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The bitcoin price history is like that of no other currency. For something that started trading at a value of $0.0008, no one would have thought it would climb up to the value it holds now. As it continues to get widespread adoption across the globe and as the go-for choice for money transfer, the price continues to rise steadily. 

Interestingly, it has maintained the same pattern even after the launch of altcoins. Bitcoin, just like other currencies like gold and fiat, is considered successful because it is highly portable, durable, scarce, and decentralized. 

Bitcoin is performing exceptionally well compared to altcoins and even fiat currency. Suppose you are wondering why investors tend to caution altcoins while trading and not putting too much faith. The article will help you understand what makes bitcoin attractive and why its price will remain high. 

Why investors caution altcoin whereas the value of BTC remains high

1. Utility

The crypto’s utility outside the cryptocurrency space and within is among the things that make it so valuable. It uses blockchain technology and is decentralized, with the traders using it not needing to trust each other has enhanced its utility.

It has a more flexible utility due to decentralization which maintains its value above the fiat currency. The fact that bitcoin is also outperforming fiat is a blow for other currencies, which is why you should caution altcoin.

2. Scarcity

Compared to gold and money, it is scarcer. When it comes to currency, value comes with scarcity. There are strict regulations for the mining of the coin, which ensures that the supply is controlled. For instance, its supply is capped at 21 million. So far, the supply stands at 18 million. 

Mining is cut down by half every four years. Scarcity only increases with time, and this means that its price will remain at an all-time high. Whether the mining rules will be changed, no one knows, but time will tell. The rules do not necessarily apply to other cryptocurrencies making traders caution altcoin. 

3. It is hard to counterfeit

The fact that money can be counterfeited is why the value of money continues to drop. Counterfeiting leads to more money circulating in the society, which causes inflation. 
Artificially increasing the supply of money in the society hurts the economy, as it does reduce not only its acceptability but also the value of real money.

Crypto mining is complex, and the fact that it is decentralized makes it extremely difficult to counterfeit. The only way this can be possible is if double-spend is done. However, this would be challenging because a small group of miners controls more than half of the network.

If you try to transfer the same coin to two separate transactions, it will take a second for the miners to falsify the records. An overwhelming amount of resources and time would be required for anyone to counterfeit it successfully. 

This has made it possible for the network to maintain the supply so that it causes an increase in value and no drop at any point. Worth noting, however, is that you should caution altcoins as some are fake. Be on the watch out for crypto market fraud.

4. Divisibility

Compared to other currencies, this one is highly divisible. As much as its supply in the economy is way lower than the fiat currency, the 21 million supply can be divided up to 8 decimal points. It is the very divisibility that makes it possible to make the currency scarce. 

Divisibility has allowed its distribution across the globe and millions of people to use it for transactions. Its widespread use is also a contributing factor to the high value.

5. Durability

Durability is among Aristotle’s characteristics of good money. Money should be able to stand the test of time and even the elements. The dollar note gets destroyed when exposed to water for a long time; it can also get torn or damaged by fire.

Crypto is protected from physical harm, which makes it valuable. This is among the explanations of gold having more value than fiat: it is hard to destroy. Digital currency cannot be destroyed like others can be. However, it can still get stolen. 

However, as much as it can be stolen, this cannot affect its value as the supply will remain the same. 
These are some of the characteristics that make the coin valuable.

Why Bitcoin’s price will continue to go up

For a long time, the coin has maintained an all-time high. Here are the reasons why the price will go up

1. Hype from the media

Hype and media coverage often cause panic purchases and sales. The media has been giving it a lot of attention, which has contributed to its high price. As the buzz continues, the pressure to purchase it will increase. 

Interest and speculations from the masses will contribute significantly to an upward curve in its piece. Traders caution altcoins because most of them don’t get attention from the media and masses.

2. Surpassing the all-time high

The first time its value surpassed $1 trillion, its price jumped. The same has happened this year, and the prices went high. It is worth noting that any time the currency surpasses its all-time high, a positive purchasing momentum is created, and its value goes high. 

3. Mass adoption

This is yet another factor that will lead to the rise in price. Media coverage and awareness of the crypto market have contributed to its acceptability. More investors will be buying it, and people will be using it for transactions. On the other hand, people caution altcoins, hence less likely to be used in transactions.

When a significant financial institution accepts it, the speculation will be positive, and people will be more willing to invest in it. When major players adopt it, the masses will do too, and its price will go up.

Traders caution altcoins and have lost faith in fiat

People are losing trust in fiat currency, which will positively impact the price of bitcoin. In the same way, they caution altcoins, creating a buzz around bitcoin, which positively impacts the price. This is mostly due to inflation, and they are increasingly looking for alternatives to store value. This has become the best alternative due to its decentralization, meaning less government control and supply shortage.

Bitcoin will continue to dominate the crypto market due to its mass acceptance compared to altcoins. Amazingly, it possesses all the characteristics of good money like divisibility, durability, scarcity, and utility, and for this, its price will continue to stay up. 

Just like most other currencies, the price may drop, especially after it surpasses an all-time high. As much as the value is guaranteed, you might want to stay on the lookout for fluctuations because they happen.

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