Cryptocurrency has been predicted as the future of currency with Bitcoin becoming the most popular of them all. Many people today want to own digital currencies due to their advantages over traditional fiat currency.
Today, there are over 21,000 cryptocurrencies listed by the cryptocurrency data authority, CoinMarketCap. Bitcoin sits on top of this list of digital currencies and has been labeled as the future of money by crypto enthusiasts.
Several other cryptocurrencies other than Bitcoin known as ''Altcoins'' have also been an option for investors and traders. Ethereum (ETH), Cardano (ADA), Tamadoge (TAMA), Dogecoin (DOGE), and the like have features that make them attract investors. However, bitcoin remains the number one crypto asset and it is unique among other cryptocurrencies.
In this article, we'll discuss why Bitcoin is different from other cryptocurrencies. For the sake of beginners, let's learn more about Cryptocurrency and Bitcoin.
What is Cryptocurrency?
Cryptocurrency is any form of currency that exists digitally or virtually. This means that it cannot be held like the traditional currency. As a digital payment system, its transactions are secured by cryptography.
Cryptocurrency is decentralized meaning there's no central issuing or regulatory authority. They are run on a public ledger called Blockchain. This is a record of all transactions updated and held by its holders.
The first cryptocurrency created was Bitcoin, which was founded in 2009 by a person or group with the pseudonym, Satoshi Nakamoto.
Bitcoin remains the biggest and most popular cryptocurrency. There are over 21,000 other cryptocurrencies created after bitcoin which are referred to as "Altcoins". Some of these altcoins include Ethereum, Solana, Tezos, Dogecoin, Litecoin, Cardano, Elrond, and so on.
What is Bitcoin?
Bitcoin is a type of digital currency created for use in peer-to-peer online transactions. It was created in 2008 by a person or group using the name Satoshi Nakamoto.
Bitcoin is the biggest cryptocurrency that exists mainly as computer code. It is decentralized meaning that there is no central issuing authority. It was introduced as a solution to the global financial crisis of 2008.
Satoshi Nakamoto introduced coin trades with the symbol BTC. In November 2021, the price of 1 BTC soared beyond $65,000, setting a new record high. However, the price has been down in 2022. As of this writing, the price of BTC is $18,842.09.
Why Bitcoin is Unique from Other Cryptocurrencies
Bitcoin is unique from other cryptocurrencies due to several reasons. They are discussed below.
1. Network & Security
The bitcoin network effect and its proven security make it one to be modeled after by other cryptocurrencies. Bitcoin has the largest developer ecosystem with more software and more implementations than other crypto assets.
Security is one of the biggest issues with cryptocurrency today. However, bitcoin has proven since its over a decade of existence that it is secure. For this reason, it is top on the list of crypto investors.
2. Store of Value
Bitcoin, which has been referred to as 'digital gold ' can also be used as a store of value like gold. Both can be used as a tool for hedging against inflation.
Bitcoin has a proven usage as a store of value. People can buy bitcoin with gift cards, credit cards or cash and hold it for the long-term which also helps to survive a bear market. For this reason, it has been predicted as the future of money.
Bitcoin is undoubtedly the most accepted cryptocurrency in the world today. In countries like El Salvador and the Central African Republic (CAR), Bitcoin is a legal tender. It is accepted as payment for goods and services.
Companies as well as many merchants all over the world also accept bitcoin for payment of goods and services. This use case has given it a wider acceptance than other cryptocurrencies.
Bitcoin is much more accessible than many other crypto assets. BTC can be accessed in more exchanges, more merchants, more software, and more hardware that support it.
BTC can be purchased and traded on crypto exchanges such as Binance, Coinbase, eToro, etc. P2P platforms are another place to buy/sell Bitcoin. Users can convert bitcoin to naira using digital exchange platforms like Prestmit - you can get the best rate for your crypto assets and gift cards.
Bitcoin's accessibility makes it to be far more liquid, with much larger volumes than every altcoin.
Bitcoin is the largest and most popular cryptocurrency today. Its difference from other cryptocurrencies has made it top on investors' lists and one considered to be future money.