My appetite for investing in cryptocurrencies increased when I stepped into the crypto world. A few days ago, the crypto market gained 20 billion USD in 30 minutes, and that is the reason why prices have surged considerably as compared to the prices in April and June.
However, people who are new to the crypto-niche and want to invest in a significant cryptocurrency are scattered as there are so many cryptocurrencies operating nowadays.
In this article we will be explaining more about Bitcoin and why it is so significant in comparison to other cryptocurrencies.
John McAfee is claiming that blockchain technology is here to stay for a long term. In fact, the most conservative experts have accepted that blockchain technology will be permanent as the crypto world is proliferating.
The appropriate solution is to start with the most valuable cryptocurrencies, in this case Bitcoin. Consequently, it would be useful to examine the cryptocurrencies individually in order to know more about blockchain technology.
The total number of Bitcoin, which has a 10-year history, is restricted to 21 million. There are 17.08 million Bitcoins in circulation. As time goes on, it gets harder to mine Bitcoin. It is estimated that the last Bitcoin will be released in 2136. These factors lead to demand, having an upward impact on the price.
According to Metcalfe’s law, the value of a network increases in proportion to the square of the number of people using it. Without any wonder, Bitcoin is the most popular crypto that has gained so much value with the advantage of being the first. As a crypto enthusiast, I believe that crypto prices will continue to increase in accordance with the Metcalfe law.
There is enormous liquidity arising from the prevalence of Bitcoin. It is easier for big investors to invest in Bitcoin because it has a broader market as compared to other cryptocurrencies. Bitcoin is also widely used as a payment tool and it is less volatile as compared to others.
One of the most critical weaknesses of Bitcoin is electricity consumption. According to the Proof of Work principle, the approval of operations in Bitcoin takes longer than later cryptos and activities consume higher processor power. Another weakness of Bitcoin is that the trading fees are high compared to crypto coins such as Bitcoin cash and Litecoin.
The functions, such as the distributed application development and smart contracts, which are valid for subsequently produced cryptocurrencies such as Ethereum and Neo, are not in question for Bitcoin.
In addition to the advantages of being the first, there are disadvantages. Cryptocurrencies emerged after Bitcoin was founded, on more advanced infrastructure by taking lessons from Bitcoin. Of course, improvements are made on Bitcoin, but these improvements have not yet achieved the desired improvements of processing time and transaction costs.
Furthermore, Bitcoin is ranked in the first position with the market capitalization of 140,643,370,205 USD. Many crypto enthusiasts are nowadays claiming that Bitcoin is the future. As the market stands right now, it seems that bitcoin’s prices will be shooting to the moon.