Bitcoin’s strong suits: how the crypto leader came to be

The fact that Bitcoin is the most valuable, legitimate, and recognizable cryptocurrency in the market is a secret to no one. Its dominance is absolute and undisputed. But have you ever wondered how Bitcoin got here? It took a special combination of factors to turn what was once a fringe innovation, known to only a few, into a top cryptocurrency and the creator and leader of a brand-new industry that promises to change the global financial landscape forever. 

When it comes to crypto, everything seems to revolve around Bitcoin. It’s as if the crypto ecosystem functions like a solar system, where Bitcoin sits at the center like the sun, exerting a force that influences the trajectories of all altcoins, making them orbit around it like diverse and distant planets. 

This explains why traders and investors are so interested in Bitcoin and all the products related to it, whether it’s BTC futures or exchange-traded funds (ETFs) based on the main crypto. However, it doesn’t explain why Bitcoin is the one at the top, and not one of the many other digital currencies in existence today. 

While industry insiders may have no issues understanding how Bitcoin went from concept to crypto leader, for those who aren’t privy to what’s going on in the crypto space, Bitcoin’s evolution may seem rather curious if not downright incomprehensible. A more in-depth look into Bitcoin’s strengths might help us solve the mystery and find out what went into the making of the crypto trailblazer. 

The first mover advantage

Bitcoin is the first of its kind, and that’s something no one can take away from it. Just like blockchain’s records are immutable and cannot be altered or deleted, crypto’s history can’t be rewritten, and it all starts with Bitcoin. 

Bitcoin gained the first mover advantage by being the first crypto to become known to the public and serving as a foundational blueprint that set the stage for the emergence of all other digital currencies. No matter how many other cryptocurrencies appear in the future, Bitcoin will always remain the archetype.  

The early entry gave Bitcoin a major competitive edge over its peers and turned it into a brand because people will always have the tendency to associate crypto with the coin that initiated this new asset class. Therefore, it’s difficult, if not impossible, for one of Bitcoin’s successors to match or surpass the level of recognition that the original crypto enjoys. 

The vision and fundamentals 

Despite many criticizing it for its vacuousness and artificially created value, Bitcoin wasn’t invented just for the sake of existing and didn’t base its growth on people’s blind trust. Quite the contrary, the general public was very reluctant in the beginning and wanted to do nothing with it. 

Bitcoin advanced in spite of this reluctance, and its development was fueled by the fact that the crypto had and still has a purpose, being backed by strong principles and values. Satoshi Nakamoto, Bitcoin’s anonymous creator, had a clear vision for their invention and laid it all out in the project’s whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System, published in 2008. 

Therefore, Bitcoin was born out of the desire to accomplish great things and address real-world issues, more precisely facilitating access to financial services for unbanked communities around the world, creating a fully digitalized and decentralized monetary system that enables transactions without the involvement of central entities, offering inflation protection, and overall giving people more power and control over their finances. In a time where people are losing trust in traditional financial systems, Bitcoin emerged as a knight in shining armour, promising to offer solutions for many of the money issues people face nowadays. 

The scarcity 

Fiat money, being issued by governments that increase the money supply over time, is susceptible to inflation. Bitcoin, on the other hand, is a deflationary asset by design, a feature that differentiates it from conventional money and many other crypto assets as well. 

While fiat can be printed indefinitely, Bitcoin has a set supply of 21 million coins. Once all these coins are mined and released into circulation, there will be no new Bitcoins entering the market. This hard cap, along with the halving mechanism, which reduces the rate at which new tokens are generated, helps Bitcoin maintain its scarcity and highlight its potential as a hedge against inflation. 

The progress 

Bitcoin is the longest-running crypto, having spent more time in the market than any other digital asset. It didn’t become the household name we know today overnight, but grew and developed gradually over the past 16 years. We can say that Bitcoin has time on its side, which has allowed people to get to know the asset better and slowly accept it as an integral part of the financial system. 

What’s more, contrary to common belief, Bitcoin is still evolving. Many have argued that Bitcoin has fallen behind in terms of innovation and is being overtaken by newer projects that boast more advanced features. The truth is that Bitcoin continues to move forward, integrating new updates, enhancing its functionality, and expanding its applications while also remaining true to its core values and mission.  

The (proven) potential 

Since its emergence, we’ve seen Bitcoin in action in different scenarios and contexts, so there can be no doubt about its functionality. Bitcoin can be used as a payment method, for conducting peer-to-peer transactions, or purchasing an expanding range of goods and services, since the number of companies and organizations accepting digital currency payments keeps expanding. It can also serve as a store of value, due to its ability to maintain its worth over time, offering traders and investors a potentially profitable investment venue.      Other use cases include crowdfunding, online gambling, donations, and remittances.  

All these aspects make Bitcoin a one-of-a-kind asset. Scour the market all you want – you’ll just come to realize that there’s no other crypto quite like Bitcoin, and there likely never will be.