Bitcoin has experienced a 12-year cycle of innovation, wherein each year introduced new capabilities that have kept Bitcoin at the forefront of crypto. A website likeImmediate Edge-Handels-APP is a wholly automated cryptocurrency trading platform offering the best features like liquidity, trading tools, and customer support. Bitcoin has introduced many groundbreaking innovations in security and functionality, and it’s become the industry standard because of its ability to evolve with little risk of fragmentation.
Bitcoin’s longevity gives it the power to innovate for financial transactions over almost any currency in history, with total market dominance at 54% share of cryptocurrency market capitalization. Bitcoin also has a comprehensive and robust community to back up its innovations. This community is mainly governed by self-regulation, an essential element of maintaining decentralization – the notion that no one entity can control Bitcoin.
The math and science behind creating a new cryptocurrency are complex. Still, Bitcoin has done an outstanding job in making this process simple and accessible for anyone with a computer, internet connection, or smartphone. Bitcoin’s secure and scalable blockchain protocol was the first and helped open up the crypto space’s innovation.
In doing so, Bitcoin has become the standard for digital payment networks across many industries, and it’s so widely used that there are now billions of dollars worth of economic activity built on top of its protocol daily. The first use case for Bitcoin was for digital cash, but over time it evolved into a much larger platform with a wide range of use cases beyond simply payments. Let’s explore why bitcoin is still on top of cryptocurrency.
Reasons why bitcoin is still on the top of the cryptocurrency space:
- Bitcoin has an early mover advantage:
Bitcoin’s first-mover advantage is the primary reason it’s so far ahead in the market. Of course, it could be because the project was based on blockchain technology. But others say its superior growth can be attributed to education, innovation, and overall marketing strategy.
- Bitcoin has a strong community involvement:
Bitcoin’s core community team has been quite active over the last year with their efforts to improve their product, leading to faster confirmations, lower fees, increased scalability, and a more reliable network.
- Bitcoin has a highly malleable protocol:
Because this blockchain platform is open source, it allows anyone to build upon it with their innovations and improvements. In addition, it has led to a tremendous amount of third-party software being developed to support the platform, making it even more valuable as a currency and protocol.
- Bitcoin has always been at the forefront:
Bitcoin launched in 2009, which was ahead of many competitors. The fact that people first introduced the concept before Ethereum or Litecoin means that Bitcoin is the only cryptocurrency with experience operating a decentralized cryptocurrency networked over blockchain technology, without which it wouldn’t have become what it is today.
- Bitcoin has mass adoption:
One of the key reasons why Bitcoin’s value is high is because it has reached mass adoption. It means it has high liquidity, and many people use, trade, mine, and store the currency. Due to its overall influence on the price in terms of trading volume, Bitcoin remains ruling the crypto space with a 54% share of the market capitalization.
- Bitcoin has the potential to scale:
A key reason why banks are investing in blockchain technology is that they believe that it can lower costs and make transactions much faster. Since its protocol runs on blockchain technology, Bitcoin can scale up to a more significant number of transactions every second, which makes it more cost-effective for banks and businesses. On the other hand, many don’t see Ethereum as more valuable than Bitcoin because it has yet to carry out a hard fork, so it has no track record of conducting one successfully.
- Bitcoin is an appealing investment asset:
Bitcoin’s market cap is over $400 billion, which makes it one of the most valuable cryptocurrencies in the world. Moreover, its price has remained generally stable for the last year, making it highly regarded as a payment network and an investment asset.
Bitcoin’s transaction speed is also breakneck, which makes it an ideal payment network in many industries and applications. From remittances to eCommerce, Bitcoin has advantages as a payment network over the national currency. Also, there are many people in countries where their native currencies are not reliable; they turn to bitcoin because this cryptocurrency is backed by gold and can be converted into national currencies when needed.
- Altcoins are based upon the concept of bitcoin:
The altcoins are derived from bitcoin, so the fundamental difference is that these networks run different protocols, and their benefits and advantages also differ. However, Bitcoin is valued at billions of dollars because it has a substantial first-mover advantage. It has all the advantages of being the first cryptocurrency created and being the largest by market capitalization.
Bitcoin was created to be a currency, but it has become incredibly versatile. It can be used by people in many industries like remittances and eCommerce, payments and cross-border transfers, healthcare, and banking services.