Why Does Everyone Like Bitcoin Over Other Cryptocurrencies?
You can use bitcoin as a store of value, which can be used to make easy domestic and multinational payments. Many investors invest money in bitcoin as a long-term store of value as an asset class like real estate. Its prices are highly liquid, and the investors predict the bitcoin prices. It is assumed that bitcoin prices will rise shortly and will also lead to a rise in value for bitcoin among investors or, we can say, a rise in the goodwill of bitcoin among investors at biticode. Bitcoin can be used as a hedge against inflation and an alternative to fiat money or precious metals like gold.
The reason behind choosing Bitcoin over any other cryptocurrency is that it was created in 2009 and was the first digital currency, or we can say the oldest digital currency that people have known over a long time. Also, the second reason was Bitcoin prices are highly volatile, and other cryptocurrency prices depend on Bitcoin prices. So as the prices fall, the prices for other currency fall and vice versa. Also, Bitcoin has a fixed supply and not more than a fixed value of bitcoin can be issued to the market for trading and investment purpose.
A limited supply
Bitcoin has a limited supply of 21 million, and not more than that can ever be created by anyone or from any source. Due to a fix, applying Bitcoin creates a high chance of price gain in future. Many other currencies are available in markets that can be used to trade but do not have a fixed application. It can be a loss for traders if the supply of other currencies (which do not have a fixed supply) increases in the market, and the price tends to fall. It can create a loss situation for traders. Yes, Bitcoin is fixed with the supply. There are a few more chances for the future growth of bitcoin. There cannot be a boom in bitcoins supply that can lead to a decrease in prices.
Hype around Bitcoin
Being the first digital currency Bitcoin gained hype. The invention of Bitcoin was a whole new introduction to digital investment as it was the first time people could learn about digital investments other than gold, real estate and stocks. However, the hype around Bitcoin was not from the start. It was created in the last few years after Bitcoin prices sky-hiked in September 2021. In the starting days of the pandemic, when there was no physical investment option left behind that investors could use for further investments, there was only a chance of leftover digital investments like gold or bitcoin.
Many traditional investors rushed towards gold investment. On the other hand, some choose Bitcoin as a digital investment for the first time and unfortunately, Bitcoin has surprised investors and given four-time returns on the investments. It is excellent in number if we compare returns on gold investments. It was why Bitcoin gained more hype and became a priority for every new and existing investor to choose Bitcoin over any other cryptocurrency.
With the support of 40 million investors, Bitcoin became the most prominent digital currency in market capitalization, whereas ethereum holds the second rank in market capitalization.
It is used by many companies and economies like Russia and El Salvador to make and receive payments for imports and exports. Russia is using Bitcoin to avoid sanctions imposed by us on trade with Russia. Russia is not fully accepting Bitcoin from all countries as Bitcoin payments are allowed only to friendly countries of Russia. El Salvador has made Bitcoin legal to make and accept payments domestically and internationally. Still, it has been made clear that it does not affect the dollar’s dominance in international markets.
It is an excellent feature that only bitcoin is accepted by economics and companies, not any other currency. So it is a kind of good news for bitcoin investors, and the chance of Bitcoin growth in future is high.
These are some of the reasons mentioned above that Bitcoin is way better than other cryptocurrencies and give a solid reason to accept Bitcoin over other currencies. Bitcoin has the potential to become an alternative to a Fiat currency and to provide intense competition to the dollar in the international market. But one thing you should clarify is that Bitcoin investments are hazardous and can become a cause for loss on your first investment. The absence of any central authority makes Bitcoin more volatile. Gaining knowledge before investing, like about Bitcoin and crypto, is necessary for new investors before investing. It can save you from losses and create new ways to make profits.