As you can see from the title crypto world has been booming ever since the first and the biggest of them was announced. Like anything in the world cryptocurrencies has a lot of difference amongst them and today we will discuss a bit on that topic.
If we decided to go into finer detail this article would be impossible to read which is why we are going to limit ourselves to only important differences between Bitcoin and other 4,000+ cryptocurrencies out there. When we said only important we are regarding only those differences that are meaningful to us as the holders and users of those cryptocurrencies.
There are a lot of details and differences regarding every crypto out there but only some of them should concern a regular user. It’s pretty much the same with FIAT money. Most of us do not know how they are printed, where, what kind of paper and die are they using, what are those numbers on the bills…, you know stuff like that. They are pretty unimportant when you want to enter a grocery store and buy some food. You don’t have to think or even rethink the pieces of paper you are giving away you simply do what is needed.
So, as we implied we will discuss some of the most important differences between Bitcoin and other cryptocurrencies, and if we tend to miss anything you can check www.advfn.com and find a lot more. Let’s start!
One thing that is going to benefit Bitcoin over any other crypto is its popularity. Never mind the fact that it was the first one out there, its innovation and resilience to multiple bad situations over time made it a trustworthy replacement for FIAT money. There is a law that states that the usefulness of anything, in this case, a replacement currency, will exponentially increase once more and more people join that something. In this case, it the Bitcoin and this Metcalfe’s law is proving to be rather correct. When you think about it it all makes sense.
If you had a few 100 or a few 100,000 followers gathered around something it can reach a certain amount of trust and popularity. When you have a following huge as Bitcoin has then there is no doubt that something like that should be passed if the opportunity to own it rises.
The value of bitcoin does rise from the crowd that is backing it up but that is only a part of the story. The other part is its ability to remain on top after so much oscillation on the market it had. When a certain asset rises and falls so hard and so often as Bitcoin did it loses interest due to its volatility, but that is not what happened here and it does stand for something.
Market share is everything and most of us know that. Currently, Bitcoin holds 2/3 of the crypto market share and this is something that makes it believable, plausible and what is more important, it puts trust into new users that keep on pouring. This is what attracted me to this crypto of all things.
Few things might push you towards any kind of financial investment for the future as market share does. It dictates a lot and it is a representative factor when it comes to these or any other similar things. Some other crypto may be cheaper, easily obtainable, uncapped or God knows what else, but if it doesn’t have the dominant market share as Bitcoin does, all of those things fall into the water and do not matter.
Almost everyone talks about this and almost all of you know this. Bitcoin is a very secure crypto and to tell the truth so are most of the other ones, but there is a but. You know when you want to make something new that is supposed to beat the previous ace and you add all these cool features and gadgets, and it does work for a while and attracts attention but it simply isn’t enough. Well, this is the case with Bitcoin and other cryptos out there.
Bitcoin boasts simplicity and its security comes from that. There aren’t a lot of gizmos and gadgets around it that can open a loophole or show a path to security breach it is what it is. You can even see it as a simple but very good knife – you have it, it looks good, it cuts, it can save your life and that is it, it does its purpose.
Now all other cryptocurrencies are like Swiss army knives that are built to beat Bitcoin – they all have multipole gizmos and additional bits that you can use if there is a chance, but will you ever?! Maybe in an instance or two, most likely never. This is where Bitcoin beats all others every time, and this is what keeps it on top of the throne.
Among the plethora of cryptocurrencies Bitcoin is a truly decentralized currency and it is just like the internet – no one person can control it. Even the founder Satoshi Nakamoto, this amorphous figure no one ever met, is gone and he/she/they left the bitcoin to be the first truly decentralized currency.
There is no one person, small group or a company behind it which is ideal and the standard if you really and truly want to have a currency that can be regulated or influenced by one or more persons at any time. All other cryptocurrencies out there have at least a certain amount of centralization which makes them subject to the influence of any kind at any time. That alone is for many people, fed up with similar things in FIAT currency, a huge deal breaker.
Another thing that is drawing us more and more to this crypto, probably more than any other, is the fact it is limited – it has a cap and when all coins are mined that is it! The cap for Bitcoin is 21 million coins and this is something that both draws in people but also makes them uncomfortable – what happens when everything is mined?! We will leave the answer for that some other time because we want to focus on the fact that is limited.
What does that mean? Well to most it means that it will only rise in price, just like it is with everything valuable but limited. You can observe it like gold! We are aware that gold is depleting and that every year we can mine it less and less which is the exact thing that makes gold that valuable. Limiting factor in something that is stable and that has a lot of crowds like Bitcoin and Gold means that its price has to keep rising higher and higher.