Bitcoin is well-known as the first and most valuable cryptocurrency. It was first introduced in January 2009 by Satoshi Nakamoto as a way of sending and receiving money without the need for a central authority.
After its introduction, it soon became apparent that Bitcoin (BTC) had shortcomings that could be fixed by introducing newer and better altcoins. However, bitcoin remains the critical driver of crypto prices, leading to questions of why and whether bitcoin is still the best cryptocurrency.
Historical Perspective on Bitcoin
Cryptocurrency existed in theory for over 40 years before it became a reality in 2009 through Bitcoin creation. Since its creation in 2009, when it sold for less than a dollar, bitcoin has increased significantly in value and price.
Around the end of 2017, Bitcoin gained a lot of attention when its price skyrocketed to around $20,000; interestingly, a sudden rise in investors, even those who had no idea of Bitcoin, mortgaged their houses to buy Bitcoin.
In the past few years, Bitcoin has witnessed many wild swings. It hit $69,000 in November 2021 and dipped to $16,000 12 months later, increasing to a new ATH of $73,750 this March.
Bitcoin continues to gather interest from the next generation of investors and remains the number one cryptocurrency by market capitalization on their preferred crypto trading platform. For context, bitcoin currently hovers around $65,000, with the next best, Ethereum, pushing the $3,150 mark.
Evolving Cryptocurrency Market
Since Bitcoin was created in 2009, the cryptocurrency world has seen a remarkable transformation. What started as a mere decentralized digital currency has become the home to many innovative projects and alternative cryptocurrencies, often called Altcoins.
As Bitcoin’s popularity increased, entrepreneurs and developers began to explore new ideas in the Blockchain space. This led to the beginning of Altcoins, each with its use cases, unique features, and visions for the future.
Altcoins introduced innovations such as smart contracts, privacy enhancements, and scalability solutions, expanding the potential applications of blockchain technology. Altcoins have also played a big part in the expansion of the cryptocurrency world.
We are witnessing the development of new technologies and ideas such as non-fungible tokens (NFTs), central bank digital currencies (CBDCs), and decentralized finance (DeFi). These improvements are reshaping how we see and interact with the financial system. The evolution of cryptocurrency has been an impressive journey, beginning with the trailblazing Bitcoin and spreading to the diverse world of altcoins.
Comparing Bitcoin to Other Coins
Cryptocurrencies are taking the world by surprise, and Bitcoin is the unsurprising leader among other cryptocurrencies. Altcoins developed after Bitcoin have capabilities, use cases, and unique features that differentiate them from Bitcoin. Altcoins can be divided into several categories: Stablecoins, Smart Contract Platforms, Utility Tokens, Privacy Coins, and Payment Coins.
As the first cryptocurrency, Bitcoin has some critical differences from other digital currencies, including market dominance, mining algorithm, transaction speed, and brand recognition.
While Bitcoin remains the dominant and most reliable cryptocurrency, over 10,000 other cryptocurrencies have potential benefits and unique features. Knowing their differences and noting which best aligns with your risk tolerance and investment goals is essential.
Investment Consideration
Choosing the best coin to buy can be difficult because thousands of coins are available today. However, the most essential factor to note is the reason for your investment.
If you are looking for a widely accepted cryptocurrency with the highest market capitalization and the most extensive network of users & supporters, then Bitcoin is for you. Bitcoin has been around forever and has stamped itself as the god of cryptocurrencies. Bitcoin offers higher liquidity than any other altcoin, and as such, price swings are less minimal but still higher than those of different financial markets. These can benefit short-term traders such as scalpers that use leverage with solid risk management techniques.
However, other cryptocurrencies are for you if you want a cryptocurrency that offers distinct features or specializes in a particular use case. For example, if you fancy decentralized finance (DeFi), then Ethereum is what you need. Developers use the Ethereum blockchain platform to build decentralized applications (dApps), and it has become the platform to go for DeFi projects.
Another factor to note is cryptocurrency’s volatility. Altcoins offer more price swings, which can benefit longer-term investors.
The Gold Standard of Cryptocurrencies With Evolving Alternatives
Bitcoin is the heart and gold standard of cryptocurrencies. It is widely accepted and used by many people as a medium of exchange and store of value. No cryptocurrency has the same trust, liquidity, and security as Bitcoin. As such, Bitcoin continues to be the best, most widely used, and most popular cryptocurrency today. However, other altcoins, such as Ethereum and Solana, offer use cases that are different from those of Bitcoin.
