Cryptocurrencies like Bitcoin are 'apolitical' says financial expert
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Bitcoin was the first cryptocurrency on the scene and since its creation, it has dominated the crypto market. Despite the development of other cryptocurrencies, bitcoin continues to fly ahead, leading the market by a huge margin. Why are altcoins such as ethereum, Cardano and Binance Coin failing to catch up?
Bitcoin is the world’s first decentralised cryptocurrency, it was launched by an anonymous group of programmers back in 2009.
The last decade may have seen a flurry of new altcoins being launched onto the crypto scene, but bitcoin has continued to be the largest player on the market.
René Pomassl, CEO of Salamantex told Express.co.uk bitcoin’s advantage of being the first on the scene gave it an all-important head start against other cryptocurrencies.
He said: “This means that although thousands of cryptocurrencies are now in circulation, none have had as much time to draw in as much recognition and coverage as Bitcoin.”
READ MORE: Bitcoin price latest: BTC SOARS but will its value surpass Apple?
Will other cryptocurrencies get anywhere close to Bitcoin’s price?
Bitcoin continues to be the most popular and well-known crypto on the market, with investors choosing to invest in bitcoin rather than in less well-known altcoins.
Jeremy Cheah Associate Professor in Crypto-Finance and Digital Investment at Nottingham Business School told Express.co.uk: “In time, some cryptos might catch up as those cryptos gain popularity and become better understood.”
But in the short term, it seems unlikely that altcoins will be able to close the gap between themselves and bitcoin.
Bitcoin’s current price stands at £40,521.45 as recorded by Coinbase on October 13 at 2pm.
In comparison, the second market leader is ethereum which was valued at just £2,549.81, followed by Binance with a value of £340.69.
It seems no other cryptocurrency can get anywhere close to bitcoin.
The market leader continues to set the trends in the crypto market – as its price rises and falls, other altcoins usually mirror its movements.
Mr Pomassl explained: “The dominance of bitcoin means that it is viewed by investors as an index of the crypto market as a whole.
“Generally speaking, when the value of bitcoin fluctuates, so does the rest of the market.
“It’s therefore not unusual to see newer cryptocurrencies such as Dogecoin mirror bitcoin’s price swings.”
Although bitcoin continues to set the trends in the crypto market, there has been a spike in investment in altcoins such as Shiba Inu in recent weeks – could this indicate a change in fortunes for altcoins?
Altcoins are becoming progressively more accepted by investors and as a result, their prices have started to rise.
Tesla and SpaceX chief, Elon Musk, has spoken out in favour of certain cryptos.
His supportive tweets have been attributed to the rise of Shibu Inu and Dogecoin.
On February 4 2021 Mr Musk’s tweet: “Dogecoin is the people’s crypto”, caused the currency to suddenly leap by 50 percent in a day.
While on October 7, the crypto enthusiast’s tweet on Shiba Inu saw its prices jump by 40 percent just hours after Mr Musk’s post.
Mr Pomassl said: “What is clear, is that cryptocurrencies are pushing closer to mainstream adoption, and as the popularity increases, so does the price.”
It seems as more investors come out in support of altcoins their prices could start to rise, but only time will tell if they can catch up with bitcoin.
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