While altcoins can decide what trends will become popular as time goes by, the king of cryptocurrencies has always been Bitcoin. It’s fascinating to see that many altcoins come and go, but Bitcoin has never been able to be dethroned. There were close “flippening” moments, but eventually, Bitcoin remains the most valuable cryptocurrency in the world. And for your information, flippening in cryptocurrency is the event where Bitcoin can be dethroned by an altcoin in terms of market cap valuation.
So, why has Bitcoin been so special? They say Bitcoin is slow. They say Bitcoin transaction fees are expensive. And yet, nobody is able to fight the king. Let’s see what makes Bitcoin hard to beat in its own game.
Undoubtedly, this is perhaps Bitcoin’s biggest advantage over other cryptocurrencies. Bitcoin has a first-mover advantage and almost everybody who’s been in crypto trading space for years knows what Bitcoin is. In many places, the name cryptocurrency itself is already synonymous with Bitcoin.
The fact that Bitcoin was the first cryptocurrency that popularized the blockchain and the idea of decentralization has said it all. There’s no other cryptocurrency that successfully began such a movement and political statement against fiat currencies.
While first-mover advantage wouldn’t really last in the tech space (look at Facebook in social networking competition or Google in search engine competition, they weren’t the first), the fact remains that Bitcoin is much more popular than Ethereum or Cardano or others due to its reputation being the first. And it might take a long time before any project can dethrone BTC.
The First To Introduce Deflationary Mechanism
Bitcoin was designed to be the anti-fiat. Unlike fiat currencies where the Fed’s money-printing machine has been able to save the economy over and over again at the expense of the average citizen, Bitcoin was naturally designed to have a deflationary mechanism.
Yes, Bitcoin’s newer supply has gradually become much harder in recent years compared to in its first few years. When there are more hash powers and more competition among the miners, Bitcoin’s newer supply would become even harder to produce. And don’t forget its halving mechanism every approximately four years – which has helped Bitcoin demand to go up while new supply remains stagnant.
Bitcoin’s deflationary mechanism reminds people of gold where no central authority can easily print it out of nowhere. The fact that both markets can go up during the time of coronavirus pandemic probably has successfully cemented Bitcoin’s reputation as the true decentralized digital gold.
Anti-Fiat Political Statement
Not all governments hate Bitcoin. Some of them welcome Bitcoin with open arms while some others want to outright ban it. But whatever your government opinion on Bitcoin is, nobody can deny that Satoshi Nakamoto (creator of Bitcoin) invented it for a political statement. Yes, Bitcoin was the direct result of 2008’s global financial crisis.
Satoshi Nakamoto and early Bitcoin adopters (which many of them were hardcore libertarians) believed that Bitcoin was designed to make a political statement against central bank policies to print fiat currencies at will. They believe Bitcoin adoption would make their political statement become more noticeable as central banks rarely have any long-term solution to ever-increasing food prices apart from printing more money to create more debt.
While some altcoins have adopted the same approach and tokenomics, none of them has been symbolized as much as BTC. Yes, there are people who have almost no faith in fiat currencies, and they buy BTC just to “preserve” their future wealth. To buy BTC is a political statement that cryptocurrency is the people’s movement to take back what’s financially and rightfully theirs.
At the end of the day, it’s not only about technology. Yes, there are more efficient cryptocurrencies out there. There are faster cryptocurrencies out there. But, Bitcoin has been the only one that has successfully achieved the three factors above. Even the ones who put most of their money in altcoins typically still believe that Bitcoin is the next digital gold. This is perhaps the ultimate reason why Bitcoin remains the king of cryptocurrencies.