LAUNCHED in 2009, Bitcoin started out as a fun coin that people collected for no reason. Early adopters don’t necessarily know a lot about the tech behind it. Instead, they found the idea of owning a digital currency fascinating.
Since its value blew up, many more people have become interested in Bitcoin and cryptocurrency in general.
Many other cryptocurrencies have appeared, further expanding the ecosystem that once solely belonged to Bitcoin.
Lately, crypto learning has become commonplace.
However, despite all the developments of the last decade, Bitcoin still holds the title of being the most expensive cryptocurrency.
Is the First Always the Best?
If anything, what happened with Bitcoin is rare. Many people think that getting to a novel idea first is the key to dominating the market.
But in marketing, there’s this thing called the second-mover advantage.
This talks about how a company that offers a product after the competitor has greater odds of success. Not only is the market validated already, but the second mover also learns the results the competitor generated.
The result? The latecomer produced a better (or at least more profitable) product than the original. Take the example of IBM and Apple.
Even though IBM came first in the industry, they’re not anywhere near the size of Apple today.
The same goes for MySpace and Facebook. Having online friends became popular because of MySpace. But, nowadays, they’re but a remnant of the past of social media.
So Why Is the Crypto Market Still Centred on Bitcoin?
Going against what happened to fellow first-comers such as IBM and MySpace, Bitcoin is still the best-known cryptocurrency today, though Ethereum, Tether, and many other cryptocurrencies have appeared.
Despite the shakiness in today’s market, it’s still way more popular in terms of value. Here are a few reasons this is still the case today:
It Has Transcended Hype
Even though many cryptocurrencies have some sort of backing for their blockchain, the value is still largely controlled by supply and demand. That’s why you’d see “trendy” coins with no real backing skyrocket in value, only to drop back to zero a few years later.
As for Bitcoin, we haven’t seen anything close to such a meteoric rise in its value in recent times. But it has become an authority, something accepted as completely legitimate in the crypto space.
It’s Synonymous with Cryptocurrency
Some of those who aren’t familiar with the crypto world still use the terms Bitcoin and cryptocurrency interchangeably. What does this mean?
It speaks of how valuable crypto is in everyone’s eyes. In fact, many traders still look at how Bitcoin moves to determine how other cryptos will react. But of course, this isn’t a hard and fast rule.
It’s the Most Widely Used Cryptocurrency
Even though it was launched more than a decade ago, it’s still not used in a lot of retail transactions, such as buying something at the gas station or at the grocery store. But compared to other cryptos, you’ll see Bitcoin the most.
Apart from being an alternative investment and having the highest market cap, you’ll see Bitcoin used a lot for various digital transactions.
What Does the Future Hold for Bitcoin?
Despite 2022 being a bad year for Bitcoin and cryptocurrencies in general, experts still maintain a positive outlook on the future. They believe that it will definitely reach a value of $100,000 in the future.
But still, recognize that these are all just predictions. Investing in crypto will always come with some financial risk. Therefore, think with your head first and only then follow expert advice.