You may have heard that bitcoin is a type of cryptocurrency or the opposite. If you’re confused, you’re not alone.
In recent years, the idea of a digital currency has become increasingly prominent in mainstream media. Millions of people have begun using digital currencies, such as bitcoin, but many are unclear about how they work.
It seems the confusion is around the difference between bitcoin vs. cryptocurrency. Bitcoin may be the first of many cryptocurrencies to hit the market, but it isn’t the only digital money today. There are thousands of cryptocurrencies, and it can be overwhelming to pinpoint where you should invest.
Yet, most people aren’t aware of the fact that there is a difference between bitcoin vs. cryptocurrency. Below are some differences you should know between cryptocurrency and bitcoin.
Cryptocurrency: More Than Just Bitcoin
What is bitcoin? What is cryptocurrency? Are they the same, or are they different? You can use bitcoin and cryptocurrency interchangeably, but there is a difference between them.
Bitcoin is a type of cryptocurrency, but cryptocurrency is more than just Bitcoin. Cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrency is not subject to government or financial institution control.
So is bitcoin cryptocurrency? Yes! Is all cryptocurrency bitcoin? No! Bitcoin is the most well-known, but there are many types of cryptocurrency, such as Ethereum, Litecoin, Polygon, and Ripple.
So, what’s the difference between bitcoin and cryptocurrency? Cryptocurrency is the umbrella term that includes all digital currencies, while bitcoin is just one type of cryptocurrency.
Bitcoin: The OG Crypto
Bitcoin, the original crypto, was invented in 2009. It was the first cryptocurrency not subject to government or financial institution control. They are often marketed on decentralized exchanges and can also be used to buy goods and services.
Bitcoin, as well as other cryptocurrencies, are subject to volatility due to their relatively new nature. Despite this volatility, Bitcoin has seen significant growth since its inception and is currently the largest cryptocurrency by market capitalization.
Being the original cryptocurrency, bitcoin directly affects all other cryptocurrencies, especially their value. The matic price went down, and all other cryptocurrencies’ prices followed when the bitcoin price went down.
Bitcoin is different from other cryptocurrencies in a few ways.
First, it is the most established and has the largest market cap. Second, Bitcoin is the most liquid cryptocurrency, meaning it can be bought and sold without problems. These factors make Bitcoin a more stable and trustworthy investment than other cryptocurrencies.
Know The Difference: Bitcoin Vs. Cryptocurrency
There is a difference between bitcoin vs. cryptocurrency, but it is not as large as some people make it out to be. Bitcoin is the original cryptocurrency and is still the most well-known and well-established.
Cryptocurrency is a broader term for all digital currencies, including bitcoin and others. For more information about cryptocurrencies, check out our other blog posts.