As of Dec 2019, there were more than 3000 formally recognized cryptocurrencies in the world! That means that in less than a decade, over three thousand companies, individuals and crypt ecosystems have been founded.
All of them have been competing with the first one- Bitcoin. When Satoshi Nakamoto created Bitcoin way back in October 2008, no one had expected the cryptocurrency rage to linger for a decade. However, Bitcoin continues to not only corner the market, but also dominate it comfortably with over 70% market share in the entire crypto world.
In this article, we will look at why Bitcoin is superior to every other cryptocurrency out there in the market. In addition, we will also shed some light on Bitcoin's greatest feature- its decentralization.
Why Bitcoin continues to dominate the Crypto ecosystem in 2020?
According to experts, the viability and value of a financial asset is determined by the amount of time it has seen. Now you might say that ten years is not a long enough time to proclaim Bitcoin a success. However, if you look at Bitcoin's competition, you will think that Bitcoin quite an old phenomenon.
Ever since 2011, other companies and tech gurus have experimented with different cryptocurrencies of their own. IxCoin, Tenebrix and Solidcoin were some of the earliest competitors to Bitcoin. All of them came up in 2011. They hoped of taking investors away from Bitcoin. Within a few years, all of them winded up their operations.
Two others, Litecoin and Namecoin also came up around the same time. However, Litecoin continues to enjoy some form of popularity in the asset and investor market.
Why the absence of Satoshi Nakamoto was a boon to Bitcoin's success?
One of the major reasons why people prefer Bitcoin as compared to other cryptocurrencies is because there is no concept of ‘Premine'. Premine essentially means that a previously arranged or specific number of coins will be accrued to the Founder first and then start the networking process.
Many investors who want to associate with the concept of a truly decentralized currency do not want to go in for premine. They do not see any value there. By disappearing Nakamoto ensured two things-
Avoiding extra taxes on cryptocurrencies.
You will notice that practically all major alt coins take some kind of dev fee, maintenance fee, storage tax, etc. This literally translates into the same thing as traditional fiat currency. Why would you want to create a digital/crypto and then burden it with the same moulding of taking transaction fee?
Bitcoin did not do that. This made it a truly one-of-a-kind decentralized currency, which worked between sender and receiver. By not having a central figurehead, every concerned party in Bitcoin will have to create and manage the consensus within the system.
Is Bitcoin's Decentralization going to fuel its success in the future?
The brief answer to this is ‘YES"! In the last few years, especially in 2019, Bitcoin has started showing signs of maturity. The investors in the Bitcoin ecosystem are also showing signs of maturity. In other words, the volatility associated with the hugely profitable bitcoin code is seeing some form of stable investments.
According to many, this signified Bitcoin's coming of age moment. Experts state that 2020 is going to be a great year for Bitcoin. This is because the famous ‘Bitcoin Halving' is expected to happen in May 2020. The year 2029 also saw more and more investors taking their assets out of altcoins and investing them in Bitcoins.
There is a belief that if national governments are going to engage with cryptocurrencies in the future, they are only going to have a dialogue with Bitcoins, and no other cryptocurrencies.