It all started with Bitcoin, and the first cryptocurrency is still going strong.
Cryptocurrencies date back to 2009, when an anonymous developer (or possibly developers) using the pseudonym Satoshi Nakamoto launched Bitcoin (BTC 1.10%). Technology has advanced over time, as it tends to do, and there are now literally millions of cryptocurrencies, most of which significantly outperform Bitcoin when it comes to of transaction speeds and costs.
Despite that, Bitcoin is still worth knowing about for investors. It’s arguably the most important cryptocurrency, for one simple reason.
The crypto market as a whole is worth $3.9 trillion (as of Aug. 26). Bitcoin is responsible for 56% of that total value, with a market cap of $2.2 trillion. Bitcoin’s dominance has fluctuated — over the last five years, it has made up anywhere from about 35% to 70% of the crypto market — but it has always been the market leader.
No other cryptocurrency has come close to beating Bitcoin. The second-largest is Ethereum, which is worth approximately $550 billion todfay, and every other coin is worth under $200 billion.
Bitcoin isn’t the only good crypto investment, but it has the longest track record of success and has bounced back from several bear markets. It was also the first cryptocurrency to receive spot ETF approval from the Securities and Exchange Commission (SEC) and the first to become popular as a strategic asset in corporate treasuries, both of which have led to more inflows.
As a crypto investor, it can be tempting to focus on altcoins — cryptocurrencies other than Bitcoin — because they have more room to grow. But obvious investments can still be the correct decision sometimes.
Even though Bitcoin may not be the most exciting buy, it has outperformed the major stock market indexes and most cryptocurrencies over the years. If you invest in crypto, Bitcoin is worth having in your portfolio.
