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- 1 With over 30,000 altcoins in existence, Bitcoin is still the undisputed king.
- 2 Digital scarcity and other features make BTC unique.
Bitcoin is the ultimate king of cryptocurrencies. With thousands of altcoins in the market; why no one has the potential to dethrone BTC? For many people, cryptocurrency is Bitcoin, even when there is a plethora of options like Ethereum (ETH), Doge (DOGE), Cardano (ADA), etc., available in the market. Here is a deep analysis of how Bitcoin has already won.
Bitcoin: The Undisputed King of Crypto Realm
The main reasons behind Bitcoin being an undisputed king are its simplicity, ingenious mechanisms, and a few months ago, its market cap was more than every other cryptocurrency combined. A problem that Satoshi Nakamoto, the anonymous creator of Bitcoin, tried to solve was by creating a strong and dependable alternative to the flawed traditional financial system.
Many experts argue that Bitcoin is the only crypto asset worth holding, and no other altcoin comes close to the idea. The foremost reason is its digital scarcity, a one-time phenomenon. At its inception, BTC leveraged digital scarcity most intuitively.
Digital Scarcity: The Foundation of the Bitcoin Ecosystem
With the internet just being a hodgepodge of 0s and 1s, it’s easy to store information but difficult to store value. It is known that information can be easily copied, just as one copies a JPEG or article. Considering the defining attribute of information – it is dematerialized and grants dual characteristics of speed-of-light transmission and infinite replicability.
This infinite replicability contradicts the virtue of value. For value to exist on the internet, it needs to be finite. A system whose architecture allows informational replicability but circumvents value replicability creates a system of digital scarcity.
When a person owns 1 BTC, what is really held is the consensus view of every computer on the Bitcoin network. A network that has authority over 1 of 21 Million BTC supply. A BTC owner owns an inalienable property right. This creates a sense of value and unilateral control over something finite.
Experts bet that Bitcoin is the pioneer of digital scarcity, while every other cryptocurrency that currently exists is a mere copy of this system. Moreover, every other cryptocurrency tries to present something different that classifies them as unique, but the foundation remains the same.
Money: How Bitcoin Ecosystem Leverages Its Power
Metcalfe’s law states the value of a network is proportional to users multiplied by 2. Since the inception of telephones, the internet, and social media, the network growth has been proportional to the number of users adopting it. This immense user base has the potential to move vast amounts of money, and the reason these networks exist in the first place.
Gold emerged as the worldwide monetary standard after centuries of market experimentation with various commodities as money. The United States is also looking for ways to back its fiat currency with gold in the proposed “Gold Standard Restoration Act.” Gold achieved the status because of its scarcity, thereby, becoming the most reliable store of value.
Comparing how people store their wealth in gold versus other commodities, data states that it’s nearly $12 Trillion in gold compared to $300 Billion in other commodities. Gold has become a Shelling Point, a theoretical focal point. Humans tend to store wealth when they find an intrinsic store of value, compared to which others might fail in the future.
Bitcoin’s digital scarcity portrays the cryptocurrency as an intrinsic store of value. Its maximum supply of only 21 Million and the speculations for its price touching new highs in the future make BTC even more attractive.
What Makes Bitcoin Unique?
To make a replica of Bitcoin requires a dedicated and able leadership team and a huge marketing budget. Paradoxically, when leaders are involved, the basic idea of decentralization is compromised. With over 30,000 crypto projects currently in operation, nearly everyone is a (decentralized in name only) DINO project. They have a central organization or a body governing them.
The Bitcoin network was created with great attention to detail, simplicity, and understanding of future perspectives. Though anonymous, it had a great and promising team. Unless someone can show the same level of dedication and create something unique, no one can dethrone Bitcoin.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
