It all started with Bitcoin!Even though the concept of digital or virtual currencies was around for a while, there was no perfectly suitable or acceptable version that could be used for mass adoption. However, this changed with the invention of Bitcoin, back in 2009 by Satoshi Nakamoto. The identity of the creators of Bitcoin still remains unknown, however, their invention caused a major development in the global economic structure. Bitcoin emerged as a peer-to-peer digital currency with a limited supply of 21 million. This limited supply would fight against inflation and its demand and supply will add on it its worth. Bitcoin has revolutionized the sector of finances and has provided an effective alternative to the consumer sector. Being the pioneer and the flag bearer of the crypto industry, there is a lot of weight on Bitcoin’s shoulders. Its ever increasing popularity has attracted eyes from almost every sector and industry in the world. Bitcoin was the first one to familiarize the users with the concept of crypto. It put the concept into the mainstream field and paved the way for an entire industry to flourish. This is primarily the reason that Bitcoin drives the trends in the crypto market.
Affect of Bitcoin on other cryptocurrenciesBitcoin has acted as an example for several coins in the market. Many coins copy the proof-of-work mechanism of Bitcoin in their protocol, while several tokens copy the code of Bitcoin to become more effective, lighter, and faster. It would not be entirely wrong to say that Bitcoin has played the role of the leader, as many coins in the market just follow its lead at numerous times. Its larger market cap, high trading volume, mass adoption, and acceptance have significantly influenced the entire crypto market to a certain degree.
It has been evidently observed that many altcoins and other tokens follow the path of Bitcoin when it comes to its price fluctuations. At a time when Bitcoin fared at its all-time high, almost every coin was making big gains in the market. However, as soon as Bitcoin drew back, the altcoins also came crawling back. Moreover, investors are more interested in exploring the scope of Bitcoin due to its popularity which has meant that Bitcoin kept its dominance over other coins in the market.
Bitcoin also stamps its authority by commanding over 50% of the entire cryptocurrency market. Smaller coins and tokens look rather incompetent in front of Bitcoin. Many investors move their investments from other coins to Bitcoin, resulting in a major disruption in the market. In a broader perspective, it can be said that the constant upsurge in Bitcoin’s price is as devastating as its depreciation. Either of the two can have a strong impact on the rest of the cryptocurrency market. A balance between Bitcoin’s growth as compared to the rest of the coins will reap more positive results for the entire crypto industry as a whole. However, there is nothing denying the fact that Bitcoin majorly influences the prices, trends, applications, and features of other cryptocurrencies.