Cryptocurrency may be growing but that doesn’t mean all digital coins are treated equally. Whereas some coins have never been heard of outside of circles who are in the crypto know, nearly everyone who has heard cryptocurrency uttered before will know about Bitcoin.
Bitcoin is the most successful form of cryptocurrency to date. It was also the first crypto launched and works form the much celebrate blockchain technology. Its biggest challenger is Ethereum, but this one does not have the same value, social awareness or even intentions as Bitcoin. Ultimately Bitcoin’s biggest challenger is not even really cut from the same cloth.
Read on to learn more on why Bitcoin is so dominant, if it will continue to dominate – and what that would mean for altcoins.
Why is Bitcoin So Dominant?
There are many reasons why Bitcoin is so popular in finance and business. For one, it was the first crypto on the scene and had a head start on all the other coins around today. It got to the market first of those that wanted cheaper, faster and more convenient peer-to-peer payment options. It also includes the use of wallets. So for example, the Luno Bitcoin wallet is designed so you gain full control over your Bitcoin finances with bulletproof protection from hackers.
However, one of the major reasons why Bitcoin has flourished and dominated the market is because of the technology it is powered by. Blockchain technology is a revolution in financial transactions but can also be recycled into other areas away from finances.
Will it Continue to Dominate?
The value of Bitcoin may be somewhat of a rollercoaster, but throughout the coin’s volatility and triumphs one thing has always increased, and that is its uses. Bitcoin may have once been something traded between niche groups across the globe, but now it is something being accepted in fast-food chains, tax offices, travel websites and more.
Bitcoin is seeping into different industries at an alarming speed and it is almost certain to continue to dominate over other cryptocurrencies. Realistically, it would be difficult for any altcoin to take over Bitcoin at this stage.
What Does that Mean for Altcoins?
There are differing opinions on what a strong Bitcoin will do for altcoins. As a basic rule, altcoins need to stay “interesting” for Bitcoin to survive because it relies on trading between them. When Bitcoin has its purple patches and surges in value, the usual trends also show that altcoins surge as well. This has been put down to interest and people also wanting to try and make it rich from crypto. When they see Bitcoin doing so well, the demand for altcoins also grows in the hope it can be as successful in time.