Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $2,120 trillion. Bitcoin is up by nearly 4% in comparison with last Sunday. Ethereum lost 2% in value over the week. XRP is down by roughly 4% after a troublesome week. Most altcoins, except Avalanche, have traded in the red for most of the week. The DeFi sector gained almost $1.4 billion from the…
Since its launch in 2009 by the pseudonymous developer Satoshi Nakamoto, Bitcoin has always stayed ahead of its competition. Cementing this fact is the worth of the coin is about 64.2% of the total cryptocurrency Market Cap as of the 8th of November 2020. As the pioneer cryptocurrency, it entered a new front whose problems were only starting to be understood. Many different altcoins have since made their debuts, each solving the predecessors’ challenges, and with aspirations to unseat Bitcoin, but to no avail. Bitcoin also enjoys advantages that make it special in stock investments.
Reasons why Bitcoin still Towers
New altcoins have been launched to solve problems specifically faced by Bitcoin and other coins already in the market. As a consequence, Bitcoin may, in theory, be the coin facing the most operational challenges. Even then, it’s still the preferred crypto for many. The several reasons that underpin its preference are as follows;
Simply put, cryptocurrencies can not come in a more original form than Bitcoin. It was the first cryptocurrency to be released. Since its launch in 2009, Bitcoin has worked as a store of value without fail to date.
Its blockchain technology has rendered it virtually unhackable. Being the crypto with the most hardware, hacking is even more unlikely, thanks to the 51% attack rule.
With such a great reputation, Bitcoin values have continued to soar over the past few years, something that the other cryptocurrencies lack in equal measure.
As stated earlier, every altcoin does come with an added feature to solve a perceived issue with its predecessor. As a result, their protocols have different features, as an upgrade to Bitcoin. That, however, doesn’t imply Bitcoin is redundant in features. Possessing the largest software team, Bitcoin can add an altcoin’s features directly should it prove its usefulness.
However, some features tend to conflict with Bitcoin’s use-case. As such, the consensus to add such features is likely improbable, providing for the second form of incorporating new features. Entrepreneurs arise, as a result, adding these functionalities at a profit.
Both types of upgrades are termed as forks. They ensure the coin’s continued relevance and thus value.
A good reason why Bitcoin is very popular is its fixed number of coins to be mined. The mining difficulty also increases after every 2016 blocks, or roughly after two weeks. Currently, it stands at 17.35 trillion. This calls for more input needed to mine a bitcoin as time goes by. Furthermore, the reward for mining is halved after 210,000 blocks, creating a position where more input is guaranteed to be spent for a lower coin count yield.
Faced with such a conundrum, the mined coins’ value is almost guaranteed to go higher as time goes by. It currently stands at $15,230 as of 8th November 2020, up from just $0.003 in March 2010. The current figures don’t even come close to scratching its potential. Some predictions put it at about $288,000 by 2024!.
The potentially handsome return to coins held today drives its stock trade preference.
Compared with the other altcoins, Bitcoin is placed in a very favorable position in terms of accessibility. The coin is the most accessible in the market due to a host of various features.
Bitcoin has far more exchanges than other altcoins. Because of this, the coin boasts more merchants trading in it globally. This means that more businesses and entrepreneurs are creating and modeling their operations around Bitcoin than with any other competing cryptocurrencies.
Therefore, traders prefer transactions in Bitcoins over other cryptos, with stockbrokers preferring to hold it, thanks to all these features.
More Assets and Support
Its comparatively larger size and systems heavily influence Bitcoin’s favorable position.
To begin with, it has by far the largest market cap and, as a result, has the highest liquidity of all cryptocurrencies. This relative position is expected to be as-is for the foreseeable future.
The coin is backed by the largest development ecosystem, containing the most supporting software. The blockchain also has the largest hardware system in the form of millions of P2P network nodes. All these scaled-up features increase Bitcoin’s reliability compared to other altcoins, placing it as the preferred tradeable crypto.
Since its launch, Bitcoin has rapidly appreciated, enjoying a gold-like store of value nature. Thanks to it being the very first cryptocurrency, it leverages its first-mover advantage to the same effect. As a result, Bitcoin’s popularity is comparable to other first movers in other sectors, such as Coca-Cola in the beverage industry.
The Covid 19 pandemic that instigated a global economic downturn in 2020 has made asset holders appreciate Bitcoin as a match, if not a potentially better alternative to Gold as a safe bet. The BTC prices being at $15,230 are up 25% this year, compared to gold, which is up 12%, making Bitcoin the better performing asset and a credible store of value. This fact serves to cement its position in stock investment as well as the foremost cryptocurrency.
Other altcoins are, in their own right, excellent investments. They largely come with added features in their protocols to make the trading of cryptocurrencies easier. As the cryptocurrency industry is quite young, there is still room in the future for the growth of these altcoins, making them a credible investment.
Bitcoin, on the other hand, is not only a proven asset used to store value, but it also boasts several key edges over its rivals. Its adaptability, as well as a comparably larger market cap, is what is making the coin stand out as the foremost cryptocurrency in investors’ minds.