Shay Benhamou Discusses Why Bitcoin Will Remain The Strongest Cryptocurrency
Satoshi Nakamoto introduced the world’s first-ever decentralized cryptocurrency in 2009 in the form of Bitcoin. The aim when bitcoin was introduced to provide an alternative monetary solution. Its current aim remains the same and it has achieved much of it. Bitcoin is considered a payment option by many companies. Bitcoin was able to hit a market cap of $1 trillion in just a span of 12 years when other assets such as Microsoft tool more than 20 years to reach the point. Bitcoin holds a strong position in the financial world and Shay Benhamou believes that it will remain the strongest cryptocurrency till the end of time.
Time and time again people have made claims about Bitcoin’s end when a particular cryptocurrency tops the market. However, Bitcoin has always managed to secure its top position.
Reasons Why Bitcoin Is The Strongest Cryptocurrency
Bitcoin has a very limited supply which is one of the main reasons why it is such a high in-demand asset. It is nature’s rule that when something isn’t readily available, it is sold at a higher price. At the moment, approximately 18.7 million Bitcoinsare owned by investors where the cryptocurrency has a limit of 21 billion.
Bitcoin is an extremely volatile asset. This means that the market value of this asset can increase or drop without any future notice. The limited supply of this digital currency is what makes the volatility of it so drastic. Moreover, the volatility of the cryptocurrency depends on the buy-sell cycle since traders treat it as a regular asset.
Shay Benhamou explains how different factors affect Bitcoin’s volatility. For instance, companies can suddenly decide to accept payments in the form of Bitcoin which will show a surge in Bitcoin rates as more investors will buy it. However, if the company suddenly rejects Bitcoin payments, as was the recent case with Tesla, the market value of the asset will drop drastically.
Bitcoin has the securest network which means that no other cryptocurrency offers the level of security that this digital asset does. Bitcoin has more than eighteen million miners all over the world that help in managing the decentralized network of Bitcoin which is the blockchain. The high number of miners working on the blockchain ensures a high level of decentralization of the asset. It also leads to ensuring that the payment systems of Bitcoin have strong and unbreakable security protocols.
A Gold Standard For Other Cryptocurrencies
Traders view Bitcoin as the standard of cryptocurrency that they should achieve. Of course, this is not something that is easily accomplished as the present shows. Traders use it to compare the market value of other assets like how the USD is used in the global stock markets. Due to regulatory restrictions, traders in many countries cannot perform crypto/fiat trading. So, traders invest in Bitcoin and then purchase Altcoins to use for trading later on.
A common trend is that when something gains popularity, people start copying some aspects of it and sell it at a cheaper rate. This is exactly what happened after Bitcoin surged in value and popularity. As the cryptocurrency started getting higher positions in the financial markets, many altcoins were introduced which were developed from a copy of the Bitcoin code. You will be surprised to hear that the popular asset Litecoin that many people frequently invest in is a clone of Bitcoin. In fact, it is the first altcoin that became so successful.
Many reasons back Shay Benhamo’s stance that Bitcoin will remain the strongest cryptocurrency. Digital currency has always been a role model for other cryptocurrencies. While many have tried to copy the software and technical codes of this coin, they have not been able to reach the position that Bitcoin has. The pioneering status of digital currency allows it to have a lot of influence over the financial industry.