Bitcoin (CRYPTO: BTC) is, by far, the world's most valuable cryptocurrency, currently accounting for more than 55% of the total market capitalization of the entire crypto market. For individual and institutional investors, Bitcoin is typically the first cryptocurrency added to a portfolio, and for good reason. Between 2011 and 2021, Bitcoin was the best-performing asset in the world -- it wasn't even close.

Judging by that type of market-beating performance, you might assume Bitcoin shares a characteristic of all top-performing companies: an economic moat. In the investment world, an economic moat describes a sustainable competitive advantage that allows a company to outperform its rivals for long periods. The problem is that Bitcoin's economic moat appears to be eroding, not widening.

According to investors such as Warren Buffett, there are several types of economic moats, and each acts as a source of long-term competitive advantage. The most common moats are those provided by intangible assets, such as a popular brand. The stronger the brand, the more it encourages customer loyalty and enables a company to charge premium prices for its products. Companies in this category include Nike and .

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Source Fool.com