How Bitcoin is Different from Other Cryptocurrencies

What is Bitcoin?

Bitcoin is a decentralized peer-to-peer payment system. The Bitcoin whitepaper was first released towards the end of 2008 when its anonymous creator, Satoshi Nakamoto, sent it to some recipients on a cryptography mailing list. On the 3rd of January 2009, the first block of the blockchain ledger was mined by Nakamoto and the Bitcoin network was brought into existence.

How Bitcoin stands out from other Cryptocurrencies

The First Cryptocurrency to go Mainstream

It’s most distinguishing feature is perhaps the fact that it was first to market. It laid the foundation for the creation of other cryptocurrencies like Bitcoin Cash, Litecoin, XRP, Ethereum and 2,164 others.

First to Introduce Blockchain Technology

Bitcoin runs on a sophisticated technology called blockchain. This technology disrupting industries beyond digital currency. From education to politics, the decentralized ledger has transformed how record keeping is done in various industries across the globe.

Anonymous Creator(s)

Unlike Bitcoin, other types of digital currencies including; Ethereum, XRP, Bitcoin Cash and Litecoin can be traced to their creators. In Bitcoin’s case the creator(s), Satoshi Nakamoto, has maintained complete anonymity before and after his “disappearance” in 2009. While there are dozens of opinions against his anonymity, critics and analysts alike have alluded the huge success of bitcoin to the anonymity of its creator. The fact that it can’t be traced to one single person or group of people is a major distinguishing factor.

Number of Users

Bitcoin has the largest number of users. A recent report from Bitcoin Market Journal revealed that there are 7.1 million active bitcoin users, and almost 32 million bitcoin wallets had been set up as at December 2018.

The first digital currency asset that most people opt for

Bitcoin is the first digital currency that most people buy, most likely as a result of its popularity. Even when they buy other cryptocurrencies, they still own some bitcoin. This is because most people are familiar with it. So, if you’re a newbie, you might want to consider starting with Bitcoin.

Becoming a widespread payment option

Initially, Bitcoin was used for illegal transactions online which came to light in the Silk road saga. The silk road was an online black market, famous for selling illegal drugs. Hundreds of illegal transactions were made daily under the anonymity bitcoin transactions offered. Today, Bitcoin is fast becoming a payment option for more merchants and is shedding its initial negative perception.

More Use Cases

Bitcoin’s utility continues to climb. Ethereum also has a lot of ground-breaking potentials, but bitcoin has expressed some of its own utility in practical terms. This is why it has drawn a lot of attention and why its value continues to rise in the market.

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Quidax is an African focused cryptocurrency exchange that provides a simple platform for you to send, receive, store, buy and sell digital currencies. Our aim is to educate you about cryptocurrency. It should not be considered as financial advice. We recommend conducting your own research before deciding to buy, sell or hold any cryptocurrency.