Crypto is most definitely a hot topic right now and that is because it is witnessing one of its strongest bull runs for a very long time. Back in 2017 we heard financial experts like Robert Testagrossa talking about just how explosive crypto would be in the future, but when the bear run came at the end of that year people once again threw doubt on this. The reality for so many however is that crypto is the future of finance and the run we are seeing right now certainly looks to be proof of that.
The leading light of the crypto world is of course Bitcoin and here is exactly why this is the safest bet across the cryptocurrency landscape.
Largest and Best Supported
The first point to make here is that Bitcoin is the single largest cryptocurrency by way of market cap, and that makes it one of the safest and the best regarded. Not only this but Bitcoin is also the best supported currency in terms of the wider world. In the last 6 months we hav finally seen big companies around the world wake up to what crypto is all about, and of course, Bitcoin has been where they have pointed their attention. Once Tesla bought up a huge chunk of the coin, other big corporations followed suit, and this is why the coin is so well supported.
One of the biggest issues with so many cryptocurrency coins was that the volatility was too much for many investors. Often this came about because of what we call ‘whales’. Whales are massive investors who actually had the ability to pump and dump the price of the asset based solely on their large wealth. Because of the growth of Bitcoin and the mass investment which it has seen, it simply isn’t possible for this to happen on the scale that it once could.
The single biggest threat to Bitcoin is the fact that the mining process for it is proof of work, and not proof of stake. The upshot of this is the monster energy costs which are associated with mining Bitcoin. This energy usage goes against so much of what the world is trying to do, and eventually we will see the pressure placed on the coin. The currency however very much has a plan in place to deal with this and to switch to a proof of stake operation. Once this happens, the coin will go into orbit.
Coming and Going
Something which we have to consider when it comes to alt coins is that so many of them are going to come and go. The smart investors will make a good chunk of cash on the initial rise of these coins, and then get out whilst the going is good. Bitcoin however will be here to stay and that is why so many are taking out their alt gains, and exchanging them for Bitcoin.
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