Bitcoin is the best-known and most prominent cryptocurrency. But how much do you know about what Bitcoin did to establish its crypto market dominance?
Bitcoin carved a path for all the other coins that followed – known as alternative coins or altcoins – and what happens to BTC sends ripples throughout the cryptocurrency markets.
For many not well versed in crypto, Bitcoin is interchangeable with the word cryptocurrency.
So, how exactly did BTC become the number one crypto? Here’s how Bitcoin became the market leader.
What Bitcoin Did
Bitcoin was created in 2008 by ‘Satoshi Nakamoto‘. Satoshi has never been publicly identified and remains anonymous to this day.
It launched in January 2009 when the first block was mined on the Bitcoin blockchain.
All those years ago, it was basically worthless. However, in July 2010, when it became publicly available, the value of BTC was $0.08.
Legend has it that in May of that year, 10,000 BTC were exchanged for two pizzas with a value of around $40. Imagine that – handing over 10,000 BTC, with a value of some $190m at today’s prices, for two pizzas…
Bitcoin has, since 2010, been on a steady growth.
This is largely due to the rising profile of cryptocurrency. When BTC launched, few people were interested in digital currency.
As awareness has grown, many investors have turned to Bitcoin, the longest established and best-known digital coin asset, as a ‘safe’ haven for their money.
By being first, Bitcoin has managed to become top dog.
How is Bitcoin Created?
The supply of BTC is limited to 21 million. Presently, 19 million have been mined and are in circulation.
Bitcoin is created through mining, which helps control the circulation of the cryptocurrency and helps maintain the Bitcoin network.
The mining process involves miners trying to solve complex cryptographic problems.
Bitcoin’s Journey
The early days were tough. Cryptocurrency, in the beginning, had a terrible reputation. It was linked to cybercrime and the laundering of criminal proceeds.
As the best-known crypto asset, Bitcoin’s standing was tarnished by this public view.
That, however, did not stop BTC from flourishing from 2010 onwards.
Initially, investors were either impatient or lacking in faith, so the asset changed hands quickly, ensuring values remained low and volatile.
Some held their nerve and have since, no doubt, reaped the benefits.
In just a dozen years from its launch, BTC hit an all-time high of almost $69,000. That was in 2021, and, obviously, the crypto markets stumbled in the first half of this year. Despite that, BTC still holds a value many could only dream of back in 2009/10.
Bitcoin remains the most influential cryptocurrency. Changes in its value seem to determine the market’s movement. When large financial institutions, or even national governments, decide to get involved in crypto, it is usually BTC they select.
Is Bitcoin a Good Investment?
There’s no question that BTC has made many people many millions of dollars. But some investors have lost out, too – just like in any market.
As an established digital asset, it is considered a more reliable investment than newer altcoins, although the potential profit margin isn’t always as high.
So, whether BTC is a good investment or not depends on your risk appetite, your investment period, and what you hope to achieve.
As ever, my advice is:
- carefully consider your investment aims
- ensure you do thorough independent research across multiple sources before choosing to invest
- only risk what you can afford to lose
Conclusion
Bitcoin is so dominant in the cryptocurrency space that many newcomers wonder how it reached the top spot and has stayed there for so long.
Hopefully, this article helps to answer that.
