Bitcoin has become the largest cryptocurrency in the market in 2023. This was unsurprising after the latest bull market phase when Bitcoin completed the bull cycle, which ended with a price of over $60,000 in November 2023.
It was a notable bull run that also had a great impact on other altcoins in the market and also made the crypto market appealing for many new investors. However, this position of Bitcoin is impacted by several factors, and this article will provide an overview of the main factors which promoted Bitcoins climb to the top spot as the largest cryptocurrency in the market.
How Bitcoin Evolved As Largest Cryptocurrency In The Market In 2023?
In general, Bitcoin is decentralized crypto delivered through a peer-to-peer system. It enables individuals and associations to avoid heredity financial unions. Besides that, Bitcoin is also the first digital cryptocurrency that has a total supply of 21 million BTC coins. Due to that, a few investors relate to Bitcoin as the “digital gold” and new coins should be mined by professional Bitcoin miners. Below are some aspects that show how the first crypto coin has evolved as the current largest cryptocurrency.
Bitcoin was designed in 2009 by Satoshi Nakamoto, an unspecified person. During the 90s period, there was a group named cypherpunk, which operated on security models utilizing cryptography. This committee adopted the usage of progressive calculations to safeguard marketing, finance, and communication data. The growth of these cryptographic procedures is the result of Bitcoin innovation. It facilitates solitary authorization and suspicion of the state. In addition to that, Bitcoin remains as the first digital currency which stimulates peer-to-peer electronic cash systems.
Bitcoin Value Over The Years
In 2009, the value of Bitcoin was $0.00, which rose to $1.00 in February 2011 and $30 after a few months. The increase in Bitcoin value might be because of the Electronic Frontier Foundation (EFF) which approved Bitcoin donations. However, it only lasted a few months as there was no specific and detailed legal framework for virtual coins.
In 2013, Bitcoin’s value has seen a growth from $13 to $1,100. In the same year, Electronic Frontier Foundation again started approving Bitcoin donations, contributing to the advancement of BTC. In the last two months, i.e., November and December, there was a sudden spike of Bitcoin to $1,100. Also, the first Bitcoin ATM in the world was established in Vancouver in 2013, where investors can transform money into cryptocurrency.
From the last two months of 2013 to the year-end of 2016, the price of Bitcoin was stagnant. However, the crypto coin’s value surpassed $1,100 in January of 2017, and in December, it rose to almost $20,000. So, there has been a 20x surge alone in 2017. The rise of Bitcoin in 2017 happened 12 months after the halving. During this period, people became relatively attentive to cryptocurrency and showed interest in BTC trading.
In addition to that, big news channels, newspapers, and related outlets started talking and included more articles associating Bitcoin and additional cryptocurrencies. Another reason for the price surge is the entry of retail investors into Bitcoin trading. The price of Bitcoin has increased by over 100%, from $9,000 in May 2023 to over $20,000 in December 2023. In 2023 the price doubled to $40,000, and by April 2023, it increased to over $60,000 dollars. Today the value is again within the range of $60,000.
Bitcoin halving is a process where the block reward that the miners are entitled to get is cut in half every four years or after 210,000 blocks are included in the network. This is a very important process because, on the one hand, it is keeping the inflation rate under control, and on the other hand, it boosts the price of Bitcoin because it minimizes the number of available BTC on the market.
Moreover, the block reward for the miners was 50 BTC, but after three consecutive halving events, it was 6.25 BTC in 2023, and it will be 6.25 BTC until the next halving in 2024. After a halving, we have a noticeable pattern where the price of Bitcoin rises. This is why Bitcoin is on a bull run because the halving event cuts in half the number of BTC that are in circulation.
Online Trading Platforms
Bitcoin is one of the most popular assets because it is available on a huge number of crypto trading sites. This is the oldest cryptocurrency that was ever created, so you can find it on most trading platforms which put it in a better position than any other cryptocurrency. In addition to that, there are some exchange platforms that are created solely for Bitcoin.
There are automated trading sites like quantum-ai.io where you can invest in BTC, and the trading process will be completed from start to finish for the users automatically because the system is based on Artificial Intelligence technology. You can create an account when you make a deposit of $250. Some apps will let you have practice sessions in order to understand how Bitcoin trading works.
Hedge Against Inflation
Bitcoin can become an even more desirable cryptocurrency when it reaches a status of a safe-haven asset, or it is also perceived as a good hedge against inflation. This happened because Bitcoin has a very restricted supply of 21 million BTC tokens that can ever be generated through the mining process on the network.
Moreover, Bitcoin is a decentralized currency that isn’t impacted or under the control of any governmental fiscal, monetary policy and the economic crisis, political instability, social unrest, and anything else that can shake up the position of traditional currencies.
The main advantage of investing in Bitcoin is the anonymity of the users, which makes BTC transactions on the blockchain anonymous. This is another aspect of the design of the blockchain system by Satoshi Nakamoto that wanted to keep the cryptocurrency decentralized, and by doing so, it makes the identity of the users completely confidential.
But it’s also worth mentioning that the transaction fees are minimal compared to transactions with traditional currencies due to the peer-to-peer-based payment system. Keep in mind that the transaction fee varies from one exchange to another. For instance, there are some online crypto trading platforms that will allow you to make transactions at a much lower fee.
Bitcoin will always have a significant position in the crypto market because it is a rare virtual currency that has a very limited supply of tokens. Also, the blockchain network is known for being completely decentralized and extremely safe. And it’s beneficial that the processing fees are low and the identity of the users is protected. Lastly, there are different types of wallets where you can safely store large amounts of Bitcoins and have peace of mind.