Why Bitcoin is the Top-Performing Cryptocurrency
There’s no doubt that Bitcoin is the top-performing cryptocurrency. Its value has increased dramatically over the recent years. Many internet enthusiasts already know about this virtual currency, with some people investing significant amounts of fiat money in it. More prominent companies are capitalizing on the potential of this cryptocurrency’s connected digital network.
Today, Bitcoin is the most widely used and preferred cryptocurrency globally. Its value has increased significantly as more investors purchase and store this digital gold. Bitcoin has the most significant market valuation, volume, and price compared to other cryptocurrencies.
While the market has thousands of digital currencies, Bitcoin accounts for over 40% of its capitalization. And this virtual currency dominates the market, whether its price falls or rises. Traders gain from the strong Bitcoin’s liquidity regardless of its market’s volatility. Here’s why Bitcoin is the top-performing cryptocurrency.
Easy Accessibility
Bitcoin performs better than the other virtual currencies because it pioneered in the cryptocurrency market. While the world had other products based on the same concept, Bitcoin was the first successful digital currency. Consequently, this virtual currency took a leading position that other digital currencies are yet to reach.
What’s more, people can easily access this virtual currency on Trading Robot. Also known as crypto exchanges, such platforms allow people and organizations to register, fund their accounts, and buy and sell Bitcoin.
The number of users increases every day as more people start purchasing and selling Bitcoins. Others opt to invest in this virtual currency through crypto exchanges. Investing in Bitcoin entails buying and keeping the tokens for an extended period waiting for their price to increase. On the other hand, Bitcoin trading involves purchasing Bitcoins at a low price and selling once the value increases.
Bitcoin Scarcity
Most crypto enthusiasts know that Bitcoin is a scarce digital asset. Its network protocol limits the number of tokens that the world can ever have. Ideally, Bitcoin miners can only produce 21 million coins. Miners introduce new coins to the market via the mining process. In return, the Bitcoin network rewards them with new Bitcoins. What’s more, the Bitcoin network halves the number of tokens the miners receive every four years. Thus, the Bitcoin block reward phenomenon reduces by 50% every four years.
Bitcoin halving is a crucial factor contributing to its price. Since the world can only have 21 million Bitcoins, the market currency has less circulation with the decreasing reward. As more people learn about this asset’s scarcity, its demand will increase, leading to a higher price. Currently, Bitcoin constitutes over half of market capitalization. And its price variation affects other digital currencies.
Increasing Adoption
Being the pioneer currency makes Bitcoin a popular digital currency. Today, more individuals and institutions invest in Bitcoin after realizing its potential. Some entities see Bitcoin as a haven that can protect against conventional currency inflation. Also, the current economic and social climate makes people and institutions want to hold less cash. Instead, they need assets that enable them to hedge against market fluctuations.
Several companies have converted cash treasuries into Bitcoin. Microstrategy and Square are among the companies that have changed their cash reserves into this virtual currency. Ideally, many companies and individuals consider Bitcoin good value storage. Consequently, Bitcoin has continued to perform better than other digital currencies.
Final Thoughts
Many traders and investors consider Bitcoin a valuable asset for short-term and long-term earnings. By pioneering in the crypto industry, Bitcoin took a position that takes other cryptocurrencies time to reach. What’s more, many investors, traders, and organizations see Bitcoin as good value storage and a hedge against inflation. All these factors enable Bitcoin to continue dominating the crypto market.
This article has been published in accordance with Socialnomics’ disclosure policy.
