Reasons Bitcoin Will influence the entire crypto market in the nearest Future

If you have been following the cryptocurrency trend, you will notice that every time Bitcoin's price goes down, alternative cryptocurrency prices (commonly called altcoins) follow. The opposite is equally true – when the price of bitcoin rallies, we expect altcoins to go up in price shortly after. But what could be the cause of this,. Before we get started, he's a little reminder about how Bitcoin came to existence.

What is Bitcoin?

Bitcoin was launched in 2009 by the Satoshi Nakamoto. Although, the true identity of the creator remains unknown, Bitcoin keeps dominating the crypto world. 

The purpose of creating Bitcoin was mainly to provide a universal digital currency, where users could exchange value without the need of any intermediary. 

His aim was to create peer-to-peer digital currency with a limited supply, that would provide a hedge against inflation and open the internet economy to anyone on the globe. 

Since the introduction  of Bitcoin, miners and users have evolved into a trillion-dollar financial system that spawned an entire crypto industry. 

Reasons Bitcoin Will influence the entire crypto market in the nearest Future

1. Bitcoin was the first:

Bitcoin being the first coin in the crypto industry has put a lot of weight on Bitcoin. It has become very popular among investors and decision makers. However, this has also allowed the original cryptocurrency to cement itself as a sure store of value, increasing its popularity to astronomical levels. 

 Bitcoin is considered was the first coin that brought about the revolution in crypto currency market. It therefore paved the way for an entire industry, and today, almost anyone involved in crypto owns at least some bitcoin. 

2. Many altcoins are just Bitcoin clones

As a direct result of its increasing popularity and value, we saw a proliferation of Bitcoin clones during the years after its release. 

For instance, the first altcoin to see mainstream adoption, Litecoin, uses a copy of the Bitcoin code with the goal to become a lighter and faster version of the original. Many other such clones exist such as Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, and dozens more. 

Each trying to become a better version of Bitcoin, most of the time, they just follow its lead. 

3. Bitcoin has the most secure network

Bitcoin is based on a proof-of-work mechanism that is ensured by more than 18 million miners participating in Bitcoin’s decentralized network, the blockchain. 

This volume of participants has an effect of a high level of decentralization of the network, ensuring flawless security of the Bitcoin payments system. 

Many investors regard it as a reserve currency for cryptocurrencies 

Because of its pioneering status, investors often consider Bitcoin as the reserve currency of the cryptocurrency market, similar to the USD in the global stock markets. 

Furthermore, many cryptocurrency trading platforms do not propose crypto to fiat trading due to compliance and regulatory measures of their countries. As such, a large number of investors initially invest in Bitcoin to trade it for altcoins and try to make profits thereafter. 

4. Bitcoin is widely Accepted:

It is obvious that many business are now accepting Bitcoin as means of payment making a lot of people to have more confidence in Bitcoin compared to other coins. Using means of payment in different businesses around the world increases the number of Bitcoin  transactions in the network. Hence a lot of people pay more attention to its current price to know when the market is favourable for business transactions.

5. Most crypto traders never compare altcoins’ prices to fiat currencies. Instead, they compare their value to BTC, as it’s the market pair that matters the most to them. 

As such it’s completely understandable to see the entire market prices drop when Bitcoin’s market sentiment plummets. 

Conclusion

Bitcoin is the first cryptocurrency that opened the entire crypto industry. This pioneering status has enabled it with a multi-billion userbase which in turn helped skyrocket its price and provide the most secure network in the ecosystem. 

It’s important to understand that Bitcoin often has the final word when it comes to market sentiment. Experienced traders and investors always check Bitcoin before buying or selling their altcoin position.