Bitcoin remains the most prominent digital currency despite the growing competition from other altcoins. Please find out the reasons behind its prominence.
In recent years, Bitcoin has outperformed other digital currencies, significantly increasing its share of the broader crypto market with projected growth. Bitcoin is now the world’s largest cryptocurrency, and analysts predict its price will undoubtedly continue an upward trend in the future. Such sentiments have sent many investors rushing to invest in Bitcoin, hoping for better returns when price surge. So, what is it about Bitcoin that makes it more valuable than other altcoins? The following article explores the main reasons behind Bitcoin’s dominance.
Other altcoins existed before Bitcoin but, the latter is the one that proved cryptocurrencies can work. Bitcoin’s feat made it a benchmark for other altcoins as the first successful cryptocurrency. It created the foundation and the model of how cryptocurrencies should operate. Bitcoin’s first mover advantage has enabled it to grow and maintain a clear lead ahead of other altcoins.
Bitcoin is currently the most purchased, held, and traded virtual currency in the crypto market. Bitcoin boasts the most significant market capitalization of about $1.2, an equivalent to almost half of the entire digital currencies value. Currently, top crypto exchanges, such as Bitcoin Era, report Bitcoin’s daily trading volumes exceeding $30 billion.
Unlike the other digital currencies, many investors find it much easier to buy and sell Bitcoin. Apart from investors and traders, several merchants worldwide also accept Bitcoin as a payment method. The ease of accessing Bitcoin and the statistics discussed above indicate Bitcoin’s higher liquidity than other altcoins.
Stronger Practical Uses
Developers have created several altcoins for experimentation purposes. Most of them used and still apply Bitcoin’s fundamentals to operate, making them copycats. Altcoins came into the market when most people were still unsure about the viability of decentralized currencies. That has impacted growing doubts among investors, increasingly opting for Bitcoin.
In 2009, Satoshi Nakamoto introduced Bitcoin as a decentralized digital currency, payment method, and value store. Since then, several businesses and consumers have used Bitcoin to pay for goods and services. Investors and traders use it as a store of wealth to diversify their portfolios and hedge against inflation.
Bitcoin’s uses go beyond the financial realm into several other products and services built around it. Most altcoins are projects built on Bitcoin’s open-source blockchain to provide alternative use cases to the traditional financial systems. The blockchain inspires several innovations, giving Bitcoin a more decisive competitive edge over other digital currencies.
While there is still debate about Bitcoin’s viability as an investment, there is sufficient proof that it’s suitable for future utility. Besides, it already has robust, practical use cases, increasing global acceptance as a payment method.
Unlike fiat currencies, cryptocurrencies’ value mainly depends on public perception or people’s willingness to use them to store wealth and pay for products. Bitcoin has continued to gain immense popularity because of its transparency and network security. It validates all transactions and users’ public addresses on a digital shared ledger, ensuring enhanced transparency and security.
Bitcoin allows its users more autonomy in transactions than any other virtual currency. That has made Bitcoin seem like a more credible payment method and store of wealth than other altcoins. And this drives its rapid adoption into mainstream economic sectors. People’s growing trust in Bitcoin has also boosted its demand, further increasing prices.
Overall, Bitcoin continues to face growing pressure from other altcoins. However, its first-mover advantage, higher liquidity, and more robust practical uses make it more valuable than other digital currencies.