If you are asking this question, it means you have been studying the cryptocurrency market and have noticed how the price of bitcoin affects the prices of other cryptocurrencies. When the price of bitcoin increases, that other cryptocurrencies will follow suit. Interestingly, the same thing happens when the price of bitcoin goes down. Because bitcoin is preferred by many, it largely influences other cryptocurrencies. Below are the reasons bitcoin is preferred compared to other cryptocurrencies.
Has a Large User Base
Do you know that there are over 10 million bitcoin wallets in the world? This is because many people are investing in technology and are searching for secure and fast means of making payments. Because of the large user base bitcoin has, its value is constantly increasing compared to other cryptocurrencies. But that’s not all. A large user base also adds to the popularity of bitcoin and helps to attract more investors. Bitcoin is attracting more investors and is increasing in popularity and that’s the reason its price is also accelerating.
It is the First Digital Currency
Another reason why bitcoin is preferred compared to other cryptocurrencies is because of its early appearance on the market. Besides launching the digital money idea, bitcoin also introduced a technology. The blockchain technology on which bitcoin is built is now a success and is adopted in other areas besides cryptocurrency. When new investors and users want to take part in blockchain technology, they end up with bitcoin. This is because it is the most popular and widely recognized cryptocurrency.
It is Endorsed by Popular Brands
Big brands in the business accept bitcoin as a payment option in 2018. Because a lot of giant organizations are showing their support for bitcoin, its price, popularity, and recognition are always increasing. Clients of these brands who are looking for a simple and less time-consuming method for carrying out financial transactions will request bitcoin, thereby boosting its demand.
It Has a Secure Network
Bitcoin has a more secure network than other cryptocurrencies. This is because it uses a decentralized network, also known as a blockchain, that allows easy and swift transactions without the involvement of a third party. Interestingly, you can find over 18 million users who are actively taking part in blockchain technology. Because blockchain technology has many participants who ensure that the network is completely decentralized, all payments made with bitcoin are secure.
Many Cryptocurrencies are Bitcoin Clones
Other cryptocurrencies, like bitcoin cash and litecoin were made to be flexible and faster versions of bitcoin. Instead of becoming a better version of bitcoin, these cryptocurrencies ended up following bitcoin’s lead. Interestingly, most investors now convert their fiat currencies to bitcoin before trading other cryptocurrencies.
Conclusion
Because it is the first cryptocurrency, bitcoin has the largest user base, which makes its network decentralized and constantly increases its value. Interestingly, most investors will check the price of bitcoin before selling or buying or cryptocurrencies. This is because bitcoin has the final say in the cryptocurrency market. With OSOM Insights you can learn more about bitcoin.
