As the anticipation heated up for the price of Bitcoin to reach the six-figure mark, there were growing references from sources that seemed as though the achievement was never going to take place, however, it did. Bitcoin achieved this since the cryptocurrency market has experienced numerous lows and highs which most investors wished for. But regardless of all the energy surrounding this reaching of the $100,000 mark, it is quite shocking to learn that Bitcoin was not the best-performing currency that year. Bitcoin may have amassed a valuation of 100,000 dollars, but other cryptocurrencies showed massive growth that year and it goes on to show how competitive the space is.
The Milestone Mark of Bitcoin Reaching The $100,000 Disabled Praise And Drained Investors With Frustration
There was a period when Bitcoin was the only cryptocurrency that mattered and represented the potential that the entire blockchain ecosystem provided. For the sense of chronology back in 2017 was when Bitcoin hit its first big level of 20,000 dollars and soon after that, it was one peak after another with Bitcoin ranking as the highest currency throughout. A smart guy might think the story macerates there however, rather the first psychological mark of the currency ‘100,000’ was the one to be breached just a calendar year back. And when that took place the market had some sense of buzz surrounding it finding both seasoned and novice traders who wanted to invest.
Bitcoin has had an unassailable increase in value throughout its history, thanks to various angles that include steadily growing investment from institutions, the move towards adoption of cryptocurrency in global economics, and finally, the inflation hedge that Bitcoin appeals to. During a time, when the global economy is unreliable, Bitcoin’s appeal seems to be unmatched. However, in 2023, Bitcoin impressed when it marked a gain of X percent only to be bettered by a slew of its contemporaries but the marking of that gain now seems overshadowed by the failing offer of Bitcoin over the past year All the other cryptocurrencies have remarkably outperformed Bitcoin and altcoins have been on fire.
Altcoins have, in a sense, easily surpassed Bitcoin in Convexity of the returns.
Ethereum The coin to start. While Bitcoin boasted of an athletic price range and enormous capitalization, its 2024 boom saw a plethora of multiple altcoins splurge as well. Some altcoins leaped to extreme leaps in their demand and glided above their Bitcoin counterparts some of the most taped tomatoes including vegetables onuker. Furthermore, Ethereum has successfully established a wide range of decentralized finance (DeFi) applications and continues to be unrivaled in the smart contract space.
Yet, some other altcoins also gained momentum. The price of Solana which is constantly referred to as an improved version of Ethereum in terms of speed and scalability, surged due to more developers and dApps coming on board. Also, Chainlink, which provides a decentralized oracle network, had a good year, as its use cases became more in different areas, including, but not limited to, decentralized insurance, prediction markets, and supply chain management. Though Bitcoin’s value of a single unit remains astounding, many of these altcoins surged in growth percentage beyond Bitcoin during the altcoin season.
The reason for Bitcoin not being the highest performer
Looking at Bitcoin in the year 2024, one would be impressed by its price, but for some reason, it’s some valuation of altcoins that outshined its growth. Certain reasons can be ascribed to this change in performance. One out of the many is the maturity phase of Bitcoin. Being the biggest crypto by market cap, bitcoin has almost become a kind of a ‘safe asset’ in this instance. Some institutional players would prefer an asset of that nature that has less volatility and thus moves more predictably. While this institutional adoption has helped Bitcoin cross $100,000, its price growth didn’t have the same momentum as smaller and riskier altcoins.
In addition, it should be noted that Bitcoin did not develop and did not receive wider application than other cryptocurrencies. For example, Ethereum has more prospects for use in DeFi spaces and NFTs due to the scalability and greener benefits of the proof of stake mechanism which was adopted with the emergence of Ethereum 2.0. In contrast, Solana has faster processing speeds giving it practical applications that developers and businesses are interested in. As a whole, bitcoin is still relatively marginalized as a reserve asset with no wider use than what most of these altcoins can provide.
