The introduction of Bitcoin by Satoshi Nakamoto in 2009 had a monumental impact on the financial world. By devising the first decentralized currency based upon blockchain technology, Bitcoin paved the way for many others to follow. At the time of writing, there are around 16,000 cryptocurrencies in existence and the number is rising all the time.
Despite this fierce competition, Bitcoin has remained the top dog when it comes to cryptos worldwide. So what is it about Nakamoto’s invention that continues to appeal to millions of people from around the globe? How do you explain BTC dominance in a tangible way? Here are four reasons why Bitcoin is still the best cryptocurrency – and is likely to remain so for the foreseeable future.
Recognition
By becoming the first successful cryptocurrency, Bitcoin created a first-mover advantage that it still leverages today. That’s because many people view the terms “Bitcoin” and “cryptocurrency” as almost interchangeable; even if they do grasp that the former is just one of the thousands of the latter, it will still be the first thing that springs to mind. It has become a household name. For that reason, those unfamiliar with the industry who want to invest for the first time are highly likely to enter the market by purchasing bitcoin.
Legitimacy
Bitcoin’s relative longevity has lent it a certain legitimacy since people tend to trust brands, companies, or entities who have withstood the test of time. What’s more, Bitcoin receives regular endorsements from celebrities, influencers and even, on occasion, politicians. When El Salvador decided to embrace the cryptocurrency and make it legal tender alongside the US dollar and the Salvadorian peso, it worked wonders for instilling trust in people that BTC is here to stay.
Anonymity
While many cryptocurrencies claim to be decentralized and without a figurehead, Bitcoin is the only major contender where that is 100% true. No one knows who Nakamoto is – and the individual (or individuals!) has distanced himself from Bitcoin for over ten years now. While some countries might look upon the crypto with suspicion and even ban banks or other financial institutions from handling it, they cannot prosecute anyone nor destroy it completely.
Accessibility
New cryptocurrency exchanges are springing up each day. Although accessibility is not the most significant factor in the success or failure of a cryptocurrency, you should not underestimate it. That’s especially true for new investors, who may be suspicious of the sector from the outset and baulk at the first sign of resistance or difficulty. Given that you can trade BTC on basically every crypto exchange, it has a massive advantage over those still trying to gain a foothold in the industry.
There may be many thousands of pretenders to Bitcoin’s throne, and some of them, like Bitcoin Cash, Ethereum and Binance Coin, have made reasonable attempts in recent years. However, Bitcoin is still king and looks set to remain so for many years to come.
