Bitcoin (BTC) is one of the first cryptocurrencies to rise to popularity. Invented in 2008, it is now the largest cryptocurrency by market share. As of June 2017, BTC has a market cap of nearly $40 billion. The only other cryptocurrency to come close to this is Ethereum.
As a cryptocurrency, Bitcoin is a store of value that is Altcoins becoming more and more generally accepted. Online stores and Coinbase eCommerce businesses are becoming more likely to accept BTC for payment. There are also brick-and-mortar stores that have taken to accepting cryptocurrency.
As more people accept BTC as an accepted form of payment, its value increases. There is a fixed supply of Bitcoin in the market. In fact, the blockchain network and protocols that support BTC state that there can only ever be 21 million BTC in existence. It is expected that all available Bitcoin will circulate into the market by 2140. Because of this fixed nature, Bitcoin’s value is heavily affected by demand.
Because of the growing popularity of BTC, several new cryptocurrencies have been created to attempt to penetrate the market. BTC’s strongest competitor is Ethereum, followed by other cryptocurrencies known as alternative coins, or Altcoins.
We hope you’ve enjoyed reading CFI’s guide to Bitcoin. To learn more about financial markets, check out the following CFI resources.