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And yet, if we scour the market and look at the figures, it’s obvious that Bitcoin has always had the upper hand and continues to be the center of attention. The majority of traders and investors prefer to learn how to buy Bitcoin over other cryptocurrencies, despite the numerous other options that populate the market. It’s as if there’s only one coin that truly matters and the rest are there just to fill in the void and give it context.
If you ask average people who have no particular interest in the cryptocurrency landscape to name one crypto other than Bitcoin, they probably wouldn’t know what to reply. This reflects the collective perception that Bitcoin and crypto are one and the same thing. But does this mean that one should look no further than Bitcoin when considering digital assets or is this just a restrictive narrative that prevents one from seeing the woods for the trees?
It’s all about Bitcoin
Crypto assets are a dime a dozen, yet Bitcoin shines brighter than the rest, so much so that it often makes people ignore the existence of other cryptocurrencies. The figures say it louder than any explanation one can provide in this respect. Bitcoin is the largest crypto available, with a market cap of over $1 trillion at the time of writing, with its dominance standing at over 50%. This means Bitcoin commands more than half of the market and its hegemony continues to increase.
If we place Bitcoin in a larger context and compare it to other assets outside the crypto realm, its scale is even more impressive. After its most recent bull run, Bitcoin’s market cap exceeded that of silver, pushing the leading crypto to the eighth position in the global asset ranking. the crypto leader had already topped Meta’s market cap and if its ascent continues, the next company that will cruise by is going to be Alphabet, the holding company of Google.
Going back to the crypto space, the entire market seems to revolve around Bitcoin. This comes as no surprise since Bitcoin was the first decentralized currency to be invented, laying the foundation for the development of the crypto industry of today. Even now, 15 years since its launch, Bitcoin’s first-mover advantage keeps it in the lead, underscoring its unwavering influence.
The trailblazing crypto sets the tone for crypto, serving as a bellwether in the industry. Judging by its price history, Bitcoin’s movements appear to dictate the price trends of all other assets and thus control what happens in the market. Wherever the leading asset goes, the rest of the coins follow. When Bitcoin goes on a bull run, the altcoins increase in price as well and when Bitcoin’s value plummets, the altcoins’ prices take a hit as well.
Even the way digital currencies are categorized makes it obvious that Bitcoin is the center of gravity in the crypto market. Altcoins stands for alternative coins, encompassing all cryptocurrencies that are not Bitcoin. This classification uses Bitcoin as a reference point, inducing the idea that the crypto market is made of Bitcoin and the rest.
Crypto beyond Bitcoin
We also need to take a look at the other side to maintain a balanced view of the market. The second-largest crypto in the market, Ethereum, is nowhere near Bitcoin in terms of value, popularity and market capitalization. With an all-time high of $ 4,891 and a market cap of 430.76B, Ether has established itself as the leading altcoin and a hub of innovation in the cryptoscape. However, neither its unique features nor its massive potential has helped the groundbreaking platform to reach the heights that Bitcoin has reached, proving it’s probably true that nothing can grow in the shadow of a big tree.
On the other hand, we can’t deny that many traders and investors also take a keen interest in altcoins. It might be a Bitcoin world, as far as crypto goes, but the famous asset is not alone in its quest to reach mainstream acceptance.
When an innovation takes off and becomes successful, it’s normal for others to try to mimic its success. That’s how altcoins came to be. Every crypto project launched after Bitcoin was modeled in one way or another after the original asset. Some are superior to Bitcoin in certain aspects and have more advanced features and use cases that Bitcoin lacks. So, in the same way students often surpass their master, one of the altcoins might be able to outdo Bitcoin one day.
Besides, if anything were to happen to Bitcoin, it would be good for crypto enthusiasts to keep an eye on the rest of the market and have a plan B. And even if Bitcoin continues to thrive, some altcoins might still prove useful, providing utility in different areas than the main coin.
Final thoughts
Bitcoin might not be the only digital asset worthy of attention but it is certainly the most powerful of them all and the stranglehold it has on the crypto market is as evident and strong as ever. With the passage of time and the ongoing development of the crypto industry, its influence might weaken. Digital currencies are still young and there’s no telling how they will change as they mature.
However, for the time being, the crypto king remains in a category of its own, overshadowing every other asset that has emerged in its wake. Considering its current standing and influence, it’s going to be extremely difficult if not impossible for a different crypto to come close to or surpass its performance.