Why is Bitcoin known as the king of currencies?

In the world of digital currency, Bitcoin is undoubtedly the brightest star and is known as the "King of Currency". This title is not accidental, but is determined by the unique value and influence it has demonstrated over the years of development. The success of Bitcoin lies not only in its technical foundation and market performance, but also in the financial revolution and future economic potential it represents. This article will analyze Bitcoin's characteristics, market performance and its position in the investment field from multiple angles to explore why Bitcoin is called the king of currency and whether it is the most worthwhile digital currency to invest in.

First of all, the birth of Bitcoin stems from the reflection and challenge of the traditional financial system. In 2009, a person with the pseudonym Satoshi Nakamoto proposed the concept of Bitcoin, aiming to create a decentralized currency that is free from the control of governments and banks. The core technology of Bitcoin, blockchain, ensures the transparency and security of transactions, allowing users to trade without the involvement of third parties. This decentralized feature makes Bitcoin free from the manipulation of any country or institution, making it a truly global currency.

In the early days of Bitcoin, its price was almost negligible, but over time, its value continued to rise. In 2010, the price of Bitcoin was only $0.003, and by 2021, its price had exceeded $60,000, an astonishing increase. This wave of growth has attracted the attention of a large number of investors, and many people have begun to regard Bitcoin as an emerging asset class. The value of Bitcoin lies not only in its scarcity (a total of 21 million), but also in its status as "digital gold." Many investors see Bitcoin as a safe haven against inflation and economic uncertainty, which makes it more attractive during times of economic turmoil.

However, despite Bitcoin's impressive performance in the investment field, its volatility also exposes investors to certain risks. Bitcoin's price fluctuates greatly, and may rise or fall by thousands of dollars in a short period of time. This instability makes some conservative investors stay away from it. In addition, the Bitcoin trading process is also somewhat complicated, and beginners may encounter technical barriers and security risks when investing. Therefore, although Bitcoin is widely recognized, whether it is suitable for every investor is still a question worth pondering.

Behind Bitcoin being called the "King of Currency", there are a series of technical and market factors at work. Bitcoin's blockchain technology not only ensures the security and transparency of transactions, but also provides a foundation for other digital currencies and decentralized applications. With the rise of smart contracts and decentralized finance (DeFi), Bitcoin, as the first cryptocurrency, has become increasingly influential. Many emerging digital currencies are learning from Bitcoin's success and trying to find their own foothold in this market.

In addition, Bitcoin's community and ecosystem also provide strong support for its development. Bitcoin holders and developers form a large community that actively promotes the application and popularization of Bitcoin. Whether in technology development, market promotion or education popularization, this community has demonstrated strong cohesion and innovative spirit. This community support not only enhances the credibility of Bitcoin, but also lays the foundation for its future development.

When considering investing in Bitcoin, investors need to comprehensively evaluate their risk tolerance and investment goals. For investors seeking high risk and high returns, Bitcoin is undoubtedly an option worthy of attention; and for those who hope to achieve asset preservation, Bitcoin can also be used as an important configuration item. Regardless of the investment strategy chosen, it is crucial to understand the market dynamics and technical characteristics of Bitcoin.

In the future development, the prospect of Bitcoin is still full of uncertainty. Although its status as the "king of currencies" has not been shaken for the time being, technological progress, policy supervision and market changes may have an impact on it. Especially in the context of the gradual clarification of the regulatory policies of governments on digital currencies, whether Bitcoin can continue to maintain its leading position still needs time to verify.

In general, Bitcoin is known as the "King of Currency" not only because of its technological innovation and market performance, but also because of the financial changes and future economic potential it represents. As the pioneer of digital currency, Bitcoin has played an irreplaceable role in promoting changes in the global financial system. In this era full of opportunities and challenges, investors need to maintain keen insight and carefully evaluate the investment value of Bitcoin and other digital currencies in order to seize opportunities in the ever-changing market.

