Bitcoin - anyone who has been "sitting" in the world of cryptocurrencies for some time knows almost everything about Bitcoin. Therefore, when writing about it, it is difficult to avoid clichés. Almost everyone in the world has heard of him!
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 during this time drops by half and what investors are most interested in, i.e. the dollar value, will also drop by half (despite the fact that the price on the stock exchange remains unchanged).
This causes investors to sell altcoins, which in turn exacerbates the declines. If the price of a given altcoin drops from those 200 to 100 satoshi, and the price of bitcoin drops by 50%, as a result, our altcoin will get cheaper than the dollar by 75%. In order to switch from such an altcoin to dollars, in the next step we have to sell our bitcoins (received for the altcoin), which causes the price of bitcoin to drop. The other way is similar, though not so dynamic. This translates into a longer waiting time for an increase in the value of altcoins. Moreover, sometimes the prices of altcoins are held by investors against the dollar, so the rapid increase in the value of bitcoin causes ... the value (BTC and USD) of altcoins to drop.
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 it will survive as THIS real Bitcoin and the Bitcoin Core will cease to exist because no one will want to mine it. Against this backdrop, long-term investment in bitcoin was very uncertain. Another thing is that in terms of capitalization, other, much better, newer-generation cryptocurrencies can outperform outdated bitcoin. It's hard to predict what it will be like. At the moment, however, it seems unlikely that any cryptocurrency would replace it in the coming months or years - especially considering the upcoming bitcoin improvements.
Bitcoin is just a payment medium. Currency. This is its only use in the real world. Many altcoins should be considered as company shareswhich in the future may become the largest in the world. In addition, these actions often have utility value as access tokens or means of payment. There is nothing behind bitcoin today that other cryptocurrencies would not have had.
BTC spoiling from the inside ?! Core is changing with the introduction of the Lightning Network. The idea of bitcoin was to decentralize the entire chain. The idea of LN assumes decentralization of the chain, recording of records for main transactions in it and centralization of microtransactions (the MBTC) that will take place outside the main chain. LN will lead to centralization as transactions are to pass off the main chain through centralized hub nodes, only large hubs can provide adequate liquidity for LN to operate, these large hubs will resemble large banks in the Fiat system, so this is against 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, include he - as the cryptocurrency with the highest 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 temporarily) own bitcoin.