Crypto Bull Market: Here’s the Best Digital Asset to Buy, and It’s Not Even Close

After losing nearly two-thirds of its value in 2022, the cryptocurrency market have received approx. 36% so far this year (as of the morning of February 27). With the change of calendar, investors seem to be warming up to the asset class again.

According to coinmarketcap.com, there are currently over 22,000 different tokens out there. But in my opinion, only one of them rules. In the middle cryptocurrency bull markethere’s why Bitcoin (BTC -0.15%) remains best digital asset to buy. And it’s not even close.

What about the other tokens?

There is no doubt that other popular crypto networks out there, such as Dogecoin and Shiba Inu, has skyrocketed in a short time and made some lucky people very wealthy. The problem, however, is that these dog-inspired meme tokens lack any real tools. They are mainly used as a tool for risky financial speculation.

Then there are the more promising blockchains, which Ethereum, Cardanoand Solana. All of these smart contract-enabled cryptocurrencies try to solve various problems, but most importantly, they can disrupt entire industries by removing costly and inefficient middlemen. With decentralized financial protocols, saving and lending is a main goal.

However, I’m not convinced yet. These projects have security and network problems, can become increasingly centralized because of their proof of effort consensus mechanisms, have complex and often delayed technical development pipelines, and are controlled by small groups of people. So far, the progress (or lack thereof) has not been anything to write home about.

Bitcoin has compelling features

With a brief explanation of why I’m not too interested in any other cryptocurrency out of the way, let’s turn our attention to Bitcoin. It’s the oldest cryptocurrency at 14 years old, and the longer Bitcoin stays relevant and survives, the more likely it is to go nowhere.

I think Bitcoin’s boring nature, or its simplicity and lack of complicated features, is actually an advantage. Also, Bitcoin is not controlled by one person or a small group of people who can change the fixed eventual token supply of 21 million. This quality cannot be underestimated.

But most importantly, I think Bitcoin is helping to solve two incredibly massive problems facing our world today. First, and more directly, Bitcoin tries to fix money. We have seen governments continue to run large budget deficits and major central banks pump money into economies for most of the last 15 years. Although interest rates have been on the rise in the US, as the nation’s debt burden continues to soar, it will only be a matter of time before the Federal Reserve reverses course. And the result could be stubborn inflation that is above the target of 2%.

Having a place to store wealth that is not controlled and manipulated by politicians is one of Bitcoin’s purposes. And if we zoom out, it’s hard to find a bigger total addressable market than money itself.

In addition, and in an indirect way, Bitcoin can help steer the world towards sustainable and abundant energy. Many naysayers point to the network’s proof-of-work mining system and its energy use as a major burden. But the reality is that Bitcoin mining can be set up anywhere, providing a way to monetize excess energy that is often wasted. In addition, this can actually stimulate increased investment in clean energy because there will always be a use for it.

Bitcoin’s potential is that one day it will not just be a sound version of money, but that it will result in abundant energy for the world. These are undoubtedly two of the most important problems we face.

Positive price action

At its 2022 low below $15,800 in November, Bitcoin was 76% off its record. But so far in 2023, the world’s top crypto has risen 41%. And while it’s up 139% over the past five years, the recent price action could be the beginning of a higher positive uptrend for Bitcoin.

Thanks to a key event, called a halving, the reward that miners receive for processing transactions and securing the network is halved approximately every four years. The next halving is expected to happen in April 2024. Bitcoin’s price usually marches higher in the period before and after this important event. This means that now might be a good time to get bullish on Bitcoin.