Ever since the crypto-mania engulfed us, Bitcoin has always been at the forefront of the mayhem.
It was the first cryptocurrency that was innovated way back in 2007-08 by Satoshi Nakamoto.
Ever since then, it has enjoyed its status of being the pre-eminent crypto for investors all over the world.
At the current count, there are more than 100+ cryptocurrencies in circulation today.
Hundreds have come before, and they have disappeared as well. The success of Bitcoin has played a major role in lending technologies, ideas, and philosophies to so many other cryptocurrencies like Ethereum, Litecoin, XRP, and others.
In this article, we are going to understand what is the biggest benefit of Bitcoin and why?
If you are someone who wants to start investing in this domain. Are you finding it difficult to make a decision on Cryptocurrency investment? Then this article will help you make your decision.
What Is The Biggest Benefit of Bitcoin And Why?
The answer to the question, “what is the biggest benefit of Bitcoin and why?” is embedded in this section. Yes, in this section we discuss a few reasons to understand why Bitcoin is superior to other Cryptocurrencies.
1. Mainstream Adoption-
As compared to any other cryptocurrency, Bitcoin’s adoption has been truly global.
It has really enjoyed the first mover’s advantage and put it to great use.
For most investors and traders the world over, Bitcoin was their first foray into cryptocurrency. There have been many others that have tried to displace Bitcoin, but it is very difficult to top its global market cap.
2. Government Preference-
Countries that are already grappling with understanding issues surrounding cryptocurrencies cannot afford to deal with too many at the same time.
As Bitcoin has attained a huge name and fame and enjoys a massive following and a great market cap, governments are more likely to engage with it in terms of legality, formality, and taxes.
3. Growth Margins-
There is no doubt that no other cryptocurrency has been able to give as high returns as Bitcoin has. In fact, it has made normal citizens millionaires overnight!
Such has been the growth that Bitcoin has seen, and no other asset, let alone cryptocurrencies, has been able to match the same.
This is another way of saying that it enjoys investor confidence on a massive level.
4. Solid Foundations-
Innumerable cyber experts and criminals have tried to attach the technical and software foundations of Bitcoin.
However, Nakamoto’s Blockchain technology is as impenetrable as it ever was.
This safety and security inspire investor confidence, knowing that experts or criminals cannot hack the entire financial network. This is something others cannot guarantee.
5. Asset Value-
While many other altcoins have come about promoting one thing or another, Bitcoin has emerged as a major source of value.
In other words, it has emerged as a serious asset class similar to gold or real estate for investors. Altcoins have often been touted as a ‘joke’, but Bitcoin is different. It is serious in nature and attracts a different kind of investor.
Blockchain Bitcoin
While we discussed “What is the biggest benefit of Bitcoin and why?” we went through different benefits to get a clear picture. One of these is that they are decentralized.
But how come it is possible? With the Blockchain technology. Hence, the discussion of Bitcoin without Blockchain is null and void.
Blockchain is a distributed ledger. It is a shared database where information gets recorded, distributed, and stored in a network of computers rather than a centralized service.
A block on the Blockchain is a file that contains a block header and transaction counter.
Transactions get recorded in them. Moreover, these transactions counter the lists of transactions in the block.
As noted, each block contains the hashed information of the previous block. This helps create a chain of encrypted blocks that contain information from the previous blocks.
Buying Bitcoin
There are cryptocurrency exchanges where you can buy Bitcoin.
Most people won’t be able to purchase Bitcoin because of its high value. But you can purchase a small portion of them in cash, like USD. For example, you can buy Bitcoin on Coinbase by creating and funding an account with the help of a bank account.
What Is Bitcoin Mining?
The discussion “What is the biggest benefit of Bitcoin mining and why” is not complete without Bitcoin mining. Yes, there are still many who do not have an idea about what Bitcoin mining is all about.
Actually, it is the process that maintains the Bitcoins and also creates the new Bitcoins. The transactions on Bitcoins are broadcast publicly on the networks. Miners bundle the large collections of the transactions and block them by completing a Cryptographic circulation. This is extremely hard to generate but, at the same time, very easy to verify.
The first miner who solves the next block broadcasts it to the network. Now, if the solver is correct, it gets an addition to the Blockchain. The miners are rewarded with the amount of the newly created bitcoin.
Bitcoin has a hard limit of 21 million coins. Thereafter, it will not be in existence. However, the total number of Bitcoins will be in circulation by the year 2040. With each passing day, the mining software will make it difficult for miners to attain them. Etc.
Will Other Altcoins Be Able To Overtake Bitcoin’s Market Cap And Popularity?
If you have been following conversations on cryptocurrencies, you will notice how Ethereum or Ether is being talked about.
Many commentators say that Ether aims to eradicate any negative points that come with Bitcoin.
In terms of returns, it has also shown a climb (in percentage terms) that can be compared with Bitcoin.
However, while Ethereum continues to grow, Bitcoin also does not show any signs of stopping. In fact, for most investors, the choice is between Ethereum and Bitcoin.
Even if Ethereum continues with its growth rate, it will be a very long time before it can catch up to Bitcoin. Mentioning any other altcoin in the same league as Bitcoin would be disrespectful to Satoshi Nakamoto’s creation.
Other Altcoins are gimmicky in their approach and have failed to attract the interests of serious investors and governments. Bitcoin will continue to grow as formal engagements with governments and institutional investors continue. This is showing no signs of slowing down.
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