3 Reasons Why Bitcoin Is The Top Cryptocurrency

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While Bitcoin faces stiff competition, it outperforms many altcoins to remain as the first and top crypto


Source: pixabay

Following news on Forbes, there are 3 reasons why BTC remains strong in the crypto market.

1. Institutional support

Being the largest and most successful cryptocurrency, Bitcoin is the entry point for many financial institutions. As a diversified investment strategy, many financial institutions pick Bitcoin at its 'lowest' price as an entry point. 1 percent of financial portfolios invested into cryptocurrency translates into billions of dollars that could cause a major shift in Bitcoin's market capitalization.

Ben Ritchie, chief operations officer of Australian investment manager Digital Capital Management, cited a recent Fidelity survey, which found that nearly half of all respondents thought that these digital assets were worth including in a portfolio:

"Out of that pro-crypto group, which included pensions, family offices, crypto funds, and endowments, 72% noted that they would be most comfortable with holding digital asset funds, like the array of proposed Bitcoin EFT's and Listed Unit Trust vehicles."
Source: Forbes

2. Large market movements


Source: coinmarketcap

While the competition of altcoins may have brought Bitcoin's dominance in the market down to an all time low in Jan 2018 (~33%), its dominance has remained steady and hovers at 50-53%. Bitcoin's performance this year has seen a strong rise last month reaching 58%. This level of dominance was last reported in Dec 2017 when Bitcoin crashed while altcoins gathered more than 23% dominance in the market.

Many of the altcoins could simply be 'hypecoins', a pump-and-dump by short-term recreational investors. The best 'hypecoin' in illustration is XRP (Ripple) in which their coin prices fall back to the early 2017 days. Analysts could conclude that there was 'no real growth' in the coin's value in recent years. STEEM is also under the same pressure with a negative ROI YTD.


Source: pixabay

3. Growth Opportunities

Murad Mahmudov, founder of crypto fund Adaptive Capital, highlighted that many altcoins boosts the crypto market in future gains:

"While Bitcoin has been outperforming altcoins since April, I think altcoins which have tracked BTC movements most closely are the ones being accumulated by 'Smart money' investors and VCs: coins like Decred, Tezos, and Monero"
Source: Forbes

The crypto market which consists of Bitcoin and many important altcoins welcomes any form of support. It is an early market with an emerging potential. Often overlooked by current market prices, market capitalization and volume is crucial for long-term success.

-tysler

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The good news is that we're now only -64.2% down from the last ATH! 😂

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While the above are all good reasons to have Bitcoin as the Top Cryptocurrency, one could not argue that we have not seen a real surge in the popularity and demand for Bitcoin simply because people have not begun to use Bitcoin to its intended purpose (when was the last time someone ever paid another in Bitcoin).

We believe this rally is only a precursor of what's to come, hopefully as developers are incentivised to create better tools for the non technically inclined.

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@coingecko, the recent availability of Bitcoin at Starbucks has caused quite a stir!

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Don't tell Starbucks they've accepted Bitcoin though 😆