Cryptocurrencies haven’t been around for very long, but these new digital assets have had an enormous impact on the world over the course of their short history. While there are now thousands of different coins on the market, none have yet to rival the power, influence and reputation of the industry’s flagship currency: Bitcoin.
Bitcoin has consistently remained at the top of the crypto pyramid. This is surprising given how notoriously volatile and unpredictable the cryptocurrency industry is. Is Bitcoin untouchable or could it face competition from rival coins? Could something like the Shiba Inu coin dethrone it? Let’s find out.
The History of Bitcoin
Bitcoin was designed and developed by an anonymous figure known as Satoshi Nakamoto. Nobody knows this person’s true identity, and some have theorised that a group of people are in fact behind the cryptocurrency.
Regardless, Bitcoin launched in 2009, but the coin was met with little fanfare. For years, Bitcoin existed on the fringes of public knowledge, used only by computer experts and spoken of only on specialist forums and message boards.
Everyone knows how valuable Bitcoin is today, but it wasn’t always this way. It took seven years for Bitcoin to truly take off, with a boom in 2017 acting as the catalyst that would transform Bitcoin and the wider cryptocurrency.
In December of that year, Bitcoin hit an all-time high of $20,000. This incredible event turned the world’s eyes to cryptocurrencies and triggered the explosion of the industry to the forefront of public consciousness and discourse.
By 2021, Bitcoin was performing even more impressively. In November of that year, the coin hit another all-time high, this time a staggering $68,789.
Bitcoin Today
Bitcoin has fallen away somewhat since the all-time high of November 2021, but the coin is still incredibly valuable. At the time of writing this article, Bitcoin is trading at a price of $26,595.00. This represents growth of 60.16% since the start of the year and of nearly 35% on a YOY basis.
Bitcoin is the most valuable cryptocurrency on the market, and it is also the largest in the sector in terms of market cap, which currently totals $518.33 billion.
Why is Bitcoin so valuable? It’s impossible to pinpoint any one exact reason. Instead, it’s a result of a number of factors that all work together to give Bitcoin the incredible value it enjoys today.
Bitcoin is seen as the flagship cryptocurrency and is synonymous with the industry. When you think of cryptocurrency, you think of Bitcoin. As a result, Bitcoin is associated with all of the benefits cryptocurrencies can offer. Things like decentralisation, rapid transaction speeds, low fees, anonymity and security.
Bitcoin’s Closest Rivals
As we mentioned, Bitcoin is the top coin in terms of value and market cap. However, there are a few currencies that are hot on Bitcoin’s tails. What are these coins?
Ethereum is Bitcoin’s closest rival. It was launched in 2015 and developed by a team of crypto experts. It improved upon the features offered by Bitcoin and created more. It can process transactions faster and allows for the building of apps and tools on its blockchain platform.
Ethereum is the industry’s second-biggest coin by value and market cap. It’s currently trading at a price of $1,630 and has a market cap of $196.06 billion. While these are impressive numbers, they are considerably lower than Bitcoin’s.
After Ethereum, Bitcoin’s closest rivals are Tether and BNB. Tether has a value of $1.00, as it is a stablecoin tied to the US dollar, and a market cap of $83.05 billion. BNB is trading at a price of $213.11 and has a market cap of $32.79 billion.
Could Another Coin Overtake Bitcoin?
Despite competition from other cryptocurrencies, Bitcoin has so far appeared untouchable. It is far and away the biggest coin, both in terms of value of market cap, and the gap is so big that any possible overtake seems increasingly unlikely.
However, as many have come to learn the hard way, nothing should ever be discounted in the world of cryptocurrencies, and events can turn on their heads in the blink of an eye. Both internal and external factors can have a massive impact on the industry and can see long-standing norms broken down in an instant.
Bitcoin is the oldest cryptocurrency, and this is evident when comparing its features and functionality to rivals. On paper, Ethereum is by far the superior coin, and there are numerous other altcoins that offer some truly incredible features.
The cryptocurrency industry is all about innovation and progress. It seems a little strange then that the oldest and arguably most archaic coin is still the top dog. While Bitcoin doesn’t look like moving any time soon, we could well see it fall by the wayside in the future as a result of its technical deficiencies.
Conclusion
There’s no disputing Bitcoin’s dominance. It has long been the crypto king and will likely continue to be for many years to come. However, if the cryptocurrency industry truly wants to move forward and take things to a new level, perhaps it’s time for its flagship coin to step aside and allow for a newer, more advanced currency to lead the way.