The short and easy answer to this question is Bitcoin. Since cryptocurrency is like any other currency that we use in our daily lives, it is only natural that the value of the coins fluctuates daily. Meaning, that the value of these coins is not the same every day. The values mentioned in this article are stated on the 17th of August, 2021, so keep in mind that these values are not fixed or stable values by any means. These values aren’t even the same throughout the day, they can change, and change in fact, even by every passing minute. To find out the real-time accurate values of each cryptocurrency visit a cryptocurrency monitoring site.
Bitcoin is the most expensive cryptocurrency out of all the existing crypto coins out there. Today, on the 17th of August 2021 at 11:11 pm one Bitcoin’s price is 45,133.52 USD.
Why is Bitcoin so expensive?
We have to understand a simple fact about cryptocurrencies like Bitcoin: the price isn’t influenced by the regular reasons as normal, government-made, and bank-issued bills would.
Cryptocurrencies don’t have a bank and government behind them, supporting them, so the typical factors do not apply to them.
However, there are several causes behind the price of Bitcoin:
- The supply and demand for Bitcoin
- The production cost of Bitcoin through the mining process
- Rewards issued to Bitcoin Miners for verifying transactions to the blockchain
- Number of competing cryptocurrencies
- Internal Governance
The calculation of Bitcoin’s value comes together from a couple of factors: it mostly depends on its supply and demand market for it. Besides the mentioned main factors the value also depends on the alternatives for Bitcoin, the availability of Bitcoin, and rewards for mining Bitcoin.
Bitcoin is the most expensive cryptocurrency out there, but how did it get here and why is Bitcoin the most expensive one? First of all, the demand for Bitcoin increases as it reaches its maximum limit! The limited supply and increased demand for Bitcoin increase the price as well.
Second of all, more and more institutions and agencies accept Bitcoin as a form of payment, and more and more people and even institutions are investing in Bitcoin. This makes Bitcoin a sought-after medium of exchange and increases its use among customers.
Bitcoin is a relatively safe cryptocurrency (relatively meaning, as safe as it can be as an online asset), if you’d like to know more about cryptocurrency safety read our article about cryptocurrency safety here.
Another aspect of Bitcoin, and why it is so expensive and a preferred medium of exchange, is because it doesn’t have to be obtained as a whole. In other words, just like fiat currencies, Bitcoin is divisible, you do not have to buy a whole one to get some.
Bitcoin was the first cryptocurrency ever created, if you are curious about the origins, check out our article about the beginnings of cryptocurrency. Being the first-ever cryptocurrency in history, time has allowed Bitcoin to seek popularity and reach its potential of being the most expensive cryptocurrency today. Will Bitcoin remain on top or will inflation rates take its crown? Time can only tell, but until then, follow us to find out more.