Bitcoin success means celebrations are underway because Bitcoin managed to top its 2017 record of $19,781.21 by attaining a $19,808 in the day. The coin has been showing a lot of bullish momentum, leaving many excited to reap their profits. It is no surprise that Bitcoin, 12 years in, is regarded as the leading crypto player.
While investors celebrate Bitcoins’ continued success, other crypto coin companies may not be gleeful as Bitcoin’s success does not benefit them.
Bitcoin one day chart
Looking at the graph, it is clear that Bitcoin managed to surpass investors’ expectations. By 14:00 pm GMT BTC was operating outside the Bollinger Bands higher price expectation area.
Between 14:00 pm GMT and 15:00 pm GMT, the confetti was at the ready as Bitcoin managed to hit a price high of $19,808. Let’s take a look at the impact Bitcoins’ success had on other coins.
How Bitcoins success is impacting other coins
Bitcoin is linked with all crypto coins simply because it was the first coin to come out. The only reason other currencies exist is because of the reputation of Bitcoin.
The other coins have expanded on what they think works for Bitcoin and found their niche to take on to ensure that they stand out. Despite how different some of the crypto coins are, their reputation is dependent on Bitcoins.
As Bitcoin continues to increase in demand, the price will increase, but more users come with more responsibility. As more people begin to use Bitcoin and look into it, there will be more scrutiny around Bitcoin’s problems.
Bitcoin success means it must deal with its problems
Without a known founder for Bitcoin, there is uncertainty around how the coin can grow, but few areas must be sorted out regarding BTC.
High transaction cost
Bitcoins price rising comes with high transaction costs. The costs occur from exchanges and banks, which charge for people to trade their money.
As Bitcoins price is rising, these costs seem to be going up and up. Investors are looking for a good return on their profits, and if Bitcoins exchange prices continue to rise, this could make Bitcoin’s coin outweigh its benefits.
Bitcoins blockchain is over a decade old and in need of modifications. The consequence of Bitcoins old Blockchain is that so much energy is necessary to make transactions plausible.
What makes Bitcoin inefficient is the need for the ‘proof of work’ it uses to check transactions.
Still, if Bitcoin fails, it is likely that cryptocurrencies, in general, will not be in the public conversation.
Ethereum supplements Bitcoin because its Blockchain allows it to use smart contracts so people can use the system in a range of ways. With an emerging gig economy, Bitcoin is essential to be versatile and easily used across various platforms.
Not until recently was Bitcoin able to take advantage of Decentralised Finance fully but only via RSK’s virtual machine, allowing them to wrap the coin to be used in other platforms. If Bitcoin does not continue to advance in DeFi, it could eventually lose relevance.
It is likely that if Bitcoin does not modify soon, it will stop getting demand and publicity from people. A lack of advertising for Bitcoin would hurt all coins. Though the other crypto coins will rise, there is no way they will ever come close to Bitcoins’ groundbreaking records without Bitcoins’ help from media attention.
For the sake of all coins in the long run Bitcoins’ success must come with advancements too.