The answer to whether Bitcoin is the most worthwhile digital currency to invest in is not set in stone. Each investor's situation and needs are different, and choosing an investment method and strategy that suits them is the most important thing. In this era of change, the future of digital currency is still full of hope, and Bitcoin, as a symbol of this era, will continue to shine on the future financial stage.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Why is Bitcoin called the king of coins? Is Bitcoin the most worthwhile digital currency to invest in? As the representative currency of the entire cryptocurrency industry, Bitcoin has always had a position and price that is unrivaled. I still remember that in June 2013, the market value of Bitcoin accounted for more than 95% of the entire digital currency market. With the development of blockchain and the entire digital currency industry, other currencies including Ethereum have also begun to exert their strength. Although they cannot shake Bitcoin's position as the leader, they are also constantly eroding its original share.
--As of September 11, 2017, Bitcoin's market share was approximately 47%, more than half of its peak.
Recently, the supervision of ICO in China has attracted the attention of almost everyone in the cryptocurrency circle. When the relevant departments urged domestic ICO projects to return and repurchase coins, it seems that there is not much supervision on Bitcoin and Ethereum. So some friends may ask: In the future, will the entire cryptocurrency circle only have a few currencies such as Bitcoin and Ethereum, and no other "miscellaneous" tokens will be needed?
The answer is of course no!
Why do we need tokens?
As we all know, blockchain projects are all open source.
Open source means that everyone can view the operation of the project and it is impossible to make profits through information asymmetry.
A project team often needs to operate and maintain through profit, so they choose to give a certain value to the issued tokens to reward the contributions made by relevant project participants. For example, in addition to its main payment function, Bitcoin can also be used as a miner's fee to reward miners who have contributed computing power to reach consensus (interestingly, the initial price of Bitcoin was calculated by dividing the electricity cost consumed by mining by the number of coins mined).
After making their own efforts and obtaining corresponding tokens, these token holders will be more motivated to maintain and improve the system so that it can be recognized by more people and become more valuable, and the value of their tokens will naturally rise.
In many ICO projects, the issuing team will often keep a portion of the tokens for themselves. On the one hand, it is used as funds to maintain the normal operation of the company, and on the other hand it also serves as an incentive: after all, if no one is interested in the project, these tokens will naturally have no value.
In addition to value functions, some tokens are also given the right to use the project. For example, when developing a blockchain project on Ethereum, a certain fee needs to be paid each time the blockchain service is used. This fee is not paid to the project party, but to the Ethereum miners who maintain the entire network. There is also the familiar cloud storage SC, whose tokens can be used to purchase network storage space.
Another example is GXS, the token of GXS. The GXS chain it developed is a public chain. Applications based on the GXS chain can be developed on it. The execution of such applications requires GXS as fuel. At the same time, holding GXS can obtain indirect benefits from the project's profits. Therefore, the token GXS belongs to both virtual goods and income certificates.
Why Bitcoin Can't Unify the Cryptocurrency Circle
Almost all blockchain projects are self-contained systems with their own rules and settings. If their most critical tokens are attached to Bitcoin or Ethereum, then their future value will depend entirely on Bitcoin or Ethereum, which in turn affects the value of their own projects.
The best example in reality is the establishment of the Bretton Woods system after World War II, which stipulated that the U.S. dollar was directly linked to gold, and the exchange rates between the legal currencies of other countries and the U.S. dollar were fixed, which meant that the prices of legal currencies of various countries were set by the United States alone.
--This was of course unfair, so the system was ended by the Nixon administration in 1971.
In addition, as described in the second part, different tokens have different usage functions (currency, usage voucher, income voucher, etc.), and it is difficult to perfectly measure them with just one currency. Let's take the real world as an example that is not very appropriate but easy to understand: even if the world abandons the legal currency of each country and uses RMB as the only currency, it is still impossible to use computers directly with RMB. You must use RMB to buy electricity and then start the computer. The RMB and electricity here can be simply compared to Bitcoin and Ethereum in digital currency.
Finally, the maximum number of Bitcoins is 21 million, and there is no possibility of additional issuance. If everyone uses Bitcoin as the only digital token, then as more projects are added, Bitcoin will become more and more dispersed and scarce, and then Bitcoin will be subdivided to the point where 8 decimal places are not enough. The following annoying scenarios may even occur:
"How much BTC should I pay you?"
"0.0000000000000000000233 BTC, thank you for your patronage"

Despite the many advantages of Bitcoin, competition is increasingly fierce in the digital currency market. Other digital currencies such as Ethereum, Ripple, and Litecoin have their own characteristics in terms of functions and application scenarios, attracting different types of investors. Ethereum has become the preferred platform for decentralized applications with its smart contract function; while Ripple focuses on cross-border payments and attempts to solve the pain points in the traditional financial system. The rise of these competitors has prompted Bitcoin to continue to innovate technology and adjust the market in order to maintain its leading position in the digital currency market.