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bitcoin will remain the most popular crypto - here's why

Why Bitcoin Will Remain The Most Popular Cryptocurrency In The World

Published On: July 27, 2022
Bitcoin was founded in 2009 by an anonymous person or group of people using the name Satoshi Nakamoto. Ever since then, it has become a household name all over the world. Even though there are multiple other cryptocurrencies that exist today, bitcoin remains the most popular, above others.

The following article explains how and why bitcoin will remain the most popular cryptocurrency despite competition from the likes of Ethereum.

How Bitcoin Has Become The Most Popular Crypto

It's hard to imagine that just slightly over a decade ago; Bitcoin was nothing more than a concept. 

In 2016, bitcoin became more mainstream with the advent of its use in various online stores. In 2017, its popularity grew even further due to its use on online gambling sites. When prices kept going up, some people made up narratives like "digital gold", and thus, it has become very popular among mainstream investors.

Today, Bitcoin is not only used as a way to purchase things online but also for making investments, trading, and speculating. 

While Bitcoin might have limited features compared to newer cryptocurrencies (such as Ethereum or Polygon), its brand name and its first-mover advantage are the reason why it remains the most popular crypto up to this day. In fact, the more mainstream other cryptocurrencies become, the more popular Bitcoin will be since the name "Bitcoin" has become synonymous with the term "crypto" itself. 

Why Bitcoin Will Remain The Most Famous Among All

BTC has the first mover advantage compared to others
Bitcoin is unique because of its decentralized nature. Its entire network is built on top of peer-to-peer technology, which means that no single entity controls it. This gives bitcoin the ability to operate without any central authority or government control.

This decentralized nature makes bitcoin secure and stable against attacks. Unlike other traditional currencies, bitcoin's inflation rate has been hard-coded from the very beginning, with the concept of halving every approximately four years, and it does not rely on any central entity. It uses cryptography to secure transactions, which prevents third parties from altering the data.

Compared to most other cryptocurrencies, Bitcoin has remained to be the most decentralized. Look at most of the popular alternative chains; many of their nodes are just controlled by their own blockchain foundations with 2-3 additional partners (who are usually very close to the foundations themselves).

Another reason why Bitcoin is so popular is that it is widely accepted across the globe. Since its inception, bitcoin has already gained a lot of traction in many developing countries, and it remains popular these days, despite 2022's market crash.

There are several reasons why these merchants choose to adopt bitcoin as their payment method. For example, they can offer discounts to customers who pay them in bitcoin. They can also receive tax rebates in certain countries if they accept bitcoin.

Another major benefit of using bitcoin is that it allows users to keep their personal information private. This is possible because every bitcoin transaction is recorded in public blockchains. This means that anyone can view the details of your transactions. But if you want to keep your identity secret, you can use pseudonyms instead of real names while doing business on websites that support bitcoin.

Apart from offering security, privacy, and anonymity, bitcoin offers better protection against fraud compared to credit cards. Because of its decentralized nature, fraudulent transactions cannot be reversed. 

Bitcoin vs. Ethereum

bitcoin vs. ethereum - which one is better?
So, how about Ethereum? It is the second most popular cryptocurrency after Bitcoin itself. Will we ever see "flippening" where Ethereum would surpass Bitcoin?

Well, Ethereum is a blockchain platform that allows developers to build decentralized apps (dApps) on the platform. dApps are software applications that run on top of the Ethereum blockchain. It's similar to how you develop and manage your apps, but you deploy them on a decentralized network instead.

Ethereum became super popular after it became the de-facto platform to launch new tokens (ERC-20) during the ICO craze in 2017. The use case of smart contracts remains super popular to this day, and Ethereum remains the second best crypto by market cap, behind Bitcoin itself.

Although both bitcoin and Ethereum use blockchain technology, they differ significantly in terms of design and implementation. While Bitcoin focuses mainly on financial transactions, Ethereum aims to create platforms that facilitate the development of decentralized applications.

Both technologies are open source, meaning that their code is freely available for everyone to study and modify. Furthermore, both are designed to be accessible to anyone regardless of technical knowledge.
With regard to scalability issues, Ethereum is designed to be more scalable than bitcoin. 

However, Ethereum suffers from the same problem as bitcoin does— it can be super slow at times. The reason behind this is that it takes too long for transactions to get approved and processed. This is because all transactions must go through Ethereum's network before they're added to the blockchain.

To solve this issue, Ethereum plans to migrate to a different consensus called proof-of-stake. The idea here is that instead of miners validating transactions, a special set of validators will be chosen. Their job will be to verify transactions and approve them within a short period of time.

Can Ethereum ever surpass Bitcoin? We don't know. But so far, it looks like Bitcoin only gains more popularity every time there are more Ethereum users. As mentioned earlier, the name Bitcoin is already synonymous with the term cryptocurrency itself. The first-mover advantage is a real superpower.

Conclusion

There are many benefits of using bitcoin and Ethereum. Both are highly secure and can easily be integrated with existing systems. 

Moreover, both of these virtual currencies are extremely easy to use. Anyone who is familiar with computers and the internet can start using them right away. With that said, bitcoin is still the most popular cryptocurrency. This is because BTC is the oldest of the two.

While we expect Ethereum to gain more popularity in the future, we don't see it replacing bitcoin anytime soon. That's because it's still young and has a long way to go before it can compete with Bitcoin's brand name.
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