What Makes Bitcoin Different?
Last few months were a roller coaster ride for bitcoin and other Cryptocurrencies as well. Sometimes the prices climbed high and sometimes it was heart dropping low. It was really very hard to control the emotions. All the coins were running through the same circle, so how to distinguish one coin from another? And most important of all how an investor will distinguish to invest in it?
In this article, we are going to discuss how Bitcoin differs from all other coins when enough coining has been done of it.
All other altcoins had claimed that it is the improved version of Bitcoin and will rectify all the flaws that bitcoin has. In fact, all the altcoin thinks that they have innovated in some way or the other. But the real innovation had already happened with Bitcoin.
Bitcoin was the first currency to introduce decentralized digital scarcity and all other innovations that have happened with the introduction of all other altcoins are very tiny compared to the innovation done by Bitcoin. We should not forget the fact alternatives for Bitcoin has been proposed since 2011 and still, none of the altcoins have displaced it in terms of price, security, and usage.
Altcoins and ICOs have offered many different features but none of them got adopted or used as much as Bitcoin. What makes Bitcoin so special? We can answer this question in two subheadings; the network effect and decentralization.
The network effect
It has the largest network and gains from the network effect. As more and more people use this network the network grows thereby more and more people lock-in. As the network grows we can see the subtle unseen benefit of it. The benefits may not be visible from the surface but actually has second and third order benefits to the people confirming to the norms.
It has the largest network that means it grows in utility as well. The ecosystem of Bitcoin makes it easier to get it and keep than most of the Altcoins.
It is the innovator of decentralization; by decentralization, it means Bitcoin does not have a single point of failure or chocking. Bitcoin does not have any central authority to control it and diminish the utility of your coin.
Bitcoin is different because it is immutable, decentralized and unseizable. All these properties add on to the great store of value and no other atcoins offers these utilities.