Bitcoin is often referred to as the king of all cryptocurrencies. Why did it earn it and does it deserve a nickname like that? One is for sure, Bitcoin's dominance in the cryptocurrency industry should not be questioned.
A Game of Thrones. Can altcoins dethrone the king of cryptocurrencies?
There is absolutely no doubt that Bitcoin has achieved a significant advantage over other cryptocurrencies. A multitude of new projects appeared in the industry right after Bitcoin's appearance. The majority of them would like to take the king's place. Will altcoins succeed in overthrowing Bitcoin's ruling? It is rather doubtful. It could be said that everything is based on popularity as this cryptocurrency is on the market for the longest period of time and no other altcoin can change this. All new users (or at least the majority of them), therefore, while beginning their adventure with the world of virtual assets, eventually find out about Bitcoin. Later, however, they learn that there are more tokens out there, even if they do not arouse such curiosity.
There is a small possibility that some cryptocurrencies are actually able to outperform Bitcoin: whether in terms of applications, scalability, etc. They will never take away its fame, though. It is its fame that is the factor attracting new investors to the market. The investors are often people who have never dealt with any kinds of investments before. Moreover, they are, in general, not interested in the technology that stands behind the cryptocurrency. They choose Bitcoin because it is simply the most famous.
A flock of sheep following a shepherd
More and more people are following Bitcoin. They are often blinded by a simple desire for profit. No other cryptocurrency is as famous as Bitcoin. It is then no surprising that it is usually the first cryptocurrency that the user is able to come across.
There is one more significant thing that should be mentioned here. People often follow the crowd: they go to a restaurant where more people hang out, because they think that better food is served there, they make a community when a sensation breaks out, because they think it is worth attention... But getting to the point, these situations are similar to as it is with investments in Bitcoin. People just follow the profit-seeking crowd.
Money that no one controls centrally
Bitcoin gains in the eyes of a great number of its supporters, mainly because of the fact that it is decentralized. This cryptocurrency is not controlled by any central unit or entity. It is completely independent of governments and financial institutions which gives it a huge advantage. Even Satoshi Nakamoto, the creator of Bitcoin, did not reveal his identity. As a consequence of this, this cryptocurrency is becoming quite attractive for all the people valuing independence and freedom.
Let's use an analogy in order to better illustrate this. Imagine that you keep all your savings in a bank that overnight, for unknown reasons, locks your account and freezes funds. You are penniless and your future depends on the good will of the central body.
With Bitcoin, everything is done on completely different principles. Your cryptocurrency wallet becomes your BTC account. It consists of two keys: public and private. The latter serves as a PIN to your wallet. No one else can access your funds, block or take them (if they do not know the private key). The only person who has full power and responsibility for your money is you. This is beautiful in Bitcoin.
How is it with altcoins? Do they also have the same feature? All cryptocurrencies are different. It is essential to mention here some quite important features that blockchain can have. These are: security, decentralization and scalability. Unfortunately, you can't have them all at once. For example, the second most popular cryptocurrency after Bitcoin, Ether, focuses on decentralization and security at the expense of scalability (which, of course, is under development).
The downside of altcoins may be the relation they have with their creators. The market would certainly react to the unpleasant news if it did occur and vice versa. For instance, let's look at what happened to Bitcoin SV, when Craig Wright tried to convince everyone that he had received the keys to the fortune accumulated in Bitcoin from a courier. The course of this cryptocurrency is now strongly dependent on the mood that prevailes among the BSV community.
There is no person in Bitcoin's community who, with their behaviour, could contribute equally to declines or increases. It is another feature that altcoins do not have.
Is Bitcoin really better than other cryptocurrencies?
It all depends on the point of view that one has. Although this cryptocurrency is becoming more valuable in several fields, some altcoins could have much more to offer in terms of technology. None of them, however, will achieve such great fame as Bitcoin and this is a factor affecting the entire future of this cryptocurrency.