Why is bitcoin leading the way in crypto?
Bitcoin, the top crypto, has become synonymous with the word crypto. In fact, many people use the word to refer to crypto in general. Despite being the first-ever cryptocurrency developed and using blockchain technology and having difficulties like limited supply (which is one of its key features) and lengthy transaction confirmation times, it’s still the favorite cryptocurrency in the world. We have had better technologies available since the inception of bitcoin, but this currency’s backers seem to have a special relationship because while there has been a lot of support for Ethereum, Ripple, and other cryptocurrencies, it’s mostly due to fear of missing out on an opportunity like bitcoin. So how did bitcoin become the staple of cryptocurrencies?
Bitcoin vs. other coins
What’s the difference between bitcoin and other cryptocurrencies?
Bitcoin’s founder, Satoshi Nakamoto, is still a mystery to all of us. Nobody knows where he is or what he does and, in some cases, whether he even exists. But bitcoin’s creation and the technologies that accompany it have changed the world forever, and maybe it’s the most popular one because it was the first one. But a lot of people think it’s different because there is no one behind it. Think Ethereum; it has a foundation, a creator, and companies building on it. People don’t trust it as much as bitcoin. Because they are both truly decentralized systems, Ethereum is being controlled by someone, at least to some extent, whereas bitcoin is not, and that presents the image that people who own it will get a say in it to the amount that they own. That is the sexy part about bitcoin. Tether, Ripple, and Tron are all good, but companies are operating them, and that’s what’s different. The driving force is the company’s effort, not the community.
When first introduced, bitcoin has labeled a scam, even by people like Warren Buffett. Some people called it a pyramid scheme because of its mining procedure and reward system. But today, when it has become mainstream and recognized in many countries like South Korea and even an official currency in El Salvador, everybody is backing it. Mark Cuban, the billionaire owner of the Dallas Mavericks, is a major supporter. Elon Musk is famously an advocate for bitcoin. He has admitted that he is an investor in it and his company, TESLA, owned 2.5 billion dollars in bitcoin and even accepted it as a form of payment for its electric cars. Big Banks like JP Morgan and Goldman Sachs have also chipped in by introducing options and futures.
While bitcoin might not need it, it has a lot of institutional backers now.
Cameron and Tylor Winklevoss, mostly known as the Winklevoss twins, are two of the largest bitcoin holders, reportedly owning more than 100000 bitcoins. They had stated that they won’t sell until bitcoin reaches 500000 dollars. The Winklevoss twins claimed that they had the idea for Facebook and Mark Zuckerberg stole it. Kyle Davis and Su Zhou are former credit Suisse traders who own a fund with more than 22 billion dollars of bitcoin. But the grand prize goes to the anonymous man himself. Satoshi Nakamoto has around 1 million bitcoins in his wallets that have been dormant for a long time. Therefore, if Satoshi exists and is a real human being (not a corporation), his net worth is around 37 billion dollars just from bitcoin and just since 2008. Many other institutions and banks own a lot of bitcoin as well, and the list goes on and on.
Bitcoin was the first cryptocurrency and as the famous quote mentions, first is always special. But Bitcoin’s importance is its introduction of a truly decentralized system to the world. Up until bitcoin, there was not a single system that really represented decentralization. Bitcoin’s system of transparency and democracy and access of all people to it, by mining, has made it a universal symbol of currency, and there is no indication of it ever being weakened.
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