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What Makes Bitcoin the Best Cryptocurrency?

by Nemo

Cryptocurrency has fundamentally altered how we view the banking sector In the last ten years. As more and more individuals show interest in the internet phenomenon, Bitcoin and other cryptocurrencies have grabbed the globe by storm.

According to surveys, 17% of American adults have made an investment in a cryptocurrency, and this percentage is predicted to climb in the near future. Furthermore, compared to other investment options, those from younger generations, such as Gen Z or those of the millennial age, are far more inclined to invest in cryptocurrencies.

Due to this, many individuals who are interested in learning more about cryptocurrencies are still unaware of the best of the best. According to estimates, there are currently hundreds of distinct cryptocurrencies available on the market; some sources put the number as high as 10,000.

But even though there are several cryptocurrencies on the market, Bitcoin, the original cryptocurrency, has surged and remained at its peak. So, let’s look at what sets Bitcoin apart from its competitors and makes sure it stays on top of the pyramid.

What is Bitcoin?

The most well-known and trendiest cryptocurrency today is Bitcoin. Bitcoin was created by an unidentified programmer and self-described libertarian, Satoshi Nakamoto, and it was formally launched in 2009. Mr. Nakamoto was heavily influenced by libertarian economists such as Friedrich Hayek, who advocated for decentralised currency.


In Satoshi Nakamoto’s article “Bitcoin: A Peer-to-Peer Electronic Cash System,” which was published in 2008, Bitcoin was first presented to the public as a hypothesis. In the paper, Nakamoto discusses blockchains, decentralised currencies, and encryption.

After the article was released in 2008, Bitcoin transitioned from theory to reality. More than 10 years later, the cryptocurrency bubble has elevated Bitcoin to the ranks of the world’s most lucrative investment options. With many predicting that it would surpass $30.000 by the end of the year, the value of one Bitcoin token is currently close to $30,000.

Why is Bitcoin considered the best cryptocurrency?

1. Status

Since Bitcoin was the first crypto currency, it makes sense that it is also the most regarded and trustworthy. Over the years, a number of singers, artists, and other celebrities have begun accepting bitcoin payments, and many of them have made a tonne of money. Not only have public figures begun to accept bitcoin payments, but even businesses, including Starbucks, Home Depot, Whole Foods, PayPal, and Xbox, have either begun to accept bitcoin payments or are contemplating doing so.

Profits have increased for those who have already begun using Bitcoin. In addition to all of this, Bitcoin is the most widely used cryptocurrency on online marketplaces. The majority of online trading platforms, like those featured on this UK-based Bitcoin trading platform, allow a variety of cryptocurrencies, but Bitcoin continues to be the most well-known and regarded. Most people who want to start investing do so on trading websites, which are easy to use for beginners and also teach new customers how to invest.

2. Profitability

The oldest cryptocurrency still in use today is bitcoin. Bitcoin was created in 2009, making it twelve years old. In those twelve years, the value of Bitcoin has dramatically increased. Bitcoin’s first market price was $0.0008, and it increased to $0.08 the next year before hitting one dollar in 2011. In the years to follow, the price of Bitcoin would rise to previously unheard-of heights, reaching $32 in mid-2011, $220 in 2013, and eventually crossing $300 in 2015. Bitcoin’s price rose to a record-breaking $40,000 in 2020; no other cryptocurrency has ever reached this level. Bitcoin is now the most valuable crypto currency on the market, valued at close to $35,000, significantly above the value of other prominent cryptocurrencies like Ethereum.

3. Bitcoin’s Bright Future

Let’s examine Bitcoin’s possibilities for the future now that we’ve looked at its pricing history. By year’s end and beyond, many analysts and experts predict that the price of Bitcoin will increase rapidly. Although Bitcoin presently costs $29.872, many people predict that in the coming years its value will reach a record-breaking high of $100,000. In addition, many experts believe that by the end of the 2020s, 99.9% of all Bitcoins will have been mined.

This will probably cause the price of a single Bitcoin unit to increase to an astounding, unheard-of $50,000. Given these facts and society’s growing receptivity to the phenomenon, Bitcoin’s future as a cryptocurrency appears to be quite promising. It is thus no surprise that Bitcoin is still the most well-known crypto currency as of this writing.

