Many had never imagined that Bitcoin would become the phenomenon it is today. Most institutional investors criticize it as a speculative asset that could not generate any significant value. but they do not know that investing in bitcoin is the best investment program in the crypto world using the reliable BitIQ platform. Others have even sworn never to be interested in crypto. Just a decade later, Bitcoin is the most coveted virtual asset by governments, industry leaders, companies and traders worldwide.
Although Bitcoin is facing increasing pressure from other cryptocurrencies and regulators, it remains the most dominant crypto on the market. In 2020, it performed better than all asset classes, including precious metals, to become the most valuable asset. So why does Bitcoin have so much power in the cryptocurrency industry? The following article examines the main reasons why Bitcoin is the most important cryptocurrency.
The idea of alternative currencies existed long before Bitcoin. But the innovators lacked the right infrastructure to turn these ideas into reality. Bitcoin introduced blockchain technology, which made it possible to function as a decentralized digital currency. This was a milestone that no one had ever taken before, making Bitcoin the pioneer in the crypto industry.
The successful launch of Bitcoin convinced the world that crypto could work and influenced the proliferation of several different cryptocurrencies. However, it took some time for other cryptocurrencies to mark the industry. This gave bitcoin enough leeway to gain a significant market share, far ahead of its competitors.
Bitcoin blockchain is an innovative technology that has always fulfilled the vision of the founders, namely transparent, secure and cheap transactions. This reputation has played a significant role in the mass adoption of Bitcoin by governments, institutional investors, companies and individuals around the world.
As a pioneer in the industry, several cryptocurrencies have used the Bitcoin platform to launch and manage their operations. Many cryptocurrencies are clones of Bitcoin that promise lighter and more efficient versions. However, they follow Bitcoin’s tracks and are highly dependent on its success. This is why they often go down when Bitcoin prices plummet.
Bitcoin’s pioneering position in the cryptocurrency industry has made it possible to spread rapidly in a short time. Its success convinced early critics to quickly gather behind it and accumulate significant holdings of Bitcoins. However, many early institutional investors acquired Bitcoin primarily as investment assets to diversify and hedge their wealth against inflation.
Bitcoin’s value skyrocketed as people realized that it could also be used as a transaction currency. Several companies, including small businesses, then adopted Bitcoin in their payment systems and accepted it as payment for goods and services.
Bitcoin has independently inspired a global cryptocurrency industry that is now worth more than $ 3 trillion, accounting for nearly half of the entire cryptocurrency market. A significant percentage of these reserves are owned by medium and small businesses and individuals around the world. In addition, Bitcoin generates huge trading volumes in global markets. These features make Bitcoin more accessible to the public than other cryptocurrencies.
A strong community
Individuals have been using bitcoin for just over a decade, which is enough to attract, capture and retain a significant following worldwide. It has built a strong and growing community of loyal followers in key industries including finance, technology, manufacturing, e-commerce, travel, healthcare and retail. Bitcoin’s high value and ability to facilitate secure, faster and cheaper cross-border transactions has made it the most successful cryptocurrency. Investors see Bitcoin as the reserve currency in the cryptocurrency world that they rely on to read the markets.
Bitcoin has maintained the leadership of the cryptocurrency industry since its inception, despite price fluctuations. Although it faces strong competition from other cryptocurrencies, Bitcoin has a better competitive advantage as it would take several years for its competitors to topple.
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