The cryptocurrency market keeps on entering into the bull stages over time, and it regains the investors’ trust. Sometimes, the whole cryptocurrency market is not stable, and therefore, people believe that withdrawing their investment is undoubtedly the right move to make. However, let us tell you that it will never remain permanent. The cryptocurrency market is famous worldwide because it has high fluctuations, and if you are scared of it, it is not made for you. You should not even invest your money into it if you think that a low profit is not beneficial in the cryptocurrency space. You need to make sure that you know about the cryptocurrency market fluctuations and then only invest in it.
Many investors in different corners of the world believe that they can invest in the alternatives of bitcoin, but they are not aware of the basics. Every investor who wants to make money from the cryptocurrency space must be very well aware of the essential thing: the dependency of the crypto space. Every Crypto coin in the world is dependent on the market leader, which is none other than the most popular crypto coin-bitcoin. Bitcoin is considered the leader of the cryptocurrency market, and every altcoin in the world is affected by its prices. Whenever there is a price movement in bitcoin, the altcoins also face fluctuations. There are several reasons behind it, and you should know about them.
There are four fundamental reasons why altcoins follow bitcoin, and we will describe them to you today.
- Bitcoin is the first crypto coin.
A fundamental reason why all the cryptos follow bitcoin prices in the market is that it was the first cryptocurrency to exist. Over the years, the weight on bitcoin’s shoulders has increased. Also, it is because bitcoin is considered the original cryptocurrency, and it is also the cement for the store of value of every coin. Due to the popularity of bitcoin, only other cryptocurrencies came into existence and therefore, the other women on its value to a large extent. No matter what anyone tells you, bitcoin is the one that made others famous and hence, it is the one that will become the mainstream before any other coin. It has made its way into the industry for other cryptocurrencies, and therefore, it will permanently affect the prices of other coins in the market on Bitcoin Prime
- Most of them are bitcoin clones.
The proliferation of bitcoin clones over the past few years is due to the increasing popularity of bitcoins and their value. You must have considered that the alternative coins in the market have got mainstream adoption just because bitcoin has increased its value. We can take an example of the LITECOIN using a copy of the bitcoin code to become a writer and a faster version of the original. Also, there are many other clothes in the market for bitcoins like bitcoin cash, bitcoin diamond, bitcoin gold and many more like this. Most of them want to become a better version of bitcoin, but, most of the time, they keep on following the lead of bitcoin itself.
- Bitcoin has the most secure network.
The primary mechanism on which the whole bitcoin network is working is proof of work. It makes sure that every cryptocurrency transaction you make is very secure and safe, and it is all because almost 18,000,000 miners are working all the time. The decentralised network on which bitcoin is working is Blockchain, and it provides a very safe mechanism for every person to use bitcoin. Blockchain technology offers a highly decentralised mechanism to work for bitcoin, and therefore, it is flawless and offers a high degree of security. Furthermore, the bitcoin payment system offers an ideal platform for others to copy the working mechanism of crypto.
- It is a reserve currency for the crypto space.
Bitcoin is considered the reserve currency in the cryptocurrency space because it has the highest value and acts as an inflation hedge for the crypto space. It is considered to be identified as the United States dollars in the stock market. Therefore, we can completely agree with the statement that other cryptocurrencies will keep going the bitcoin way for a very long period. No matter how hard the other crypto coins try, it would be difficult for them to surpass the popularity of bitcoin.