Bitcoin Outclasses Other Cryptocurrencies as an Investment Option, Here’s Why

Share Article

Cryptocurrency investors have been pushed to move beyond Bitcoin (BTC). With hundreds of altcoins to choose from and several seeing some massive gains thanks to the 2017 bull run, investors have had their pick of the litter when it comes to making speculative investments on what they believe would be the next big thing.



However, things haven’t gone particularly well for a lot of these guys. Earlier today, a tweet from a cryptocurrency investor with Twitter handle (@jratcliff) showed the performances of some of Bitcoin’s competitors in the industry since the bullish run of 2017.



According to him, investors would have lost more than half of their funds if they had chosen these altcoins over Bitcoin. As the asset was up 89 percent for the past year alone, while the majority of these altcoins had seen negative returns. This isn’t shocking, as Bitcoin has fueled the vast majority of the bullish runs we’ve witnessed to date. It’s been the catalyst of growth for the cryptocurrency market as a whole, and while many developers claim their assets could be better, they still owe a lot of their visibility to Bitcoin.

Why BTC Dominates

Bitcoin’s dominance in the cryptocurrency market is absolute. It still leads the market in terms of market share and trade volumes. Currently, the Bitcoin Dominance Index – a metric that’s tracks Bitcoin’s share of the global cryptocurrency industry by market capitalization – stands at 66.45 percent. When one entity controls half of a market shrug hundreds of participants, it’s a behemoth.

But, beyond being used for speculative purposes, Bitcoin has been adopted as a means of payment by some major companies. Some payment processors have also added it to their list of settlement assets. Scaling technologies like the Lightning Network have also increased support for BTC, bringing the asset closer to regular spenders.

Institutions also made in-roads into cryptocurrency, but their eyes have largely been fixated on Bitcoin. Firms like Bakkt and Grayscale Investments have led the charge, doing their bit to meet the demands of institutions.

$1 Bitcoin in 2010 Will Give You $90k Today

Although Bitcoin has plummeted a lot this year since rallying from the cryptocurrency winter of 2018, the asset’s dominance as an investment vehicle has spread across the investment circle as a whole. Earlier this week, CNN released a roundup of assets and their performance across the past decade and crowned Bitcoin as the best-performing assets of the decade.

Quoting data from Bank of America Securities, the news medium pointed out that a $1 investment in Bitcoin at the start of the decade would have yielded $90,000 today. In comparison, U.S. stocks, 30-year treasury bonds, and gold would have yielded $3.46, $2.08, and $1.34 respectively today on a $1 investment made a decade ago.


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Related topics

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and head-on experience in the cryptocurrency space. He has worked as a Bitcoin journalist and editor for the past five years. Jimmy has a degree in Economics and has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system. When he's not covering cryptocurrency news or working on reviews, he's watching football or playing COD. His work has appeared on popular networks like Bitcoin Magazine, MoneyCheck, YahooFinance!, and CCN. Follow him on Twitter: @adejimi

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Free Cloud Mining Providers to Mine Bitcoin in 2021


How To Mine Cryptocurrency: Beginner’s Guide

Let's Go