As compared to other cryptocurrencies, Bitcoin is the most stable, given value by its users, supply and demand. It’s suitable for the average investor seeking stability and growth over the long term, but obviously, you won’t become an overnight millionaire. If you’ve never traded before or made any type of profit, it’s a good idea to start slow. There’s hope one day, if you stay diligent and responsible. Bitcoin reached an all-time high in 2024, as values exceeded $73,000, which can be explained by the launch of the first-ever spot Bitcoin ETF in the United States. The next halving is expected to take place somewhere in early to mid-April, possibly resulting in a bullish overall cryptocurrency market.
So, what are the chances of Bitcoin being overtaken by other cryptocurrencies? Innovative advances in competing altcoins aren’t enough to top Bitcoin’s success. Indeed, Bitcoin’s underlying blockchain protocol is restrictive as far as broader financial applications are concerned. Still, for a coin to overtake it, it would call for important breakthroughs, widespread adoption, and compelling reasons to buy. Bitcoin remains one of the most popular and majorly adopted cryptocurrencies worldwide. The rise in visibility, growing interest of investors, and supporting regulations will further augment the market’s expansion. The best way to buy Bitcoin is through a crypto exchange or a trading app.
Bitcoin is the one and only cryptocurrency because:
It Was the First Cryptocurrency Ever Created
Initially conceived as a medium of exchange, Bitcoin is now used as a store of value. The history of the first cryptocurrency started with its invention and implementation by Satoshi Nakamoto in January 2009. Bitcoin was built on blockchain technology, an advanced database or ledger that empowers transparent information sharing within the network. Bitcoin is unquestionably Nakamoto’s creation, yet blockchain technology was invented in another time and place. To be more precise, David Lee Chaum outlined a blockchain database in his dissertation years before the invention of Bitcoin. He’s now recognized as the inventor of digital cash.
The core of the Bitcoin ideology is to remove money from social and governmental control. The cryptocurrency’s initial support base comprised tech-savvy individuals, libertarians, and even anarchists, so it shouldn’t come as a surprise that Bitcoin was released to change the world. Many argue that Bitcoin isn’t merely money – it’s a movement. Its aim is to unleash oppressed economies, crackdown on the world’s biggest banks, and start a war against the Federal Reserve. The whitepaper, Bitcoin: A Peer-To-Peer Electronic Cash System, which describes the original plan and protocol for the cryptocurrency, was essentially a political document that attracted countless followers.
It Has a Controlled Supply
In a fully decentralized money system, no central authority regulates the monetary base. Bitcoin is created by the nodes of the peer-to-peer system, distributed across multiple computers within the network; each node has a copy of the blockchain and every copy is updated everywhere. The Bitcoin algorithm defines, ahead of time, how the cryptocurrency is created and, most importantly, at what rate. Coins are created every time a user discovers a new block. The number of Bitcoins is set to decrease geometrically, with a 50% reduction every 210,000 blocks. Halvings will occur until all 21 million coins will have been minted.
The Bitcoin halving addresses inflationary issues by lowering the reward amount and maintaining scarcity. Litecoin experiences halvings, too – they occur after every 840,000 blocks. As we can see, the halving event isn’t exclusive to Bitcoin. Getting back on topic, when Bitcoin’s mining reward is cut in half, the number of new coins is cut in half as well, creating a scarcity that tends to increase the cryptocurrency’s value. It’s precisely this scarcity that makes Bitcoin a credible store of value, preserving wealth over long periods of time. Simply put, the halving is a milestone in the cryptocurrency’s evolution as a mature financial asset; it’s strong evidence of Nakamoto’s visionary foresight.
It’s Offered Through ETFs in The US Now
Trading cryptocurrency can be daunting and complex, especially for beginners. Consequently, ETFs make excellent investment vehicles for small market participants looking to diversify their portfolios without increasing time and effort. Even if the Bitcoin industry takes pride in its outsider status, it enjoys support from regulators and financial institutions. Following ten years of unsuccessful attempts, the SEC (Securities and Exchange Commission) approved the first spot Bitcoin ETF in the United States. An entirely new generation of customers is buying cryptocurrency indirectly via ETFs from trusted names like BlackRock or Fidelity. And Bitcoin ETFs are just the beginning.
It’s necessary to have a good understanding of the particulars of ETFs so you’re not caught off guard should anything happen. For example, ETFs have low liquidity, meaning if there’s trading interest, you can get out without moving the Bitcoin price. Conversely, if the ETF is thinly traded, it’s hard, if not impossible, to get out of the investment. According to the experts, ETFs are pulling all the Bitcoin available for purchase, and the tipping point in the supply dynamics might come this year. More exactly, the price impact may be beyond market expectations.
It’s Inherently Anti-Regulation
Bitcoin is the first decentralized digital currency – it’s not tied to any state or authority, so it can be used for any transaction anywhere. Any person can participate in the blockchain and perform transactions without any kind of review by an intermediary or central authority. The transactions on the contracts are transparent but encrypted, meaning that they’re free from human failure. The SEC doesn’t view Bitcoin as a security on account of its anonymous and open-source nature. Nevertheless, other cryptocurrencies are defined as securities and are, therefore, subject to federal regulations. Bitcoin has been determined a commodity under the Commodity Exchange Act (CEA), meaning it can be freely transacted on traditional asset markets.
The regulatory landscape for cryptocurrency isn’t well-defined, gradually developing and changing into other forms. The unique characteristics of Bitcoin pose challenges for regulators seeking to protect the interests of consumers and combat illegal activity. A comprehensive legal foundation is paramount for promoting widespread adoption, but cryptocurrency regulation can have both positive and negative impacts. For example, it might hinder innovation and limit the potential for growth of the cryptocurrency industry.