Why Bitcoin still remains king of cryptocurrencies?

By
Tokeneo
-
3 min reading

While there are many different blockchain and cryptocurrency solutions on the market today, Bitcoin still remains king of them, just like "the lion is king of the jungle"

bitcoin is king

Bitcoin - Royal cryptocurrency

During the current crisis, small groups of people are using Bitcoin to raise funds for emergency medical equipment, secure their savings and do international business. The oldest cryptocurrency still dominates and represents 64% of the cryptographic market.

Although the use of this digital money seems extremely small compared to the volume of trade, there are people who buy bitcoin because it is the only available solution that works for their particular situation.

Bitcoin is king because it is really useful for people who are looking for more than just speculation and experiment. The Bitcoin project is not run by a group of young researchers who publish their homework at school for other people's money, as it happens in other cryptographic projects. Bitcoin is not a lifestyle brand, even though it has its maniacs. Nowadays, Bitcoin is just money. Bitcoin is not just a promise but a financial tool whose value does not depend on one company. Therefore, while new projects are created and fall, bitcoin remains in a stable position on the market.

The Lebanese entrepreneur Michel Haber, the founder of the remote website cNepho Global, pays most of his contractors with bitcoin.

"They would rather get their payments in bitcoin because they can cash out locally, wherever they are"

, Haber said. 

"I buy bitcoin peer-to-peer, and pay my developers the same way."

Bitcoin Core contributor Sjors Provoost said perhaps one of the most bullish observations about Bitcoin is that it is developing steadily despite the coronavirus crisis. At a time when central banks are using their financial reserves to fight COVID-19, the constant shortage of bitcoin is becoming increasingly popular and attractive.

"Lightning has been getting easier to use thanks to apps like Phoenix." 

, Provoost said, according to Lighting Network

"We know that with Lightning, we can handle far more usage than the last peak."

Progress on privacy

Tieron's senior software engineer, Buck Perley, who created the "open-source Lightning" tool that is used for timing, agreed that Bitcoin's "consistency and resiliency to external shocks" is an essential feature of this great technology. The fact that Bitcoin is reliable is precisely the advantage that makes it arouses interest in uncertain times.

"As a project, the fact that Bitcoin doesn't rely on funding models ... that are tightly correlated to the broader economy is also proving to be an aspect of its resiliency," 

,Perley said.

Blockstream engineer Lisa Neigut said that the new privacy tools may eventually also have a Lightning equivalent, offering privacy features for a wider range of transaction types. Her company is working with the French startup ACINQ to launch privacy gateways, called "blinded paths", in a public Bitcoin book.

"Blinded paths are a huge privacy win for services like Jack Maller's Zap wallet or the Phoenix mobile app that mediate invoice payment on behalf of users," she said. The coronavirus has also opened up conversations about doing more intense tracking of people to see the virus move in real time. As commerce moves online, I think more than ever we're going to need a permissionless option that Lightning (and bitcoin) help provide."  

Provoost is optimistic about the balance of supply and demand. While some blockchain enthusiasts may find Bitcoin boring due to the slow development process and its narrow focus, followers consider it to be the most valuable feature of the "king cryptocurrency".

"With persistently low fees, my impression is that bitcoin is on standby for a lot more people to use it," Provoost said. "Bitcoin, or the idea of it, is an insurance against tyranny. It's okay if we don't need it at the moment. As with insurance, it can be good news if they're not sending you lots of money. And the [bitcoin] price hasn't dropped through the floor, so apparently owners are still happy."