What Makes Bitcoin Authentic And Unique In Crypto Markets
Bitcoin is a prime example of the network effect. It was born among a handful of users and is now used by hundreds of millions of individuals worldwide. In fact, that number is likely to reach a billion by the end of the decade. From there, the next billion will be almost automatic. Bitcoin’s dominance is incredible, and in such a short amount of time! The Bitcoin Effect has been triggered, and one should expect it to gain momentum in the years to come.
Looking back on the creation and success of Bitcoin, one has to stand in absolute awe at how this internet-based money has developed and grown to achieve worldwide adoption and investment from the highest levels of the investment world. When BTC first reached the $1 mark, it was widely considered a potential form of cash. Bitcoin has gone on to far exceed price expectations and predictions. It has also become more than cash. A lot of people look at the fees to transact on the Bitcoin network and subsequently decide that BTC makes for a really poor choice of cash.
What Makes The Lightning Network So Powerful?
The Lightning Network is only now starting to gain some utility and traction, largely due to El Salvador. I have been saying in many of my posts that people should stop worrying about fees on the native Bitcoin chain, since second-layer solutions like the Lightning Network would eliminate this issue. Many investors began looking for alternative cryptocurrencies to fulfill this use case, not realizing that BTC is equally capable.
Transacting on the Lightning Network is exceptionally fast and cheap! Because the Lightning Network is not for holding BTC but for spending, I use the Wallet of Satoshi. Safety is not really a major issue compared to saving. In other words, it is quickly depleted, small amounts are stored, and ease of use is paramount. Another great mobile Lightning Network wallet is Speed Wallet. Use this link to gain 1000 free satoshis after your first transaction.
Wallet Of Satoshi: Removing Barriers
The Wallet of Satoshi handles all the setup of payment channels, making it really simple and fast to use. This is pretty user-friendly and will help aid in the adoption of Lightning, in my opinion. Compound the fact that BTC had no premine, no ICO, and was the first of its kind! It is clear that BTC has established itself and secured its future by attracting enormous institutional investment. There is no doubt that other very important crypto projects out there have amazing use cases. However, BTC has now established itself beyond question and, due to the halving mechanism, guaranteed future growth.
The Domino Effect: How One Crypto Innovation Impacts The Entire Market
You cannot argue the data when it comes to the effects of halving events. In this, I am referring to coins other than BTC. The BCH halving had little to no effect. LTC had a short, yet modest effect. At the end of the day, BTC halvings provide a lifeline for altcoins. Altcoin lovers who hate BTC are like human beings who hate oxygen. You don’t get more counterintuitive than that. My view is, respect BTC for the role and significance that it plays, and have your altcoins. After all, I too HODL loads of alts!
A biased view will get you nowhere. However, an accurate view, whether you like it or not, holds the key to success. When it comes to markets, trading, and investing, there is only one paramount thing: being right! It is all about getting it right most of the time. Silly little biases are foolish and ultimately keep investors in the red. To interpret the market accurately means viewing it as it is.
A bias is a personal view of a certain individual or group of individuals on how they believe something should be. The problem here is an idealistic interpretation that, unfortunately, is unrealistic. A real interpretation is an accurate interpretation, which is unattainable when there are biased views in the equation.
Why Bitcoin Is A True Anti-Fragile Asset
When it comes to anti-fragility, Bitcoin fits the definition to a tee, making it a very unique and attractive asset. This is especially true in the current global and economic climate. The more an anti-fragile asset is attacked or exposed to harsh economic conditions, the more it benefits. It can be said that an anti-fragile asset not only benefits from a shock but is almost dependent upon it.
What does this mean for Bitcoin? It means that BTC actually thrives amid turmoil, chaos, and economic insanity. With the acceleration of quantitative easing and excessive money printing, BTC has actually found assistance in a climate that would otherwise destroy conventional assets. This is extremely bullish! Add to it the shift currently taking place in value transfer and store of value, and things get even more bullish.
This excludes the brilliance of monetary issuance, achieved through the halving event and difficulty adjustments. Add all of these factors together, and you have a perfect recipe for tremendous price appreciation. Bitcoin is strategically programmed to increase in value over time. It is unlike any other asset in existence. It has a favorable monetary policy, unlike fiat currencies.
Could The Entire Crypto Market Benefit From This?
This is not an exclusive sequence of events! The Bitcoin effect has a knock-on impact on the entire market, causing altcoins to rise in a way similar to a high tide lifting all boats. This obviously works in reverse as well, and a Bitcoin dump will confirm that very quickly! Over the long term, HODLing BTC has consistently proven to be a wise approach. The accumulation of BTC is imperative for every crypto investor and deserves an allocation in every portfolio.
As we look to the final leg of this bull cycle, we are all watching Bitcoin. This serves as a reminder of how pivotal Bitcoin is in the grand scheme of things. I hope this helps focus your perspective and view the market a little more clearly. The market still needs BTC, and until it doesn’t, it is best to come to terms with it and strategize accordingly.
Final Thoughts
Bitcoin is a unique asset specifically designed for the 21st century and the issues it entails. It was created to thrive on network effects, and it appears to be doing exactly what it was intended to do. It is disrupting existing monetary systems and ideas, a strong sign of Bitcoin’s power in the modern world. The Bitcoin effect is in play, and nobody can stop it. Thanks for stopping by. All the best! See you next time!