Bitcoin was the first cryptocurrency ever, created by Satoshi Nakamoto in 2009. It uses the SHA-256d hash function and was built on the Proof-of-Work blockchain.
Since its inception, Bitcoin has gradually gained momentum as the most popular one in its lot. As a result, today it stands with the highest market capitalization, accounting alone for more than half of the total cryptocurrency market. For Bitcoin, it has been a snowball effect – it was preferred because it was popular, which only made it more popular. Its sheer popularity has also led many other creators to simply copy the Bitcoin algorithm/blockchain with minor changes. Bitcoin is accepted by all major coin exchanges. In fact, you can trade bitcoin (instead of fiat currency) for any other cryptocurrency.
This makes it extremely easy for new users to begin trading in bitcoin, compared to other cryptocurrencies. Even outside the investment world, bitcoin has been gaining base as a valid mode of payment. Some of the major corporations like Microsoft have started accepting bitcoin for financial transactions. All of this has only made it all the more appealing to cryptocurrency enthusiasts.
Currently, Bitcoin reigns as the undisputed king of the cryptocurrency market. It has a whopping market cap of $131 million, which is 68 percent of the total market cap. As far as investment purposes go, Bitcoin still has its potential. Despite being extremely volatile, it somehow acts as a baseline for the rest of the market. So when Bitcoin crashes, so does most of the other cryptocurrencies. But it is worth noting that only 21 million bitcoins would ever be mined. Out of them, 18 million are already in circulation. Getting hold of them now might prove to be a valuable asset once the mining is complete.
We have put together the ultimate beginner’s guide for understanding and investing in cryptocurrency!