4. Utility and enabling technologies

According to Dr. Tomic, utility is a major factor in determining the value of cryptos. The value of cryptocurrency increases as more establishments start to accept it as payment. Additionally, this implies that users of crypto currency may participate in this process. Blockchain, the fundamental technology that underlies most cryptocurrencies, has enormous potential. According to Pierce, a blockchain is only a database. “There are many things you can do with a database.” Pierce lists a number of ways it could be used in the real world, such as making a new asset class, a modern version of old asset classes like gold, a new utility, and even new tools to make the stock market work better.

The important traits of a currency

What, therefore, must happen for cryptocurrency to cross that threshold and become as widely accepted as conventional forms of payment? Many times, economists categorise the many qualities that a currency should have in order to be helpful. This indicates that the currency is generally accepted. Currently, a few retailers may take bitcoin or other cryptocurrencies as payment, although this number is still rather small.

Which cryptocurrency will have the infrastructure needed to be used as a currency?

Dr. Tomic queries, pointing out that at the moment, Bitcoin seems to be in the lead. The capacity of money to be divided into smaller pieces is another important feature. Both crypto currency and fiat money may be divided, but cryptocurrencies are frequently more so. Bitcoin, for instance, allows for division to eight decimal places.

  • Durability: Money must be reusable in order to be useful in the future. Perishable goods have been used historically, but they are not accepted as forms of payment because of this.
  • Fungibility: When two objects have a generally recognised value and may be swapped without the value of either item decreasing, the term “fungibility” is used. You may simply trade one quarter for another, unless you have a rare coin. Diamonds, on the other hand, aren’t fungible and wouldn’t make good money units since, among other things, size and clarity determine their value. The majority of the time, both cash and cryptocurrencies are interchangeable.
  • Limited supply: Money must be in a limited quantity in order to be able to be used as payment for other products or services. The supply of several cryptocurrencies is constrained.

Money loses a lot of its usefulness if you can’t carry it with you when you need to. Physical money is conveniently portable, and this is now even more true with debit cards. Crypto wallets, which enable you to store and transfer cryptocurrencies, can be used to carry cryptocurrency together with investment or brokerage apps.

Instantaneous crypto transfers are possible, according to Pierce. Last but not least, a currency’s value should remain constant or rise over time. If not, currencies would always need to have their available commodities and services revalued. Currently, cryptocurrency isn’t very stable; the value of a single cryptocurrency coin might vary daily or even hourly.

According to Dr. Tomic, understanding the true usefulness of cryptography “is entirely predicated on its acceptance.” For crypto currency to function as money, “enough individuals have to agree to accept payments in crypto.” The infrastructure will be largely responsible for that acceptance.

Crypto vs Stocks

Because they resemble one another so much on the surface, stocks and cryptocurrencies might “feel” comparable. Both are illiquid assets that might readily be included in an investment portfolio and have the potential to passively increase in value over time. But despite appearances, they are not comparable.

“Stocks are equity assets that reflect ownership in a firm. The value of each share is based on how well the company does, how the market sees it, supply and demand, and equity assets like stocks.Depending on how well a firm is performing, some will also pay dividends to shareholders.

Although the value of a company’s shares doesn’t increase indefinitely, this hasn’t been the case for the stock market as a whole. This is due to the fact that companies constantly innovate or adapt to satisfy market demands. On the other hand, the cryptocurrency market tries to be as important as the US dollar, the Euro, or the Swiss Franc.

The question “will you be able to really conduct your transactions in crypto?” will reveal the genuine worth of crypto currency. “Doctor Tomic” The market has shown interest in these digital currencies while the “war” is still in progress, which has increased demand despite the restricted supply and raised the value of each digital asset. Think about the differences between the two vehicles before deciding where to put your money.

Should you make a cryptocurrency investment?

Due to the low price correlations that cryptocurrencies like Bitcoin have traditionally had with the American stock market, owning some can help you diversify your portfolio. It definitely makes sense for you to directly purchase some cryptocurrencies as part of a diversified portfolio if you think that cryptocurrency use will grow more and more common over time.

Be careful to have an investment thesis outlining why each cryptocurrency you buy will endure the test of time. If you do enough research and learn as much as you can about how to invest in cryptocurrencies, you should be able to handle the risk as part of your overall portfolio.

You might think about alternative strategies to perhaps profit from the increase of cryptocurrencies if purchasing crypto seems too risky. You may invest in a cryptocurrency exchange like CME Group (NASDAQ:CME), which enables trading in crypto currency futures, or you can purchase the shares of businesses like Coinbase, Block, and PayPal. Despite the possibility of profit, investments in these businesses may not have the same upside potential as direct crypto investments.

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