Bitcoin is often predicted as the future of digital money and dubbed as digital gold, whereas its counterpart, Ethereum, is associated with silver gold. However, cryptocurrencies don’t act like gold. Unlike this precious metal, Bitcoin is set to face scarcity, and its supply is finite, with a coin limit of 21 million that won’t be exceeded once this digital currency reaches it. Why would its developers build an asset centred around a limited coin supply? And where’s Bitcoin heading once each token is mined? These two questions frequently pop into the minds of newbies to cryptocurrencies who know that crypto investments go beyond checking the Bitcoin price today.
Spilling the tea, the truth is that the finite coin supply is expected to be met many years down the road. As the craze around cryptocurrencies is justified and the oldest and most reliable one – Bitcoin – makes a good store of value, it might enjoy the same popularity that brought it to fame in its golden days.
The world was in a frenzy when this investment tool experienced its all-time high in November 2021, with investor sentiment reaching unprecedented levels. However, it’s no secret that the cryptocurrency market has been in for a wild ride since then. Last year was among the most turbulent ones investors have ever had to bear: the decline of several crypto empires, market tantrums, and significant amounts of digital currency sold as a consequence.
But 2023 started on a more positive note, with the Bitcoin price slowly but surely recovering from the wreckage and bringing its peers up with it as well. Investor sentiment is again bullish, meaning that learning the ins and outs of cryptocurrency starts with the world’s cryptocurrency commander – Bitcoin.
The leading digital currency ranks the highest for a reason, so let’s discover what makes it a safe bet when diving into cryptocurrency’s unknown and unpredictable waters.
Bitcoin is the world’s favourite cryptocurrency
Although Bitcoin was the first successful attempt to create a viable and accepted cryptocurrency, there were several attempts before it saw the light of day. The desire for decentralised finance to enter the economic world was intense and backed by developers who believed in the potential of a decentralised system where each individual has control of their funds and transactions. While the advantages of decentralisation in the financial sector are undeniable, it’s unsurprising that cryptocurrencies will undergo their fair share of transformations until they become as well-implemented as other traditional investment tools.
The crypto market fought through turbulence and struggles throughout time, being faced with both excitement and scepticism. If institutions initially put cryptocurrencies up against the wall, they’ve lately started to warm up to the idea and seek ways to experiment with it. And when it comes to the business area, many enterprises have been turning to Bitcoin as a venture to diversify the range of payment methods offered to clients.
Bitcoin won doubters over
The big “B” went through a journey that’s been anything but smooth, experiencing many dips and pumps as different factors impacted the market. Growth in Bitcoin’s adoption started at a slow pace, in part because it was a novelty technology and lacked the necessary infrastructure. Only a few hobbyists would transact in Bitcoin, which was regarded more as a revolution in software engineering than a potentially transformative financial phenomenon. It was initially worth next to nothing, and it wasn’t until February 2011 that it reached $1. That was the moment the show began, and its trajectory started to change. By June of that year, it had shot up 30 times, with its popularity going hand in hand with increasing adoption.
The following years saw increasing media coverage as celebrities would shine a light on this new technology and tout it on different social media channels. This made investors consider jumping on the trend to attract more customers, especially those supportive of digital money and its advantages.
Since its all-time high in November 2021, the price trajectory of the reigning cryptocurrency has begun to change as it struggled with the rest of the market. However, fluctuations and downfalls are nothing new in the financial market. They happen, on average, every several years, lasting longer in the cryptocurrency sphere owing to their relative novelty on the scene compared with traditional assets.
Bitcoin shows the largest acceptance
Bitcoin has grown to become the most widely accepted cryptocurrency, inspiring other similar projects to be created. Several of the most powerful features sustaining the popularity of this cryptocurrency include the facilitation of remote trading and the use of security mechanisms. If you plan to buy Bitcoin for investment or trading purposes, you can create an account on a large and widely-used exchange and start your journey.
The most popular brands in the world have started to accept crypto payments and market their new addition through social media, blogging, and eventually, leading to word-of-mouth, where the news was spread and clients won over. Bitcoin’s use cases led major companies to accept it as a form of payment in exchange for their offerings, with Microsoft, Wikipedia, Whole Foods, KFC, and Home Depot being just some of the big names on the list.
Final take
With the inception of 2023, the crypto market shows signs of recovery, leading to increased investor engagement and hopes for a brighter future for Bitcoin. Institutional money was poured into this industry along the way, and more and more countries are looking to regulate Bitcoin and create a safe environment in which it can develop.
The internet abounds with trading tips, pieces of advice, and predictions. However, as a general rule of thumb, choosing the most well-known and traded digital coins is recommended when dipping your toes into the crypto waters. And since Bitcoin is the world’s leading cryptocurrency and the project that paved the way for its peers, it’s no surprise that investors rely on it when making long-term investment strategies.
