Adoption and acceptance: The reasons why Bitcoin remains the crypto king

Since Bitcoin’s introduction in 2009, the crypto market has exploded. New cryptocurrencies have come and gone and the industry has developed both from a technical and regulatory standpoint.

 

And yet, despite all this, Bitcoin remains the king of crypto. Here we’ll offer insights as to why the first serious cryptocurrency still dominates 16 years later.

A brief history of Bitcoin

As we mentioned, the history of Bitcoin started 16 years ago in 2009. After the global financial crisis which saw chaos strike at the very heart of traditional financial institutions across the globe, Bitcoin was launched as an alternative cash system.

 

It was the first successful use of a digital asset that harnessed blockchain technology and created a peer-to-peer system of payments.

 

Its dominance over the past decade and a half can be partly owed to the fact that Bitcoin had such a big head start. By the time a competitor cryptocurrency was created, there were already eight million Bitcoins in circulation.

Market capitalization and adoption rates

Another reason Bitcoin is so dominant is to do with its market cap. Even though there have been thousands of other types of cryptocurrency, Bitcoin still comprises almost half of the entire crypto market cap which amounts to almost $1 trillion.

 

Outside of the crypto space, Bitcoin was initially dismissed by legacy finance institutions who felt this was just too radical a way to make and receive payments. However, as adoption among consumers grew, and confidence around its stability increased, these institutions began to accept Bitcoin as a force.

 

Since then they have made huge investments in the currency and this has allowed Bitcoin to differentiate itself from other types of crypto.

Technological advancements and network security

A huge selling point of Bitcoin is its security. Its lack of a central network makes it almost impossible to alter transaction records. Bitcoin’s stability and security come from the decentralized network which is supported by a global collection of nodes and miners.

 

This type of network security has given Bitcoin an edge against newer cryptocurrencies in the last 16 years.

 

In recent years Bitcoin has continued to advance technologically too. Specifically, innovations such as the Lightning network and the Taproot upgrade are signs it’s not resting on its laurels.

Regulatory developments in the USA and UAE

In both the USA and the UAE, there have been significant regulatory developments aimed at shaping Bitcoin’s status. The USA is seeking to create greater regulatory clarity and the UAE is working to establish a frame for these digital assets.

 

The SEC in the USA has relaunched its Crypto Task Force to look at removing accounting guidance and the launch of Bitcoin ETFs has seen activity increase. The UAE has established the Virtual Assets Regulatory Authority (VARA) to introduce comprehensive regulations including licenses for crypto exchanges.

Bitcoin’s role in portfolio diversification

Its stability and increased popularity has made Bitcoin a genuine portfolio diversifier. Funded trading platforms allow traders to include Bitcoin in portfolios without the need to provide extensive personal capital.

 

Its use as legal tender, most notably in El Salvador, has also seen the reputation of Bitcoin as an alternative to fiat and a smart addition to an asset portfolio increase.

Bitcoin reigns supreme

Whether it’s the acceptance by traditional financial institutions or the fact it is so far ahead of other cryptocurrencies, the points outlined in this article are just some of the many reasons why Bitcoin remains the true king of crypto.