In recent years, blockchain technology and cryptocurrencies have had a great diffusion globally, a good part of this merit is held by Bitcoin (which is currently the most popular and widely accepted cryptocurrency at a global level), in this article, we will explain why Bitcoin has had this great popularity in addition to analyzing the advantages of Bitcoin compared to other cryptocurrencies:
- 1 It is the most relevant of the cryptocurrencies that exist
- 2 It is more stable than the other cryptocurrencies
- 3 Has a limited number of units
- 4 Highly competitive rates
- 5 Reduces the risks of loss and attacks
- 6 Information always verifiable
- 7 Global usage
- 8 Easy to operate
- 9 Anonymous transactions
- 10 Security and trust
It is the most relevant of the cryptocurrencies that exist
The main advantage of Bitcoin is being the most relevant “pioneer” cryptocurrency in the market, compared to other cryptocurrencies (such as Litecoin, Ripple, among others) that are more recent in the market. It is important to remember that thanks to Bitcoin, Blockchain technology became known globally, in addition to having the highest demand in the market (which is demonstrated in its current price).
It is more stable than the other cryptocurrencies
Compared to other cryptocurrencies, Bitcoin has greater stability (despite constant fluctuations), the problem is that many people focus only on its value and not on the variation in its price ranges over the years or months. This “stability” is due to its age, price range over the years and its support in blockchain technology, since being the first cryptocurrency and following all the parameters of blockchain technology, it generates more trust in users and this, in turn, gives greater stability to its final price (as we saw in our previous article in which we talked about how the value of Bitcoin is determined).
Has a limited number of units
Bitcoin has a limitation in terms of the number of units, as the units that will circulate are limited to only 21 million, it is expected that by the year 2140 it will have been created (or mined) and no more Bitcoins will be generated, this allows that maintains its value compared to other cryptocurrencies (where their creation processes are not 100% transparent or they do not have a limited number of units).
Highly competitive rates
The rates to carry out transactions with Bitcoin are, so far, the lowest in the market, this could be due to the fact that it has a higher volume of transactions with respect to tokens that are just coming out and are beginning to be known.
Reduces the risks of loss and attacks
The risks for merchants and users, in general, are less as Bitcoin developers have had enough time to “shield” the cryptocurrency against attacks by hackers or unscrupulous people who want to access user funds or intercept transactions.
Information always verifiable
The information provided in the Bitcoin will always be available on the Blockchain in order to be verified “when desired” by any user. No one can tamper with the Bitcoin protocol for being cryptographically secure. Its trust lies in its neutrality, transparency and reliability, which makes this currency the ideal form of payment for carrying out small and large financial transactions.
Bitcoin does not belong to any government, state or bank, so it can be used around the world, regardless of political or geographical barriers, as long as you have an Internet connection, financial transactions can be carried out without the need for intermediaries.
Easy to operate
Bitcoin is a cryptocurrency that can be divisible, for now, it is divided into 8 decimal places, although it has no limits, so in the future, it could be divided into more decimal places. The minimum Bitcoin unit known so far is the Satoshis, named after its creator: Satoshi Nakamoto.
Something that is considered important is their anonymity, no one knows or will know the identity of the user, since there is no obligation to identify themselves, something very useful especially in countries with militaristic or authoritarian regimes.
Security and trust
The points mentioned above make Bitcoin the cryptocurrency that generates more security and confidence within the entire spectrum of cryptocurrencies, whether to carry out any type of transaction or protect its assets, another factor that reinforces the confidence of Bitcoin is its approach «towards people ”and its decentralized management, unlike other cryptocurrencies such as Ripple, which is more focused on the financial or banking sector or other cryptocurrencies in which they are under the control of a company or entity.
What do you think about this topic? Do you know of any other advantages of Bitcoin compared to other cryptocurrencies?
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Image by André Francois Mckenzie via unsplash.com under creative commons license.