Today, almost the entire world knows about Bitcoin (BTC) and its market presence. However, the majority of the people that have come to know about it, are because it has been trending in the news ever since 2020. As the majority of the people from around the world have come to know about it in the year 2020, they think it was launched in the same year.
Surprisingly, Bitcoin had been around 11 years prior to the real break it earned in the year 2020. It was back in 2009 when Bitcoin was introduced to the entire world as an alternative to traditional financing as a decentralized entity.
From the year 2009, so much has taken place around Bitcoin that has brought it to the point where it stands today. Even as people are looking at the price of Bitcoin and wondering how it has made it to such heights, there’s so much taking place in the background.
There are several developments, ups, and downs that have been taking place in the Bitcoin sector that has been redefining cryptocurrency every single year. Therefore, it is important to highlight the special and most prominent aspects of Bitcoin.
Bitcoin’s Currency Crypto-Market Dominance
From 2009 until now, it is Bitcoin that has been on the leading end for the entire cryptocurrency industry. Over time, several cryptocurrencies such as LTC, XRP, ETH, and many more have debuted to compete with BTC, but none has managed to achieve it to this day.
This is because being the first-ever cryptocurrency and blockchain within the crypto-verse, Bitcoin is the foundation of the crypto-verse. Therefore, the trust level of the investors and even the mainstream institutions is much higher for Bitcoin than any other cryptocurrency.
At present, Bitcoin reigns over the entire crypto-sector as the largest cryptocurrency in the world. It currently has a market valuation that is close to $957 billion. Surprisingly, Bitcoin has seen better days, having achieved a market valuation worth $1.4 trillion in April of 2021. At the time of publishing, Bitcoin price is $47,859.92 but the all-time high it has achieved is worth over $68k per BTC.
The cryptocurrency second to Bitcoin is Ether (ETH) with a market valuation worth $481 billion. This goes to show that BTC’s valuation is almost the double valuation observed by ETH. As of now, Bitcoin’s dominance over the crypto-verse is over 40% and at one point, it was close to 60%.
Major Issues Solved by Bitcoin
In late 2020, as the crypto-verse grew enormous, Bitcoin started recording extremely high trading volumes and transaction rates. As a result, the Bitcoin blockchain became very slow, it faced latency issues, and most critical of all, it faced very high transaction fee costs.
However, third-party developers came up with the idea of launching a hard fork for BTC in the form of Lightning Network. The development team behind the Lightning Network launched it in the form of a second layer on the blockchain for Bitcoin. It was in mid-2021 when the Lightning Network was integrated into the Bitcoin network, solving all the problems that the Bitcoin users faced from latency to transaction fees.
Mainstream Adoption of Bitcoin
Although the mainstream institutions are highly likely to invest in Bitcoin over altcoins, yet it is the regulatory and volatility uncertainty restricting them from doing so. However, the problem has been solved by many Bitcoin enthusiasts by introducing BTC ETFs. Through the ETFs, the crypto-firms and Bitcoin broker companies have been launching themselves as publicly-listed entities offering cryptocurrencies and their valuations in the form of stocks.
The ETFs go through the same reviewing and approval process that a company goes through prior to its public launch. This way, mainstream investors no longer have to worry about directly investing in cryptocurrencies. Instead, they can do it through the ETFs under a regulated and almost non-volatile environment.
With the passage of time, Bitcoin is gaining more prominence within and outside of the crypto-verse. This way, Bitcoin will soon become one of the most attractive and highly profitable investment options for any kind of investor.