Why do Cryptocurrency Investors Still View Bitcoin as the Godfather of Digital Assets?
Cryptocurrency has become VERY popular, and as a result, it’s introduced a new problem in the world – cyber theft. The first pre-introduced cryptocurrency, Bitcoin, has remained popular because there’s more risk with investing in other cryptocurrencies.
As time goes by, blockchain technology is gradually taking over industries because it tracks everything on the network and stores this information on the blockchain itself.
There are a few reasons why investors who are already invested in other digital assets might still view Bitcoin as the godfather of digital assets:
The Popularity Has Helped Give It The Status Of A Somewhat Exclusive Digital Asset
Blockchain and FIAT are disrupting the financial sector, with finance being one of the last industries not touched by the internet. Bitcoin has shown us that distributed networks can empower firms economically even more. Furthermore, it’s shown us the extent to which decentralization is necessary for proper efficiency in financial management.
This digital asset has seen a tremendous increase in popularity that has helped it gain the status of a somewhat exclusive digital asset. The use of transaction fees, or the amount of money charged by the network for handling processing transactions, has also reached significant highs in this time period.
Bitcoin is a digital asset that straddles several bylines like currency, reserve asset, equity, or speculative bubble. However, it has distinguished itself from most assets in one unique feature: scarcity because only a finite number of Bitcoin will ever be issued.
Many people are not aware of how to use Bitcoin and are questioning what it is. It is similar to cash because once you spend your bitcoins, they go away forever, but it doesn’t have any physical form like cash, so you can’t touch it or hold onto it as traditional currency. The best way to describe Bitcoin is something like gold because its value is only determined by what people think it is.
Bitcoin Is Traded On More Exchanges Than Most Other Cryptocurrencies
Investors are still clinging to the belief that Bitcoin will remain the King of digital assets regarding the number of exchanges.
Bitcoin still finds itself listed on most exchanges, which is much greater than any other digital asset today. If investors start believing in an altcoin more, like Ethereum, for example, Bitcoin will be the one suffering from a reduction in demand and liquidity.
Does this mean that Bitcoin’s days are numbered? Not at all – despite recent setbacks, this digital asset remains steady and has never been worth less than it is today.
Over and above that, it is not surprising for cryptocurrency experts to note the symbolic 10,000 percent growth rate, which Bitcoin had over three years.
In this race, many individuals are ready to do anything to become a fortunate person one day; crypto enthusiasts would like to know if there is anything with Bitcoin that they should consider.
Individuals who see it as the Godfather of cryptocurrencies will be happy because they trade it on more investment exchanges (MCAP).
This phenomenon has brought together the sympathy of investors who esteemed Bitcoin. This can be partly due to MCAP ensuring that Bitcoin remains an attractive stock compared to other cryptocurrencies and digital assets available on the market.
In Many Ways, BTC Leads The Way For A Cryptocurrency Market
Bitcoin (BTC) is the original cryptocurrency, and it still leads the way in many ways. It was the first to achieve a market capitalization of over $10 billion and was accepted by significant merchants. BTC also has the most extensive user base and the most active development community.
Many altcoins (alternative cryptocurrencies) are forks of Bitcoin, meaning they are derived from the code of Bitcoin. This means that they inherit many of Bitcoin’s features and benefits. For example, Bitcoin Cash (BCH) is a fork of Bitcoin that increased the block size limit to 8MB. This allows more transactions to be processed, but Bitcoin remains the original.
Bitcoin’s Market Cap
Bitcoin has now reached the highest market cap that it has ever seen in its whole existence. This is a sign from investors that they believe Bitcoin is a digital gold asset worth investing in and an indicator of the growing demand for cryptocurrencies.
The architecture of Bitcoin technology is what makes this currency such an attractive investment right now. With its blockchain technology, it’s less volatile than some other currencies and has the potential to grow exponentially over time. AI trading software like Bitcoin Evolution is increasingly being used for trading Bitcoin on exchanges, which further helps stabilize the crypto-currency and make it more attractive to investors.
Although some other cryptocurrencies share similar properties, Bitcoin’s market cap makes it the most prominent cryptocurrency globally.
Bitcoin is a digital currency designed to be decentralized and not an asset of any country or central bank. It uses cryptography to control coins’ creation and regulate the transfer of funds.
The cryptocurrency design features include finite supply, highly secure transactions, and anonymity (among others).
This has led bitcoin to become popular with people who don’t have access to banking services as well as people who have been ostracised from society.
Cryptocurrencies also provide a way for anybody with enough computer power to mine coins at home.
Summing it up!
Cryptocurrency investors view Bitcoin as the godfather of digital assets because it was the first to hit the market and is the most well-known. It has been around for several years and has a large following. Other digital assets have been created since Bitcoin, but they have not been able to dethrone Bitcoin as the number one digital asset.