Why is it that Bitcoins' dominance is greater than 50% of the overall cyrptocurrency market?
Bitcoin has more than 50% market dominance in cryptocurrency, why is it so?
Why is it that Bitcoins' dominance is greater than 50% of the overall cyrptocurrency market?
Bitcoin has more than 50% market dominance in cryptocurrency, why is it so?
Bitcoin was the first ever crypto and as they say in business first to market is a huge advantage. It has been a consistent performer year over year (except this year of course) and is what most people believe crypto is all about
It is also the most widely accepted coin and has had major businesses such as Dell, Microsoft, Steam, etc all accept it at one point or another. That is a huge reason right there it dominates the market. People believe it has value for more than just drugs if places like Microsoft will accept it.
The value is another reason. People perceive value based on price of something, with bitcoin being so high vs others it MUST be the right coin to get into.
Bitcoin is the first coin that started crypto currencies. It has always been the coin you purchased to come into crypto and then traded for something else on the exchanges. You couldn't invest money and then trade for the coins. You had to purchase Bitcoin for any transactions to happen. The same is when you sell any of your alts you have to sell them to Bitcoin or Etherium to move out of the exchange.
Bitcoin is down from $22 500 in January to around $6500 currently and is expected to turn and reverse the downward trend. The smart move is to have Bitcoin right now as that is always the first coin to climb. Others follow and copy what it does.
If you are holding bitcoin and it starts an upward movement you can gain an immediate 15 to 20 percent by holding this coin. There is expected to be a lot of interest this time from larger corporations and finance institutions who are waiting to invest. Once the coin starts to climb it is hard to catch it up so it will be interesting to watch.
Simply because it has demand on it. Bitcoin is the first cryptocurrency, lots of cryptos are being traded through Bitcoin, thus there is a high demand on it and for a good amount of time it has an over 50% dominance. It's also because during bear markets Bitcoin usually holds better its price than altcoins. However, when altcoins start to rally again big amounts of money are "thrown" into such cryptos and Bitcoin loses its dominance. I think that this might be the last year in which Bitcoin will have that much of a dominance. In the next three years I think other crypto projects with much more use cases than Bitcoin will take away its huge dominance.