When it comes to cryptocurrency, there are a lot of different schools of thought. But one belief that has become increasingly popular in recent years is bitcoin maximalism. The term was first coined back in 2013 by then-Bitcoin developer Mike Hearn and simply put, it’s the idea that bitcoin is the only digital currency that matters, or will ever matter.
Bitcoin maximalists are a group of people who believe that Bitcoin will be the only cryptocurrency that will survive and thrive in the future. They argue that it is the most secure, reliable, and widely used digital currency and that all other cryptocurrencies are inferior.
However, there are plenty of reasons why this viewpoint is misguided and why Bitcoin maximalists may be wrong about the future of cryptocurrency
Why do Bitcoin maximalists believe what they believe?
There are several reasons why Bitcoin maximalists hold their beliefs. Firstly, they tend to view Bitcoin as the most secure and robust blockchain network available. They also believe that Bitcoin will eventually become the global reserve currency, displacing fiat currencies like the US dollar.
They see Bitcoin as the original cryptocurrency and believe that it has more proven staying power than any of the hundreds of altcoins (alternative coins) that have been created in recent years.
They very often point to the fact that Bitcoin has by far the largest market capitalization and ecosystem of any cryptocurrency. For example, there are more businesses accepting bitcoin than any other digital currency.
Many bitcoiners simply don’t trust anything else besides BTC because crypto itself is such a young industry and is full of scams. For these reasons among others, bitcoin maximalism has become a popular ideology in the cryptosphere.
The problem with Bitcoin
The problem with Bitcoin is that it's slow and expensive. Transactions can take hours or even days to confirm, and fees have been rising steadily over the past few years. This is because the amount of data that needs to be verified in each block is getting larger and larger, as more people use Bitcoin.
The solution to this problem was supposed to be Segwit (segregated witness), which would have moved some of the data off-chain. But Segwit has been delayed again and again, due largely to opposition from miners who stand to lose out on fees if it goes through.
Even if Segwit does eventually go through, it's not going to clear up all of Bitcoin's problems. And that's why we think other cryptocurrencies will start taking its place as the go-to choice for payments and transfers.
Why Bitcoin is not the only cryptocurrency that matters
Now, on the surface, bitcoin maximalism might not seem like such a bad thing. After all, Bitcoin does have a few major advantages over other digital currencies. For one, it’s been around for over 10 years now and has proven to be both durable and resilient. Unfortunately, one major reason why Bitcoin maximalists may be wrong about the future of cryptocurrency is because of the potential of altcoins.
The Potential of Altcoins
Many altcoins offer features that Bitcoin does not have, such as faster transaction speeds, privacy features, smart contracts, and more. These features could make them more attractive to users than Bitcoin if they can prove their safety and reliability.
Altcoins are not going away anytime soon. In fact, they're currently enjoying a huge surge in popularity, with more and more people interested in investing in them. Even if Bitcoin does become the dominant cryptocurrency (which is far from guaranteed), there's still a good chance that some altcoins will survive and thrive alongside it.
Furthermore, some altcoins are specifically designed for certain industries or use cases, which could make them more useful to people in those industries than Bitcoin. This could lead to an increase in the adoption and usage of these altcoins over time. There are plenty of other cryptocurrencies out there with unique features and advantages that could make them more attractive than Bitcoin in the future. Hive, for instance.
So don't write off altcoins just yet. They may surprise you by sticking around for a lot longer than you think.
The increasing competition
As cryptocurrencies become more popular, more companies are creating their own digital tokens or coins that offer unique features or advantages over existing ones. These new tokens often come with low transaction fees and better scalability solutions than Bitcoin has.
This increased competition could eventually lead to a situation where no single coin dominates the crypto market, as each one has its own strengths and weaknesses.
Conclusion
It is clear that Bitcoin maximalists may be wrong about the future of cryptocurrency due to both the potential of altcoins and the increasing competition from other digital currencies.
Regardless of clear evidence from altcoins, bitcoin maximalists still hold on to their belief majorly because they've invested a lot of time and money into Bitcoin, and they can't stand to see it lose value relative to other cryptocurrencies. But sooner or later, they're going to have to accept that Bitcoin is just one option among many and that it might not be the best option in the long run.
While Bitcoin certainly has its advantages over other coins, it would be foolish to assume that it will remain the dominant player forever. Therefore, it is important to keep an open mind when considering what cryptocurrency might become in the future.
The future of cryptocurrency is bright, regardless of what Bitcoin maximalists think.