Source: marca.com/

Why Bitcoin Influences Other Cryptos In The Market

No matter how many cryptocurrencies there are in the world, one thing is for sure – Bitcoin is the one that runs the whole game and defines how this market will develop. This currency has the status of a pioneer in this area and therefore is irreplaceable and many things depend on it.

From what we can see ourselves when the value of Bitcoin grows, then in fact the whole crypto market is stabilizing and it is a great time to trade with the savings we have in cryptocurrencies. But when the period is not favorable for them, it suddenly becomes even worse for the other coins.

Many traders and investors are focused on Bitcoin, but how did it secure such a strong market position?

The answer is very simple – it all started there.

As a result, many trading platforms are designed to support Bitcoin and then any of the other known currencies. On this topic, you can read more and find out why this crypto is so influential in the whole market.

If you are aware of what is happening in the crypto market, then you are aware of what exactly we are talking about. But if we need to make a list of reasons why Bitcoin is the most influential and popular cryptocurrency, then we will do it for you below:

1. BTC was the first cryptocurrency in the world

Source: digitnews.in

We all know that those who first appears in an area actually remain pioneers as long as they exist. Even if Bitcoin disappears overnight, it will not be forgotten for generations, due to the huge impact it has on the existing currency market.

When it first appeared in 2009, it was only available through mining and it took two to three years for people to realize the potential of such currencies. But when tech celebrities became interested and invested, it became more than clear how things would turn out.

Today, almost 13 years later, the crypto world could not be imagined without BTC. There are people who want to have as much Bitcoin as possible, and there are those who hate it precisely because of the effect it has. But what remains forever is the fact that today’s crypto world exists thanks to BTC and the mysterious Satoshi. whose identity is still unknown.

2. Other cryptocurrencies are inspired by BTC

Source: impily.com

Their beginnings are similar to those of Bitcoin, following its concept. Over time, many of the famous cryptocurrencies have taken a completely different concept and direction, and some are even associated with fiat money. An example of a so-called copy is

which has taken the basic concept and then built its own mining and trading network.

When you are a champion, you are an inspiration to everyone around you. Bitcoin also boasts that.

Over time, forks of BTC itself have emerged, which are derived from the basic concept, but due to different circumstances in the markets continue as a different currency. An example of this is Bitcoin Cash.

This is another proof that the one who appeared first, defines the whole market built around it.

3. BTC is a source of knowledge and skills

If you have mastered the basics of BTC, it is very likely that you already know how to work and trade with any other cryptocurrency. Fortunately, there is plenty of literature and blogs and people can really learn a lot from them. Even if one day is taught in school, from a textbook, BTC will surely be the first lesson, before moving on to the stages of development of the crypto market.

4. Its value is very attractive

Source: masterthecrypto.com

If we first learn about BTC, it is volatility and the risk involved in the whole concept. But people go crazy for it because for one coin, they have a value equivalent to thousands of dollars. The real profiteers are those who bought when BTC was worth only a few dollars and managed to save it to this day. It is an investment that is worthwhile and attractive.

On the other hand, nowadays it is not so attractive to buy, because no one wants to spend $ 10,000 or $ 30,000 on something that is so uncertain.

However, the desire of every crypto enthusiast to own at least some Bitcoin exists and is certainly great.

5. Blockchain is a concept that can be used outside of cryptocurrencies

The network in which the mining takes place is called a blockchain. During the solution, blocks are generated, which are connected to each other like a chain. Each block contains a specific reward in the form of a cryptocurrency. When the transaction is confirmed, a node containing the data is created. The more blocks generated, the more the transaction is sealed in that chain, and the stored data is difficult to access.

6. For many investors, BTC is a safe asset

Source: time.com

The number of investors who have savings in Bitcoin is huge. The value of this currency, stored in various digital wallets, is also huge. But at the same time, the circulation through the network is at a very high level. BTC holds a market capitalization greater than any other cryptocurrency. That’s really why investors always have Bitcoin reserves, no matter what else they trade.

Conclusion

Risk, volatility, volatility, and all the other “negative” epithets imposed on BTC do not worry enthusiasts at all. It seems that the riskier it sounds, the more attractive it is for them and for their desire to have them in as large quantities as possible.

Bitcoin has opened up a whole new world of finance and money. Facilitates international transactions and makes a number of services as accessible as possible. That is why it would be very difficult for another cryptocurrency to get that influential status because from BTC it all started and fortunately, it still exists as a market.

Even if you admire yourself and you are aware that you can not afford it, do not hate yourself for it – we all admire those who create great things.

About Alexandra Maxwell