
Satoshi Nakamoto, the anonymous creator of Bitcoin, introduced it in 2009, as an alternative transaction currency, unrelated to any government or central authority. While virtual tokens existed long before Bitcoin, none of them could function as a decentralized transaction currency. Bitcoin introduced blockchain technology which allows it to function as a decentralized means of payment.
Its success has seen the proliferation of several other cryptocurrencies currently competing with it. However, it took a while before they could launch and start working. This allowed Bitcoin to gain significant market share long before other virtual currencies. Additionally, its pioneering status impacts a more substantial competitive advantage and a perception that Bitcoin is superior to other cryptocurrencies.
Largest market capitalization
Bitcoin has the largest crypto market capitalization, although its supply is limited to just 21 million tokens. Reserves are held by institutional investors, corporations, businesses and individuals around the world. Bitcoin’s larger market capitalization makes it more accessible to investors and the general public than other cryptocurrencies. While several cryptocurrencies exist in the market, you can hardly find a crypto investor without Bitcoin investments.
Apart from Bitcoin’s largest market capitalization, it also boasts the highest trading volumes on crypto exchanges in the world. These characteristics induce higher liquidity, which makes it easier for users to exchange the tokens for goods and services or other assets without loss of value. Automated Crypto Trading Platforms like Bitcoin Era app are reputable crypto exchanges where you can trade cryptos and easily process bitcoin payments.
Bitcoin introduced the new blockchain technology, an open software that allows innovators to develop various projects around Bitcoin. Several cryptocurrencies have used the same technology and even copied Bitcoin’s ideas to support their operations. This makes other cryptocurrencies heavily dependent on Bitcoin’s success.
Although Bitcoin does not own the blockchain, it pioneered the technology that now supports all other cryptocurrencies. Also, many cryptocurrencies are Bitcoin imitators whose survival depends on Bitcoin’s performance. This means that several virtual currencies would cease to exist if Bitcoin failed. Even investors use Bitcoin price movements to predict the prices and market conditions of other cryptocurrencies.
Better accessibility and robust applications
Like other cryptocurrencies, Bitcoin is a decentralized digital currency that users can only acquire and transact online. However, it is more accessible than other virtual currencies. One of the reasons for this is that governments, international corporations, traders and individuals around the world hold it. Additionally, there are many ways for businesses and individuals to acquire Bitcoin.
Bitcoin also has more real-world uses than other cryptocurrencies. It primarily functions as a means of payment and a store of value. However, Bitcoin’s blockchain technology is also a revolutionary invention, driving innovations in various global economic sectors, including finance, manufacturing, healthcare, e-commerce, travel, and retail. Most cryptocurrencies are limited to micropayments only.
Bitcoin is undoubtedly the most successful crypto, promising to revolutionize global finance. It has maintained a clear lead in the industry mainly due to its pioneering status, largest market capitalization, superior technology, and robust real-world applications.
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How Did Bitcoin Become The Main Cryptocurrency? – Tech Tribune France
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