Table of Contents
Bitcoin, the world’s first and most popular cryptocurrency, has been making headlines since its introduction in 2009. Known for its extreme price fluctuations and revolutionary potential, it has made way for a new digital economy and inspired countless alternative cryptocurrencies (altcoins). However, as we step into 2024, with new economic conditions and crypto innovations, one key question arises: Is it still a worthwhile investment? So, let’s answer this question.
Bitcoin’s Dominance and Performance in 2024
In 2024, this coin continued to dominate the cryptocurrency market, holding a market dominance of around 57.3%. According to Binance Research, its market cap has surged by 37.5% since the beginning of the year. While altcoins have grown at a slower pace of 15.5%. Thus, this increase in its market dominance signals a strong position among investors who see it as a reliable and safe choice amid market volatility.
Its 2024 performance also reflects its status as a hedge against inflation and economic instability. Many investors consider it an attractive alternative to traditional assets, especially in uncertain economic times. This is because it remains free from centralized control or government intervention.
Factors Impacting Coin’s Price in 2024
Despite its appeal, this coin remains a highly volatile asset. Here are the main factors influencing its price:
-
Market Sentiment
Its value is often influenced by news, media coverage, and public sentiment. Therefore, regulatory developments, influential opinions, and changing economic conditions can cause price fluctuations.
-
Supply and Demand
Its limited supply makes it susceptible to increased price swings. When demand increases, especially among institutional investors, its price often increases. Estimatedly, 21 million coin cap increases demand as supply declines, equating its value to that of digital gold.
-
“Whale” Influence
Large holders, or “whales,” can significantly impact its price by buying or selling substantial amounts. Thus, the traders and analysts closely monitor their actions as they can create ripples in the market.
-
Bitcoin Halving Events
It undergoes a halving roughly every four years, which reduces the reward for miners by half. This event can impact its supply and potentially drive price increases over time. Recently, the supply and price potential of this coin were impacted by the most recent halving in April 2024, which reduced incentives to 3.125 BTC per block.
Key Bitcoin Features
The important features of this coin are:
- Its decentralized network gives users complete control over their money and transactions.
- Since its transactions are stored on the blockchain, they are all publicly accessible and verifiable.
- It has a 21 million coin cap, which can increase demand and make it a valuable asset.
- Users can conduct microtransactions without needing to possess a complete coin by splitting the cryptocurrency into smaller units known as satoshis (0.00000001 BTC).
- It is available everywhere, and it is particularly useful in areas where traditional banking services are rare.
Bitcoin vs Altcoin: Key Differences
Since the launch of this coin, thousands of other cryptocurrencies, or altcoins, have been developed. The key differences between this coin and Altcoin are:
-
Market Dominance and Adoption
While altcoins like Ethereum, Litecoin, and Ripple are used for specific cases, however, this coin is the most extensively used cryptocurrency.
-
Goal and Use
Often referred to as “digital gold,” it was initially developed as a decentralized money and store of value. Altcoins, on the other hand, might provide certain features, such as Ethereum’s smart contracts for decentralized apps (DApps).
-
Volatility and Price Movement
Altcoins can be extremely volatile, but this coin is more stable because of its greater market capitalization.
Start Trading Bitcoin with Confidence
This coin holds a unique position as both the first cryptocurrency and the most widely accepted. Its decentralized network, capped supply, and established presence provide value in a growing digital economy. The Altcoins bring diversity and specialization to the crypto space. This coin’s status as “digital gold” and its appeal as a borderless, censorship-resistant currency make it a compelling option for modern investors. It continues to shape the future of finance, paving the way for an era where digital assets play a vital role in the global economy.
