According to research material from the Kraken exchange, 73% of cryptocurrency owners in the US plan to continue investing in crypto currency next year. At the same time, 70% of respondents prefer to invest in bitcoin. By comparison, meme tokens and coins of newer blockchains were supported by only 12% and 17%, respectively. Why is bitcoin still the leader?
1. Bitcoin was the first cryptocurrency to enter the market in 2009. Over the years, it has proven itself to be a reliable and stable digital asset. Investors tend to trust assets with a long history and a proven track record.
2. Bitcoin is widely regarded as the most secure and attack-resistant blockchain platform due to the high degree of decentralization of its network. Bitcoin is not controlled by any organization or government, which attracts investors who want to avoid traditional financial institutions.
3. Many large institutional investors and companies such as Tesla, MicroStrategy, and Square have already invested significant amounts in bitcoin.
4. Bitcoin holds the largest market cap of all cryptocurrencies, making it the most liquid digital asset. Such liquidity allows for quick purchase or sale of an asset without significantly affecting its price. All crypto exchanges support BTC, making it accessible and easy to exchange for fiat money or other cryptocurrencies.
5. The ecosystem around bitcoin includes numerous wallets, exchanges, analytical tools, forums, and educational resources. This helps to further increase trust and ease of use.
Bitcoin is part of financial products and services, including:
BTC futures and options: These financial instruments allow investors to hedge their risks or build trading strategies based on the future price of bitcoin.
Bitcoin-based funds (ETFs): for example, the first spot bitcoin ETFs have recently been launched, allowing institutional and retail investors to gain exposure to bitcoin through traditional financial markets.
Bitcoin lending and borrowing: decentralized finance (DeFi) platforms offer lending and borrowing opportunities where BTC can be used as collateral.
Payment systems: more and more companies and services are starting to accept Bitcoin as a means of payment, thus facilitating its integration into everyday financial transactions.