A total domination scenario: Bitcoin (BTC)

A total domination scenario: Bitcoin (BTC) - what are bitcoinsBitcoin holds a significant share of the cryptocurrency market share and is the largest cryptocurrency market capitalization. Numerous events and updates will continue to ensure that Bitcoin continues its dominance at the top.

The Bitcoin Taproot update, as well as the Lightning Network expansion, will ensure that Bitcoin and Ethereum remain separate. Bitcoin holds nearly half of the market share and its market cap is $ 678 billion.

Bitcoin is the first thing that comes to mind when the term "cryptocurrency" is mentioned. Bitcoin is not only the first cryptocurrency to be discovered, it also has the highest market capitalization. 

Bitcoin holds a 46,06% market share and Ethereum has a 17,59% market Ethereum is the closest competitor with a market cap of $ 678 billion.

All indications indicate that Bitcoin continues its dominance, with the Taproot update, the growth of the Lightning Network and the influx of institutional funds.

Network updates

Bitcoin saw a bullish year in 2021 as both institutional and retail investors scrambled to get a piece. Major technological advances have allowed Bitcoin to maintain its position as the most popular cryptocurrency, in addition to the money flowing through it.

Taproot Upgrade is the most important innovation in bitcoin history. This update will bring Bitcoin into the era of smart contracts and equip it with the capabilities it needs to compete with other blockchains such as Ethereum.

The update will not only improve the functionality of the smart contract but also increase privacy using Schnorr signatures.

These combined features will make the network attractive to investors looking forward to the November update. For those wishing to take advantage of this moment and start investing, they can do it with a reliable platform like Bitcoin system

The Lightning Network has also made significant progress. The total capacity of the network exceeded 1.500 BTC. Likewise, the number of nodes has risen to more than 21.000.

Big money is coming

The inflow of institutional money was the key to Bitcoin's success in 2021. The year started with a bang and culminated in February, when Tesla (NASDAQ TSLA) bought bitcoin for $ 1,5 billion.

Others followed suit, including MicroStrategy and Morgan Stanley (NYSE: MS), as well as JP Morgan who invested in bitcoin. As of this writing, Bitcoin whales have taken advantage of the current low prices to increase their holdings.

Miners are currently making insane efforts to reduce the energy required to mine bitcoin. Institutional investors will continue to flock to this asset as further progress is made.

After China's crackdown, Bitcoin's hashrate plummeted to new lows. Due to the drop in hashrate, bitcoin mining difficulties could be reduced by 25%.

Comparison between Ethereum and Bitcoin

Ethereum is Bitcoin's most formidable competitor. Ethereum is the only cryptocurrency that can turn Bitcoin into an altcoin. Bitcoin holds 46,06% and Ethereum 17,59% of the total cryptocurrency market share.

The year started trading at $ 737. At the time of writing, Ethereum is trading at $ 22.220. This represents a 220% increase since the beginning of the year. Bitcoin started 2021 at $ 28.000 and reached $ 64.000 in an incredible price run.

With the smart contract features and increased privacy afforded by the Taproot update, Bitcoin is expected to continue to dominate all other cryptocurrencies.