You’ve probably attempted to get in on the Bitcoin market at least once in your life, or at least thought of doing so. Unfortunately, you probably didn’t become a millionaire or you wouldn’t be reading this article on a finance advisers group website. Bitcoin has kickstarted the cryptocurrency world a couple of years back in the past (almost 10 years ago) and it was the leader of the market for a large portion of that time.
For a time, no other cryptocurrency was available (or there were but were experimental with no real value to them) and people were turning only towards Bitcoin. It was the defining factor of what it meant to own a cryptocurrency. Of course, it wasn’t worth a lot when it started (1 BTC was something meager and not really worth the investment). Most experts and pundits alike didn’t think that Bitcoin would ever become a globally accepted and sought after cryptocurrency, but, it was.
For a time. As time went by and people saw how powerful Bitcoin is, competitor cryptocurrencies slowly started appearing. At the start of this expansion, Bitcoin still ruled supreme, but not for long.
Soon, cryptocurrencies such as Ethereum would enter the market and, even though they were worth less than Bitcoin, a precedent was set. Cryptocurrency creators were constantly on the lookout for ways that would topple Bitcoin from the #1 spot (technology improvements, speed, etc.).
What exactly happened?
The Fall of Bitcoin
Bitcoin is still the go-2 cryptocurrency people think about when mentioning the topic, yet its value plummeted some time ago. If you take a look, it’s still worth almost $8k for a single Bitcoin, but this is far from its previous position of power. This can be attributed to many reasons:
- Bitcoin as a whole didn’t change a lot over the years. The prime concept still remains and we could blame the unwillingness for change for the decline of its power.
- Competitors are now more powerful than ever before and Ethereum is the direct competitor to Bitcoin. The value is a lot less than what Bitcoin offers, but the ease-of-access and flexibility on the market give Ethereum a fairly large advantage. More and more people are considering this, instead of Bitcoin.
- Old technology is the bane of Bitcoin’s existence. You might have heard about Blockchain technology (which Ethereum uses in a slightly modified state). This technology gives its users the ability to complete payments and transfer money with lightning speed. Bitcoin, on the other hand, is relatively slow and not secure (but it still uses Blockchain; albeit an older variant). Just remember how much security you need to keep your Bitcoin wallet safe – not good.
Bitcoin can go two ways – up or down. Currently, it’s on a downward path but it might change in the future – if Bitcoin changes as well. Right now, however, it has a difficult obstacle that needs to be crossed if it is to return to its former glory.