By the latest count, the crypto market comprises over 20,000 different coins, some more valuable and noteworthy than others. However, despite the vast and constantly expanding number of options, Bitcoin remains the most popular choice among traders and investors. The fact that Bitcoin is known as the first and top crypto, in terms of value, market cap, and influence, explains why the asset receives so much attention compared to its peers and why people are so interested in the latest BTC price prediction.
Bitcoin’s legacy is undeniable. If it weren’t for Bitcoin, the crypto industry wouldn’t even exist. No matter how many other digital currencies are launched, Bitcoin will always be the first and remain deeply etched in the collective memory as a pioneer and the face of the crypto space.
However, considering that the market has evolved significantly since Bitcoin’s emergence, one can’t help but wonder if Bitcoin is truly the best option or if its first mover advantage, value, and widespread recognition are acting like a barrier that stops people from exploring or even considering the idea that other cryptocurrencies might be better suited for investment.
There’s certainly no shortage of interesting crypto projects available, which makes it hard to understand why none of Bitcoin’s competitors are able to surpass it. A closer examination of Bitcoin’s strengths as opposed to those of altcoins might help us find an answer.
The network effect
Beyond its growth potential, demonstrated by the massive price appreciation it has experienced over the years, one of the reasons why Bitcoin dominates the industry and is so coveted by so many is the ecosystem surrounding it. Bitcoin is not just a crypto asset anymore, but the foundation of an entire environment that has taken shape due to the network effect.
This means that the more people use Bitcoin, either as a payment method or investment instrument, the more valuable it becomes, and the more its value rises, the more people are drawn to it, in a self-reinforcing cycle. The crypto leader has had plenty of time to attract a large user base and bolster its standing, as this positive loop continues to drive adoption and liquidity, and boost its worth.
Bitcoin is a true force in the crypto industry, holding records in nearly every aspect and area that matters, from the number of exchanges that support it to the number of merchants that accept it, and the number of developers and users it boasts. Bitcoin is also the most traded and liquid crypto, which makes it easier to access.
It’s difficult for other coins to even match, let alone exceed, all these achievements, no matter how promising they might be, simply because they can’t seem to gain the same traction as Bitcoin.
Proven track record
The problem with altcoins is not that they aren’t valuable or viable for investing, but that it’s difficult to tell which ones are truly reliable and have the biggest potential because there are simply too many of them. Even though some might have innovative features that make them superior to Bitcoin in certain ways, such as transaction speed and costs, many traders and investors are put off by the effort and time expenditure it would require to analyze them all and see which would make a solid investment.
On the other hand, with Bitcoin, things are a lot simpler because you kind of know what you get since it has been in existence for longer than any other cryptocurrency. The crypto market offers no guarantees, but it’s definitely less risky to invest in an asset that has proven its resilience and strength over and over again, and whose behavior and performance have been studied by analysts for years, than to put your trust and funds into a coin that’s only been around for a short while. So, for those who want to keep things simple and straightforward, investing in Bitcoin is a no-brainer.
Institutional participation
Institutional interest in crypto has been on the rise recently, and Bitcoin has been the primary beneficiary of this growing interest. The approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) last year cemented Bitcoin’s standing in the financial space and prompted more institutional capital to flow into it.
Having Bitcoin included in investment products provided by reputable asset managers and making it easily accessible to a larger number of investors via traditional brokerage accounts serves as a confirmation of its legitimacy and growing mainstream adoption. This creates a safe space for investing in Bitcoin, which provides investors with reassurance and encourages them to choose Bitcoin over other crypto assets.
The case for altcoins
Bitcoin has a lot going for it, but it also presents several shortcomings. For starters, the crypto king is extremely expensive, which might make it more attractive, but at the same time, it suggests limited room for significant short-term growth.
Also, most altcoins present technical characteristics that Bitcoin lacks, providing them with a competitive advantage over the main crypto. They offer the same functionalities and benefits as Bitcoin, plus several others on top of it. Many altcoins have risen precisely because they have niche use cases that highlight their enhanced real-world utility. While this may not be enough to make them better than Bitcoin, it’s still an aspect worth taking into account.
Bottom line
It’s hard to tell if Bitcoin is indeed the best crypto in the market, but it’s certainly the safest and most practical choice for many investors. In the end, the suitability of a crypto asset is a subjective matter that depends on investors’ individual preferences and needs. While some might see Bitcoin as the most adequate crypto to invest in, others might say the same thing about altcoins. It all comes down to what each investor considers important after analyzing the pros and cons of each option.
