Want to know the top reasons for Bitcoin's influence over other cryptocurrencies? Here is a guide on the top reasons.
Bitcoin is the most popular and hottest cryptocurrency globally, and new people are joining the trading world every day. However, to start trading professionally, you should remember that it will require effort and hard work to reach your goal.
Unlike conventional currencies, this digital asset is not backed or issued by the Central Bank or any other government. This digital asset has been around for thirteen years, facing many challenges, including bans in some countries and crashes. However, this digital asset has stood the test of time and has proven reliable cryptocurrency. As a result, many people are even opting to purchase this electronic asset so they cannot be left behind from benefiting from this digital currency. Bitcoin has made many people millionaires, while at the same time, there are people who have lost a lot of funds trading and investing In this digital asset.
Investors might look up other upcoming cryptocurrencies to buy. However, these altcoins will even disappear due to a lack of buyers. Therefore, this virtual asset is the most dependable cryptocurrency globally. Here are the top reasons for Bitcoin's influence over other cryptocurrencies.
Bitcoin Was the First Cryptocurrency
The earliest and oldest cryptocurrency to be created was this digital asset created in 2009 by Satoshi Nakamoto as a response to the 2008-2009 financial crisis. Since then, thousands of cryptocurrencies have emerged, collectively called altcoins. In addition, when this electronic asset's price drops, other cryptocurrencies' value drops, while the opposite is equally valid. Therefore, this virtual asset is the oldest and earliest cryptocurrency, and it sets the trend on how the prices of other altcoins will follow. Also, Bitcoin has led to the creation of crypto exchanges such as BITCOIN-LOOPHOLE.LIVE that helps people to purchase and trade Bitcoin and other cryptocurrencies.
People say many things about this digital asset. However, it remains the cryptocurrency that paved the way for other cryptocurrencies. Ethereum, the second largest cryptocurrency by market capitalization, is also a popular cryptocurrency. This virtual asset paved the way for an entire industry, and today, everyone that owns cryptocurrency also owns this digital asset. Through this digital money, a lot of people have become millionaires.
Bitcoins Network is The Most Secure
Bitcoin has a well-established infrastructure known as the blockchain technology that helps verify and record transactions. Blockchain technology creates a public distributed ledger that records every transaction people carry out in the Bitcoin network. Moreover, blockchain can be viewed by everyone hence why Bitcoin transactions are more transparent.
Other than transparency, blockchain ensures that its users remain anonymous. Hence, tracking a transaction to its sender or recipient is hard. Numerical values represent these digital asset users. Therefore, it does not disclose users' addresses.
Bitcoin is a Store of Value
Unlike traditional currencies, this digital asset does not suffer from inflation but is a perfect hedge against inflation. Fiat money suffers from inflation since the government can print a lot of currencies and release them to the public hence losing its value.
On the other hand, this virtual asset has a limited supply, which in turn increases its demand, leading to an increase in the value of this digital asset. Eventually, many investors opt for this electronic asset since it does not suffer from inflation. Also, Bitcoin is a good store of value compared to other cryptocurrencies that have not hit the mainstream market.
Bitcoin is undoubtedly the most promising and profitable cryptocurrency when compared to the rest. Bitcoin is also the pioneer of the cryptocurrency industry hence why it has the final word regarding market sentiments.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.