Since the end of 2023, there has been a lot of buzz around Bitcoin and other digital assets, mostly because some experts believe that the price of it could easily reach 100.000 dollars at some point in 2023. This means that if you’re planning on investing in cryptocurrencies, now might be the right moment for doing so.
However, with so many cryptos available on the forever-growing and competitive market, you might be wondering what separates Bitcoin from other cryptocurrencies out there. To make things easier for you to understand, let’s look at our 2023 guide on what separates Bitcoin from other cryptos:
How Does it Work: Explained
Before we take a look at what makes Bitcoin different from other cryptos available on the market, it’s worth mentioning how this digital asset actually works. Although most people think that it’s difficult to understand the processes behind this crypto, it isn’t, mostly because it’s a currency that works like any other, however, with a few differences. Basically, it’s a cryptocurrency that enables peer-to-peer payments, without having to use an intermediary such as a bank for each transaction made.
Besides this, there isn’t a physical version of the coin, which means that it cannot be tracked. Each Bitcoin available is created or in most cases, mined, by utilizing encrypted codes – a combination of letters and numbers – which is the same combination used for unlocking it. There is a specific number of coins available – currently, 21 million – and they’re completely decentralized, which suggests that they aren’t regulated by financial institutions and/or governments.
So, What Separates Bitcoin From Other Digital Assets?
Since you now know what this particular digital asset is, you might want to learn what makes it different than some other options available on the market. This is, of course, an incredibly important thing to learn, especially if you’re planning on investing in it. There is a wide range of things that makes this particular crypto different than some others that you might have heard about, including the following things:
1. It’s More Accepted Than Other Digital Assets
If you’ve been reading various headlines lately, you probably know that the acceptance of Bitcoin has increased in every single country in the world and there are also popular brands and companies that have publicly endorsed the implementation and use of these digital assets. And, when you consider the fact that this particular coin is the OG of cryptocurrencies, the reason behind its popularity becomes crystal clear.
Also, it’s worth mentioning that the number of people that have opted for using a Blockchain wallet has been on the rise since the beginning of 2019, which is an indicator that the popularity of this crypto can only go up instead of down. This cannot be said for some other options available on the market, which is exactly what separates Bitcoin from other digital currencies that you could opt for investing in.
2. The Investments Are Rising
If you do some digging online, you’ll see that there are various reports and studies that concluded that the number of people buying Bitcoin through various platforms such as PayPal has been increasing. In fact, the profit one of such platforms and apps made last year soared to more than $1.5 billion, meaning that more people purchase crypto than ever before. Keep in mind, before opting for a particular platform, read more about them so that you learn what features they offer.
3. You Don’t Have to Worry About The Macro Investment Climate
Yet another thing that separates this token from some other ones is that it’s incredibly suitable for a macro investment climate. What does this mean? Well, for you to understand, we need to go back in history. When it was initially created in released around 2009, there was a global financial crisis going on, which is why people chose to ignore the release of Bitcoin. However, several years later, our world was experiencing another crisis, but this time, cryptos became more popular than ever.
Why did the popularity rise during the second global financial crisis? Well, it’s relatively easy to understand – Bitcoin isn’t monitored, regulated, or created by physical financial institutions, which basically implies that our governments have no way of knowing whether or not we own cryptos, and if so, how much we own. This unique, beneficial, and useful proposition of Bitcoin is exactly why you should choose to invest in it.
4. You Can Measure The Stock to Flow Easily And Quickly
You might not be familiar with the concept of Stock to Flow or as it is also commonly referred to as S2F for short. What is it? Well, basically speaking it’s a specific method used for quantifying the exact amount of scarcity revolving around a particular product. As you might know, the stock represents the whole supply of coins available in circulation, while the flow is something that represents the exact number of coins released every year.
Since this crypto is an open-source digital asset that has a specific schedule that is followed every year, it’ll be incredibly simple and easy for you to measure the stock to flow, and in most cases, you can ensure that it is 100 percent accurate. Now, don’t get us wrong, just like any investment out there, there is a risk that comes with purchasing this digital currency as well. One of the, perhaps, most important ones that you might want to know about is that the price tends to fluctuate all the time and there are sharp drops happening, but this is good news, mostly because it’s evidence that Bitcoin is successful.
As you were able to learn, there is a wide range of factors that separates Bitcoin from some other currencies available on the market. Not only are the investments rising, but this digital asset is more accepted and popular with people, which is why you should seriously consider investing in it.
So, since you’ve now learned why Bitcoin is different from other cryptos out there, you really shouldn’t lose any more of your free time. Instead, if you never invested in digital assets before, start reading different tutorials and guides so that you can determine what you’ll have to do to start investing in cryptos!