Segments of the retail vs institutional vs Advocations Special interest Investment Trusts
Indeed one of the main factors that let the currency grow unfettered to $100,000 was that bitcoin started to receive a great deal of institutional support. The likes of large-scale financial institutions and corporations have started to consider investing in Bitcoin as part of their diversified portfolio as it tends to be inflation-hedged as well as a store of value on the lines of gold. With the influx of institutional clients, it has been beneficial for the price of Bitcoin as these clients have provided certainty and confidence in the marketplace which has allowed bitcoin price growth.
A considerable contribution to the increase of Bitcoin’s prices was the retail acceptance of it as well. More people were able to purchase, sell, and trade the asset as a result of Twitter exposure, celebrity endorsements, and a growing number of crypto-friendly services. Bitcoin’s history as the first fully functional decentralized digital currency meant that it was the first place for many to start exploring the world of virtual currencies.
But, although these circumstances helped Bitcoin to climb on the charts, they also bolstered its price level. This means that during the entire year of 2024, Bitcoin was not the coin with the biggest volatility. With easy capital sources turning towards altcoins, higher returns compelled the investors to take more risks and invest in low-capitalization projects with novel ideas. As a result of this re-prioritization, on a percentage basis, it was altcoins that gained more than bitcoin.
The Emergence of New Technologies
The increase in technological advancements regarding cryptocurrency and blockchain technology once more beat Bitcoin as the main performer in the ranking in 2024. The combination of artificial intelligence (AI) with blockchain technology alongside gradual improvements in decentralized applications (dApps) created conditions for altcoins to thrive.
Few AI and machine learning-based cryptocurrencies managed to stand out thanks to the rapid growth they attained. Further, improvements in interoperability between various blockchain networks assisted marginalized altcoins in making some upward movement. These events, together with new projects, drew in both investors and developers, leaving Bitcoin’s grip on the market slackened.
The Future of Bitcoin
While it is true that Bitcoin was not the best-performing asset in 2024, I would restate that viewpoint that the long-term price forecast for the cryptocurrency is quite positive. Many people believe that the volatility of bitcoins is due to their huge market capitalization. What is even more incredible and shocking is that nearly all the predictions regarding Bitcoin come true. The second most significant aspect is how Bitcoin came into being. It would be unwise to ignore the fact that Bitcoin is not the first cryptocurrency, but the first decentralized Bitcoin.
Furthermore, because Bitcoin is such a well-known brand, has widespread l eather of Bitcoin growth and the network is very secure, this means that Bitcoin is likely to remain the first and most preferred asset for those that need something that can last in such a volatile environment. However, it’s only getting clearer hereon that Bitcoin must evolve to stay relevant in the future – quite frankly, the rapidly changing world of cryptocurrency.
Conclusion
While the prediction made by many analysts that the dollar value of Bitcoin will reach an all-time high in 2024 is pleasantly astonishing, it falls short of being the best-performing cryptocurrency of the year. Other cryptocurrencies outshone Bitcoin both in terms of usefulness as well as growth. In the year 2024, the percentage of profits made from altcoins such as Ethereum, Solana, and Chainlink was greater than overall Bitcoin profits proving that the diversity and competition within the cryptocurrency market is increasing in geometric proportions. As new technologies and cryptocurrencies will make their way, a test for Bitcoin will ring a bell but one thing that will always remain etched in people’s minds is Bitcoin being the first-ever cryptocurrency.
This writer would not be amiss in attributing the wild rise that we experienced in the late 2021 pandemic period when now more than ever last mile-consumers had the most impetus to survive, and so naturally it made Bitcoin reach more than $65000 at one time. Not only this but millions of consumers sought safe havens from hyperinflation and harsh global recession, and strongly adamantly shifted to the most volatile yet easier-to-trade token, Bitcoin. In entirety, the statement made before can be backed by induction that all other tokens besides Bitcoin at one point became the primary focus of interest.
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