Experts define Bitcoin as a form of decentralized digital money. The network is designed to offer a better and more secure way to keep money instead of in the bank. Additionally, Bitcoin allows people to send money globally online without the interference of a third party.
In this article we will be discussing three features that make Bitcoin different from other cryptocurrencies: i.e. anonymous founder, popularity and decentralization. So let’s dive in.
What Is Bitcoin?
Bitcoin is a cryptocurrency that is distributed, worldwide, and decentralized. With Bitcoin you are your own bank. This means that it isn’t based on a one man computer and it is not controlled by any government.
Bitcoin also acts as a medium of exchange. Hence, you can use it to pay for products and services globally if the merchant accepts it.
Apart from Bitcoin, so many other cryptocurrencies exist. You may have heard of them, but probably haven’t thought of using them since you don’t know how they work. But Bitcoin happens to be the most popular due to its many features.
So, what makes bitcoin so popular even though there are still other coins that someone can choose from?
Anonymous Founder
Bitcoin was founded by a group of people or an individual named Satoshi Nakamoto in the year 2008. Satoshi later handed ownership to other people. Hence, the network does not require financial institutions to facilitate the transaction or verify ownership.
Having an anonymous founder makes Bitcoin different from other cryptocurrencies where there is a known founder or company behind the underlying network. Oftentimes, the comments of the founders or regulatory developments involving the company can have a negative impact on the price of the asset. Bitcoin does not have to deal with this challenge because it is a community-led movement.
Popularity
Bitcoin’s most important innovation is the concept of a public blockchain, a public ledger containing a record of every bitcoin transaction. Since Bitcoin was created, it has gained popularity worldwide and it remains the largest even though tons of other cryptocurrencies now exist.
Bitcoin’s price movement also has a strong impact on the rest of the crypto market. Hence, when the price of Bitcoin declines, most other cryptocurrencies also decline, albeit with more severity. It is not surprising, then, that most new investors with insight into news on cryptocurrency normally invest in Bitcoin first, or allocate a significant portion of their portfolio to their assets.
Decentralization
Decentralization means transfer of power of a system to several authorities or individuals rather than one single one. Understanding what decentralization means is very important not just when dealing with bitcoin but also other cryptocurrency.
Systems that are centralized often fall victim to conflict and manipulation of money, but a decentralized system cannot fall victim to such. In the case of Bitcoin, its features, such as the total supply and protocol changes, are determined by the larger number of network participants.
Bitcoin is public, open and permissionless. It doesn’t require any credentials to open a bitcoin account. Bitcoin’s core code and information are stored on multiple servers around the globe. Although these same features are inherent in other cryptocurrencies like Ethereum, none of these networks are theoretically as decentralized as Bitcoin.
Conclusion
Although Bitcoin shares some properties with other cryptocurrencies, there are key differences. This article mentioned three of the most popular ways to distinguish between bitcoin and other cryptocurrencies. Even though we didn’t know who the founder of bitcoin was, we came to realize that it is one of the most popular coins out there with a record for being trustworthy, secure and decentralized. Unlike other cryptocurrencies, bitcoin is limited which makes it unique.
