For over a decade, Bitcoin has been the king of the crypto industry; more accurately, it’s the so-called “grandfather” of cryptocurrencies, the first that spawned the rest.

Over the majority of this decade, the asset’s primacy hasn’t been threatened. But, ever since 2017’s bull run, there have been some claiming they’ve created a “better Bitcoin” or a blockchain to beat all the rest. I won’t mention any examples, but they’re easy to come by — just take a look at Twitter or Reddit.

According to a prominent investor, however, it is nigh impossible for Bitcoin to be supplanted by another cryptocurrency project. And according to him, the logic behind this argument is rather simple.

Over the past few years, Bitcoin has been branded many things by its skeptics — the “Myspace” of cryptocurrencies and a “first-generation blockchain” are amongst the many names attempting to discredit the innovation of the system.

This was epitomized on Twitter when an individual commented that he struggles to get behind Bitcoin as an investment and technology because he sees it as the “Netscape Navigator of crypto” or a technology that is “great first but will ultimately be superseded.”

PlanB — a pseudonymous though respected institutional investor dabbling in Bitcoin — was quick to rebut this comment, writing (emphasis ours):

“If you see bitcoin as a protocol (like tcp/ip, pop/imap, http etc) instead of a product or company, it will become clear that ‘the next bitcoin’ is highly unlikely if not impossible. Network effects are important: you need developers, miners, exchanges, investors/liquidity etc.”

If you see bitcoin as a protocol (like tcp/ip, pop/imap, http etc) instead of a product or company, it will become clear that "the next bitcoin" is highly unlikely if not impossible. Network effects are important: you need developers, miners, exchanges, investors/liquidity etc.

— PlanB (@100trillionUSD) March 28, 2020

Indeed, with the introduction of the Liquid Network, Lightning Network, and other solutions, innovators are seeking to build all applications and functionality “Bitcoin competitors” have on BTC. Bitcoin is being seen as the base layer of a digital economy: the backbone of the future system.

Furthermore, it goes without saying that Bitcoin has the biggest network out of all cryptocurrencies, with the most active community and consistently-growing usage. For it to be passed would require a lot of work.

Dan Morehead and Joey Krug of blockchain-centric fund Pantera Capital echoed this, writing that even in the short term, there’s a high probability that Bitcoin outperforms a majority of altcoins amid the ongoing coronavirus crisis.

In “Crypto In This Crisis: Pantera Blockchain Letter, March 2020,” the investor explained that BTC will  “probably out-perform other tokens for a while,” explaining that it is one of the crypto projects that are seriously entrenched and doesn’t rely on inconsistent external funding per se:

It’s a project that’s already built, it works, it has an 11-year track record. Many newer blockchain and smart contract projects are still in development and might be stressed to raise funding to complete their development.

They further explained that “there’s typically a flight-to-quality” or flight to safety “where people want to put money in the mega-caps, the safest asset, “the Treasuries” of the industry.” In the case of crypto assets, Bitcoin is a Treasury bond, as it is much more liquid than the rest.

In the same letter, Pantera predicted that BTC could surmount its $20,000 all-time high within the next 12 months, citing the monetary and fiscal trends that are transpiring.

The post It’s almost impossible for Bitcoin to be supplanted by an altcoin; here’s why appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

202 +