There’s no denying that Bitcoin (CRYPTO:BTC) is the rock star of the cryptocurrency food chain. It’s the original gangster. It’s a household name. It’s also obviously not the only digital currency out there.
Should you stick to Bitcoin as the denomination that everybody knows? Are you better off buying every crypto outside of Bitcoin? Let’s take a look at both sides of the argument.
Nothing like the original
Jennifer Saibil: As cryptocurrency expands and some tokens border on exclusively speculative, it’s helpful to remember that there is a token that has all the makings of a real, usable currency and has truly transformed digital currency. That, of course, is Bitcoin. Bitcoin’s mission as a digital cryptocurrency is deceptively simple; there’s none of the bells and whistles of some of the newer cryptos that aim to deliver every possible solution under the sun to end your financial, educational, and even medical woes. Bitcoin by its nature is a store of value, like the dollar, and like other global currencies that allow you to buy and sell what you need.
Certainly, Bitcoin’s history gives it an edge in any comparison. It’s been around the longest, with a first-mover’s lead in the crypto space. With a market cap nearing $1 trillion, many people have poured money into the platform both for real usage and as an investment. That alone gives it stability, since any currency only has value in the value that users assign it.
That leads to the next advantage, which is probably the most compelling. And that’s its acceptance in the real world. It’s accepted as payment through coffee chain Starbucks (NASDAQ:SBUX) and throughout PayPal‘s (NASDAQ:PYPL) huge network, and not only can it can be traded on PayPal’s app, but it’s also the only cryptocurrency available to trade on Block‘s (NYSE:SQ) (formerly Square’s) Cash App. Block’s Jack Dorsey has come out as a huge Bitcoin enthusiast, seeing it as the potential for a native internet currency, and has bought up Bitcoin for Block while shunning any other crypto token.
Growth has slowed down, and Bitcoin’s price is up about 150% this year. That trails many of the fastest-growing cryptocurrencies by a huge expanse, but the trade-off is decreased risk and real value. Investors may want to allocate a small amount of speculative contributions to benefit from other cryptocurrency’s growth potential; after all, you only needed to invest about $2 last year to become a millionaire from Shiba Inu‘s (CRYPTO:SHIB) rise. But if you had to choose between Bitcoin and every other cryptocurrency, you’re way …….