Bitcoin is the first cryptocurrency ever created, meaning it has the first-mover advantage over the other altcoins developed after it. Bitcoin appeared for the first time back in 2009, and still, up to this moment, it has maintained its position as the largest cryptocurrency by market cap. So, is it because this particular cryptocurrency was first developed the reason that Bitcoin continues to hold its position as the crypto king? Bitcoin has become so popular that it is highly accessible worldwide. For example, you can buy Bitcoin with debit card, making investing in cryptocurrencies a very easy process for anyone to consider. In this article, we will explore why Bitcoin continues to dominate the market, so keep reading to find out more.
What Exactly is Bitcoin?
Bitcoin is the first cryptocurrency ever developed that has forever changed things in the financial sector, as it was created in response to the global financial crisis. So, the creator of BTC, Satoshi Nakamoto, wanted to offer an alternative to fiat money and help individuals protect their finances in a better way. BTC was designed as an electronic and decentralized peer-to-peer cash system. In this way, people finally had a decentralized option to use when making payments or transacting. And because BTC is the pioneer in the crypto space, Bitcoin also has the first mover advantage.
Bitcoin was first traded for a physical product in 2010 when the crypto king was exchanged for a pizza. This has made crypto fans celebrate Bitcoin Pizza Day annually, highlighting the rise of Bitcoin and its humbling beginnings when BTC didn’t value more than a pizza. But since then, Bitcoin has gone through several ups and downs and met challenges, which seemed to stop it from a bigger evolution. Still, Bitcoin rose every time, cementing its position even more as the crypto king who dominated all the other altcoins.
Bitcoin Still has Sovereignty
All the other altcoins were created to solve the shortcomings of the crypto pioneer, and even though they brought many innovations, they still didn’t manage to dethrone Bitcoin. Moreover, the majority of people associate Bitcoin with crypto at large. So, Bitcoin can also be seen as the face of the industry, which forever transformed both the financial and crypto landscape. If the price of Bitcoin increases, this can also occur with the other altcoins.
Bitcoin has the Core Advantages of a Cryptocurrency
In theory, cryptocurrencies are decentralized assets that no one has sovereignty over, like a government or other central authority. However, over time, some cryptocurrencies developed didn’t focus that much on this characteristic, which differs from Bitcoin, a truly decentralized cryptocurrency. An unknown individual or group of people under the pseudonym of Satoshi Nakamoto created Bitcoin. Because of its anonymity, Bitcoin is a decentralized blockchain and cryptocurrency.
However, because Bitcoin was the first cryptocurrency created, the platform needed to overcome some challenges to remain relevant and keep up with all the other altcoins’ innovations. Bitcoin took the necessary steps to improve what it was offering to its community, such as the Taproot upgrade and the Lightning Network, which were considered to enhance Bitcoin’s privacy and scalability.
Bitcoin has Become a Legal Tender
Another discrepancy between Bitcoin and the other altcoins is that it has become a legal tender, increasing its popularity even more. El Salvador made Bitcoin a legal tender in September 2021, marking a tremendous moment in the evolution of Bitcoin. This adoption could also inspire other countries to do the same, which could catapult Bitcoin into mainstream adoption. Merchants must accept transactions with legal tenders, which can make Bitcoin more utilized as a payment method.
So far, Bitcoin is the only cryptocurrency that has become legal tender, which makes it stand out from the other altcoins. Bitcoin brings many advantages to the world, as it is decentralized, reducing intermediaries from the equation. Additionally, making payments with Bitcoin also reduces fees, which is essential, especially when making cross-border transactions.
Why do People Continue to Invest in Bitcoin?
Bitcoin still represents the number one option people consider when they want to take the first steps into the crypto space. This occurs for many reasons. For example, Bitcoin is a very accessible digital coin that can be accessed only with an Internet connection. This means that Bitcoin can be purchased even from remote areas and instantly receive the BTC you want.
This occurs because Bitcoin also introduces instant transactions, which differ from bank transfers, where individuals might need to wait longer to receive money or process payments. Bitcoin has a block time of approximately 10 minutes, much faster than making payments with bank transfers, which can take days to complete.
Besides this, Bitcoin can also be a good store of value, as it can appreciate over time, which has also occurred in the past. Fiat money doesn’t have the same advantages as weak stores of value because inflation can hugely influence prices. However, Bitcoin can act as a hedge against inflation. More than this, Bitcoin is a scarce asset with a limited supply of 21 million tokens. This scarcity can increase Bitcoin’s appeal even more and make it stand out from all the other cryptocurrencies.
Conclusion
Bitcoin is the first cryptocurrency ever created, meaning it will always have the first-mover advantage. Bitcoin is also the largest cryptocurrency by market cap, and this will probably continue to be the case in the future as well, as it persists to focus more on innovation to stay a viable answer.