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Bitcoin has remained the most popular virtual currency for a long time. Here’s why other cryptocurrencies might never beat Bitcoin.
The world has many cryptocurrencies in circulation today. People have also used other digital currencies for different purposes over the years. However, the only virtual currencies that people talk about the most is Bitcoin. Ethereum is perhaps, the other digital currency that people discuss. Some people had even started a debate about how Ethereum would eventually overtake Bitcoin in popularity and market capitalization. However, the price of this digital currency has fallen considerably compared to Bitcoin.
Some countries have also tried to create and distribute digital currencies to their citizens. For instance, China has developed a digital currency with a government’s backing. Oil Profit is the digital form of the country’s currency. However, this currency has not beaten Bitcoin in terms of popularity and market capitalization. Here’s why other cryptocurrencies won’t dethrone Bitcoin.
Head Start
Bitcoin was the first successful digital currency. Essentially, this digital currency was the pioneer in the industry. After mining the first Bitcoin in 2009, this currency remained the only entity the world over for about two years. It’s not until 2011 that other virtual currencies appeared. By this time, thousands of people were mining Bitcoin. Although Bitcoin was worth about $13 per coin, its value increased later.
During the launch of the second crypto, people were using over 8 million bitcoins in the networks, and this digital currency market capitalization was over $100 million. Up now, no cryptocurrency has gotten close to Bitcoin. Half of all digital currencies now are bitcoins.
Mainstream Status
As the first virtual currency in the world, Bitcoin acts as the model cryptocurrency. Most people associate Bitcoin with digital money. When people hear others talk about cryptocurrencies, they think about Bitcoin. For this reason, new investors have Bitcoin in mind when they want to start trading or investing in cryptocurrencies. Despite the volatility of this electronic currency, people still want to invest in it rather than other cryptocurrencies.
Its entry into the mainstream system as a payment method has enhanced its popularity further. Today, many local and online stores accept Bitcoin. High-profile businessmen, celebrities, and techies have also spoken highly of this digital currency. And this has made it increasingly popular.
Anonymity
When using Bitcoin, you only disclose your digital wallet’s address. Nobody asks for your name or identity. That means nobody will know the person behind your digital wallet key where you store Bitcoin. And this is a top reason why most people use Bitcoin.
Bright Future
Bitcoin value has increased over the last decade, and experts suggest that this trend will continue. Although this virtual currency has experienced challenges due to price fluctuations, it has continued to gain value. Perhaps, the initial difficulties were due to limited knowledge of cryptocurrencies among users. But as people learn about Bitcoin’s potential and benefits, its price is gradually stabilizing. And with the increasing value, more people now want to invest in Bitcoin. And this enables it to remain the king in the crypto world.
Security
Bitcoin uses blockchain technology. This technology provides a public database or ledger that a person cannot hack. What’s more, the information in this ledger is impossible to change. Additionally, it’s difficult for somebody to hack a digital wallet and steal bitcoins without a user’s unique key. And this security feature prompts more people to turn to Bitcoin rather than fiat cash, especially when making online transactions.
Final Thoughts
Bitcoin presents an innovation. Being a pioneer in the crypto industry placed Bitcoin in a position that other cryptocurrencies will have a hard time changing. What’s more, its mainstream status and security features will enable Bitcoin to hold onto the top position longer.
