Bitcoin, the first cryptocurrency, was launched in 2009 by a user or users known as Satoshi Nakamoto. At the time, one Bitcoin was worth $0.0009. Since then, it has gone on to reach an all-time high of more than $70,000 and hundreds of alternative cryptocurrencies have been launched on similar blockchain technology.
Some cryptocurrencies are used solely as a means of holding and transferring value. Others are connected to financial ledgers, apps, and a host of other applications. Users need to use an exchange to buy cryptocurrencies with fiat, or traditional currency, and then require a wallet to hold their cryptocurrency.
Its value can increase or decrease significantly, in a short space of time, leading to some governments and financial institutions warning against investment in the likes of Bitcoin. But, the market retains a lot of interest: reports of investors making billions of dollars after becoming early adopters in certain cryptos have led to an influx of money.
While some cryptocurrencies are popular throughout the world, certain coins are more popular in some regions. Below, we look at the UK’s 3 most popular cryptos and give some history and insight into their rise.
3. Dogecoin
Dogecoin launched in 2013 and was started as a joke by two software engineers. The pair registered a domain based on the doge meme that was doing the rounds on social media at the time and used a Shiba Inu Japanese dog breed as the coin’s logo. They used Litecoin’s open-source blockchain technology to create the crypto which was marketed as being “favoured by Shiba Inus worldwide”.
But, while Dogecoin started as a joke, it became an Internet sensation. It was popularized on sites like Reddit and when X and Tesla owner, Elon Musk, jumped on the bandwagon, its popularity rocketed even further. In the first few months of 2021, its price rose more than 6,000%.
As well as making some early investors very rich, Dogecoin has found some genuine applications. It is used as a means of tipping writers and content creators on the Reddit website. Additionally, Doge casino websites enable players to deposit funds and wager using cryptocurrency, which offers benefits such as fast payment times, and greater anonymity and accessibility when gambling online.
Beyond online casino games, it is accepted by the Dallas Mavericks, SpaceX, Tesla, and NewEgg among an increasingly long list of well-known businesses. Dogecoin has a global market cap of $19.91 billion. It is only the fourth most popular crypto in the world, with Solana being more popular, but not in the UK. In the UK, 21% of people who have purchased cryptocurrencies have bought some Dogecoin.
2. Ethereum
Dogecoin’s inclusion as one of the most popular cryptocurrencies in the UK might come as a surprise to those who remember it as a meme joke cryptocurrency. But, Ethereum’s popularity shouldn’t surprise anyone. Like Dogecoin, Ethereum was launched in 2013, by programmer Vitalik Buterin. It became available in 2015 and has undergone several significant changes in its roughly ten years of history.
Ether, the name of Ethereum’s cryptocurrency, traded at around $2 in its early days but reached a high of more than $4,500. Today, one of its most common uses is to buy cryptocurrencies in their presale stage. NordVPN, Shopify, and Twitch are some of the big names that will accept payments in Ether.
Ethereum is currently the world’s second most popular cryptocurrency with a market cap of approximately $385 billion. Around a third of all UK cryptocurrency investors have bought Ethereum at some point in their crypto investment journey.
1. Bitcoin
Ethereum’s $385 billion market cap is dwarfed by that of Bitcoin, which has a capitalization of $1.25 trillion. Its rises and falls have been very well documented.
The Bitcoin boom of 2013, when its price topped $1,000 for the first time brought it to the attention of mainstream media, and so too did its subsequent crash to less than $200 in 2015. In 2017, much of the investment world watched on as Bitcoin tried to top $20,000, ultimately falling short at $19,783.06. By March 2020, it was worth only $6,000.
The recent launch of Bitcoin-based Exchange Traded Funds (ETFs) has helped push Bitcoin towards mainstream adoption and has given it greater credence in the financial world, although some still balk at the idea of a currency that they say has no intrinsic value.
Bitcoin’s history is shrouded in secrecy and mystery. The concept was outlined and the cryptocurrency was created by a person or persons with the pseudonym Satoshi Nakamoto. Nakamoto’s real identity is not publicly known, and there have been numerous cases of people laying claim to being the Bitcoin founder. So far, none have been confirmed, and the world may never know who this mysterious figure is.
Although consumers cannot walk into shops and buy their groceries with any cryptocurrency, yet, Bitcoin is the one that is most widely accepted. It is possible to pay for online education, book flights and holidays, gamble online, and buy most types of goods online using Bitcoin. It is also the most widely traded despite there being a finite number of BTC that will ever be available.
Nearly half (47%) of UK crypto investors have invested in Bitcoin at some point, although this figure is buoyed by the fact that Bitcoin is the most easily purchased and is often used to trade for other cryptos. It is estimated that 1.3 million people in the UK own some Bitcoin. Its value means that most holders own a fraction of one Bitcoin, rather than multiple Bitcoins.
Conclusion: The UK Cryptocurrency Market
Approximately 1 in 10 Brits have invested in cryptocurrency, but more than 70% say they will never buy any. The most popular exchanges available to UK investors are Binance, Coinbase, and eToro. As Bitcoin-based ETFs are launched and larger institutions pay more attention to cryptocurrency, interest will likely continue to increase.
Coins will rise and fall, although as most prices are tied to Bitcoin’s performance, it is likely to remain the top dog at least for the foreseeable future. And their size and popularity mean that Ethereum and Dogecoin are likely to continue to offer popular alternatives.
