Bitcoin - everyone who "sits" for a while in the world of cryptocurrencies, knows almost everything about Bitcoin. When writing about it, it is difficult to avoid clichés. Almost everyone in the world has heard about it!
What is Bitcoin BTC?
Bitcoin is the first and, as a means of payment, the most widely accepted cryptocurrency. Currently in this respect it overtakes many national currencies, because it is a global currency. It should be described as a reference currency. Between Bitcoin and the whole market is still a sign of equality. What happens to the Bitcoin course describes and affects all others kryptowaluty - whether we like it or not.
The relationship between Altcoin and Bitcoin
Altcoins are bought mainly for bitcoins. Thus, the prices of altcoins are primarily expressed in bitcoins, not in dollars. As a result, the price of some cryptocurrency may not change and may be, for example, 200 Satoshi (the smallest part of Bitcoin 0.00000001 BTC, named after the creator's name), but when the price of bitcoin at that time drops by half and what investors most interest, i.e. the dollar value, will also fall by half (despite no change in the price on the stock exchange).
This results in the sale of altcoins by investors, which in turn intensifies declines. If the price of the given altcoin falls from these 200 to 100 satoshi, the bitcoin price will fall by 50%, as a result our altcoin in relation to the dollar will be lower by 75%. To get out of such an altcoin for dollars, in the next step we have to sell our bitcoins (received for altcoin), which causes the price of bitcoins to drop. It is similar in the opposite direction, although not so dynamically. This translates into a longer waiting time for the increase in the altcoin value. What's more, sometimes the prices of altcoins are maintained by investors in relation to the dollar, so a rapid increase in the value of bitcoin causes ... declines in value (BTC and USD) of altcoins.
Bitcoin as a long-term investment?
Bitcoin for some investors is a kind of long-term depositsomething like gold because of deflation. However, it was created as a means of payment, and a year ago payments were not possible using it. The fees were horrendously high and the network was blocked. The transfer went even a few days. There are also many better cryptocurrencies for payment today. Is Nano about fast and free transfers, it is Litecoin, Ripple, Stellar and many others. However, in this industry one of the most important aspects is mass acceptance of a given cryptocurrency. Nano, we will not buy anything in Poland today, but for Bitcoin, yes. In the future, the type of cryptocurrency owned may not be of much importance, because thanks atomic swap, it will be possible to swap one currency instantly for another. Until then, the future in the category of payment should be seen in bitcoin and litecoin, as the two most recognizable and the most commonly accepted ones.
Currently, more and more stock exchanges are supporting segwit. Bitcoin transfer fees have dropped to several dollars, and their time has been reduced to several dozen minutes. We are waiting for further improvements, including to improve scalability (e.g. Lightning Network). Thanks to this, in the future bitcoin can be the most popular payment method in the world. It's good to have it in your wallet.
Investment security is a significant issue. In recent months, views have appeared that bitcoin cash will survive as the real Bitcoin, and Bitcoin Core will cease to exist because no one will want to extract it. In this context, the long-term investment in bitcoin was very uncertain. Another thing, that in terms of capitalization, other, much better cryptocurrencies of newer generations, can overtake obsolete bitcoin. It's hard to foretell as it will be. At the moment, it seems unlikely that in the coming months or years some cryptocurrency would replace it - especially considering the upcoming bitcoin improvements.
Bitcoin is just a payment medium. Currency. It's his only application in the real world. Many altcoins should be treated as company shares, which in the future have a chance to become the largest in the world. In addition, these shares are often of utility value, as access tokens or a means of payment. There is nothing today behind bitcoin that other cryptocurrencies would not have.
BTC spoiling from the inside ?! Core changes through the introduction of Lightning Network. The idea of bitcoin assumed the decentralization of the entire chain. Idea LN assumes decentralization of the chain, recording records for main transactions and centralization for microtransactions (so-called MBTC) that will take place outside the main chain. LN will lead to centralization because transactions are to pass out of the main chain through centralized hubs, only large hubs can provide adequate liquidity for LN operations, these large hubs will resemble large banks in the Fiat system, which is contrary to the idea of decentralization.
Despite the above drawback, there is a high probability that Bitcoin will gain value as the cryptocurrency market will grow. It can achieve very high values not because of technology, because it is already outdated against new faster cryptocurrencies, but due to the current advanced adaptation and symbolism and idea, Visibility, who stands behind him.
BTC, in terms of investment, reminds me a bit of art, antique, expensive cars. There is no real valuebut it is a recognizable brand. Many people do not know that there are still some besides bitcoin other cryptocurrencies. He became the object of interest of big players. It's bitcoin futures, among others he - as the cryptocurrency with the largest capitalization - is chosen by millionaires. And we, whether we like it or not, as cryptocurrency investors, are doomed to the need to use and (at least periodically) own bitcoin.