Is Bitcoin the Only True Cryptocurrency?

It is often discussed with passion: Is Bitcoin the only true cryptocurrency? As so often in life, there is no single answer to this almost philosophical question. But nevertheless, there are clues that at least suggest that one can tend to answer this question with “yes”.

Table of contents +

Because several features speak for a certain superiority of Bitcoin (BTC) over other cryptocurrencies. In contrast to the thousands of different cryptocurrencies that have emerged since the first crypto boom in 2017, Bitcoin remains the first choice for any investor who dares to step into the crypto space.

But why is Bitcoin superior to all other cryptocurrencies? To get the answer to this question, it is first necessary to examine what makes Bitcoin a solid store of value at all. These would be some of the main features of the leading cryptocurrency that set it apart from the competition:

1. Absolute Scarcity of Bitcoin

Once the last coin is mined, there will only be 21 million Bitcoin in circulation. By 2035, 99% of all Bitcoins that will ever exist will have been mined. Due to the so-called halving event, which takes place every 4 years and represents the halving of the reward for mining new BTC blocks, the last coin will not be mined until 2140.

This fixed number of coins to be issued is programmed into the Bitcoin code, which means that the supply always remains the same, regardless of how strong the demand rises. Over time, the supply expansion slowly decreases until it comes to a complete standstill. These economic principles of Bitcoin make a crucial difference compared to traditional fiat money (but also many other cryptocurrencies).

Connected: 85% of Bitcoin has already been mined

According to coinmarketcap.com, there are currently about 9,000 cryptocurrencies in circulation – and there will probably be many more, as the managers of other cryptocurrencies can simply create more iterations of coins out of thin air, regardless of the current monetary policy.

2. Fully Decentralized

Bitcoin is a truly decentralized cryptocurrency, as the protocol is not run or operated by a single entity. Therefore, the entire ecosystem is completely resistant to any counterparty risk. Politically and socially, this is extremely important for the overall value proposition of the network, as governments and other powerful entities cannot target, force or manipulate any individual or groups to regulate or change key components of the base protocol.

For comparison: Ethereum, for example, is under the influence and leadership of co-founder Vitalik Buterin and the Ethereum Foundation. As Ethereum 2.0 and other cryptocurrencies continue to adapt and grow, it will be interesting to see how the Ethereum inventor and the protocol itself will react to political pressure and government regulation.

Connected: Ethereum “Berlin Update” successfully launched

3. Mass Adoption and Acceptance

The network effects of Bitcoin cannot be ignored. The leading cryptocurrency has established itself as a legitimate store of value over the years and has exceeded a market capitalization of over 1 trillion US dollars. No other cryptocurrency has nearly as broad mass adoption and large market capitalization as Bitcoin. And as the number of users continues to grow, so does the value of the entire BTC network exponentially.

Adoption: Pay insurance with Bitcoin? Axa Switzerland makes it possible

For a new cryptocurrency to gain mass adoption or a mass network effect like Bitcoin, it would have to be an order of magnitude better and surpass BTC.

4. BTC is and Remains the Leading Cryptocurrency

Especially beginners are quickly overwhelmed by the thousands of different cryptocurrencies in the crypto ecosystem. New investors will probably wonder whether they should put everything on BTC or also include altcoins in their portfolio. There are different opinions on other cryptocurrencies, as some experts believe that they could have various possible future use cases. But given the economic and technical principles of BTC, which have the characteristics of an asset, no other cryptocurrency can compete with No. 1.

Conclusion: BTC is and remains the leading cryptocurrency worldwide, as adoption and acceptance are constantly increasing. More and more asset management companies, large financial institutions and investment banks are now offering their wealthy clients the opportunity to invest in Bitcoin. A recent example of this is the investment bank Morgan Stanley, which itself sees no competition for BTC in the digital currencies of central banks (CBDC).

Of course, other cryptocurrencies also bring individual characteristics, but at the moment, beginners and advanced users are not doing much wrong if they rely on Bitcoin for their entry into the crypto world.

An entry planned: In our guide, we explain how to buy Bitcoin