1. Bitcoin Has Been Able To Leverage Its First-Mover Advantage

Officially launched on January 3, 2009, by Satoshi Nakamoto, Bitcoin is the first successful implementation of a cryptocurrency based on the Blockchain concept.

Bitcoin takes full advantage of the first-mover advantage.

Bitcoin is a true revolution that has given birth to a whole industry in its own right: that of cryptocurrencies.

By being the first in this segment that it has created itself, Bitcoin necessarily has a significant advantage over its competitors. Over the past 11 years, this advantage has never diminished.

On the contrary, Bitcoin has continued to widen the gap over its competitors and more and more users are coming on board.

The success of Bitcoin for more than 11 years reinforces users’ confidence in the security of Bitcoin and its future.

Due to its ever-increasing number of users compared to the number of users of other cryptocurrencies, Bitcoin also benefits from the so-called network effect. This effect is also known as Metcalfe’s Law.

This theoretical and empirical law was enunciated by Robert Metcalfe. It stipulates that the utility of a network is proportional to the square of the number of its users.

This law would apply under the assumption of homogeneity of the nodes of the network, which may consist of agents or objects.

In concrete terms, the more Bitcoin users there are, the more useful the Bitcoin network becomes squared.

As this network utility increases, new users will have a greater interest in using Bitcoin when they enter the world of cryptocurrencies.

It is a virtuous circle that benefits Bitcoin to the full.

When the general public thinks of Blockchain or cryptocurrencies, they immediately think of Bitcoin.

When a person wants to get into cryptocurrency world, he will necessarily exchange his fiat currency into Bitcoin.

As a result, Bitcoin is constantly seeing much more new money coming in than its competitors, which only reinforces its dominance in the market, which has risen to over 65% in 2019.

With Bitcoin’s third Halving scheduled for May 2020, it is highly likely that Bitcoin’s market dominance will even return to well above 70%.

Bitcoin has been able to leverage its first-mover advantage over the past decade. Now, the lead that this has given Bitcoin seems almost unattainable for its competitors.