Bitcoin (BTC) Still the King of Cryptocurrency, and Just Might Be the New Gold
Despite its long fall in value from the heady 2018 days of 20,000 USD per unit, Bitcoin (BTC) is still the undisputed king of the cryptocurrency world.
As the manic price action of 2018 fades into memory and the steady adoption of blockchain technology and cryptocurrencies continues to advance, it will likely be Bitcoin (BTC) that continues to dominate as an alternative store of value for the foreseeable future.
Moving Past 2018
The reputation of Bitcoin (BTC) and cryptocurrencies in general took a hit as a result of the manic boom and bust price action of 2018.
However, in retrospect the events of 2018 were a sign that cryptocurrency had finally come into the mainstream. As a growing number of people became aware of cryptocurrencies and blockchain technology and their enormous potential, there was a manic rush to buy in while the valuations were still low. This sudden mass awareness and interest led to the inflation of a classic financial bubble, which occur regularly in traditional assets as well.
Now that the bubble has popped and the mania has passed, Bitcoin (BTC) and other cryptocurrencies can resume their gradual appreciation in price as they become increasingly mainstream and come to dominate an ever growing share of the currency market.
King Bitcoin and the New Gold
While newer cryptocurrencies have been developed that promise a better means of performing fast and cheap transactions, Bitcoin (BTC) still remains the cryptocurrency of choice as an alternative store of value.
Because Bitcoin (BTC) has the name and market dominance that comes from being the original cryptocurrency, it is still the coin of choice when investors are looking for an alternative means for storing wealth outside of the traditional financial markets.
The role of alternative store of wealth was once dominated by gold, with a few additional precious metals seen as reasonable alternatives or complements to gold. However, gold has recently seen much lower trading volumes during market downturns, whereas the volume of Bitcoin (BTC) traded during these times has exploded.
The Future of the New Gold
Even some major governments have had serious discussions about transferring some of their national reserves to Bitcoin (BTC) so that they can escape the reliance on gold as an alternative store of value.
Because Bitcoin (BTC) has the name and reputation that it does, it is likely that it will continue to be the cryptocurrency of choice when individuals, organizations and even countries are looking for an alternative store of value.
Furthermore, there are few additional changes to cryptocurrencies that could be made to turn them into a better store of value than the Bitcoin (BTC) system, so it is highly unlikely that a new coin will be developed to take its place as the king of cryptocurrencies for value storage.
Bad economic, political and financial times are inevitable. It is only a matter of when, not if. Therefore, Bitcoin (BTC) will continue to see sharp increases in value as it continues to eat into the market share of gold as a highly prized alternative means of storing value beyond the traditional financial markets.
Disclaimer: The author of this article does not currently invest in any cryptocurrencies so that they can offer an unbiased perspective on the current blockchain and cryptocurrency space.