Posts

Bitcoin is not the best crypto asset

avatar of @badbitch
25
@badbitch
·
·
0 views
·
3 min read

src

Bitcoin is not the best crypto asset

Bitcoin is the largest crypto asset by market capitalization, also the first widely successful asset protected by cryptography but it is not the best crypto asset! This has been up for debate so many times but just because it is the most expensive doesn't make it the best, the most expensive car in the market today isn't the best in the market. Same thing applies to bitcoin and I'll explain it better below.

Bitcoin maximalists will definitely not want to hear this but Bitcoin is not the best crypto asset, yes, Bitcoin has successfully created room for a technology that is geared to widely restructure finance and lifestyle, however, it still isn't the best out there because it lacks the structures that feeds the demands of the financial markets.

As a blockchain, Bitcoin is often considered the most secured network, this is because of the computations involved in running the network. The algorithmic rules that powers bitcoin makes it one of the most secured blockchain network as it is not cost efficient for anyone to attempt hacking or centralizing the chain - so far, there isn't any practical ways to do so, much of the theoretical approaches would lead the bad players on billions of dollars risk practices.

That said, the reality of bitcoin as a network is that it is not very efficient for the growing business environment. Bitcoin as a blockchain, at least at its current state, cannot power commerce; the majority of the world's crypto users view bitcoin as gold, which means it doesn't fit into frames of a currency, let alone a powerful one at it.

Of course, I'm not an economist or a financial advisor but I can tell you that numerous crypto assets will challenge bitcoin and they will win for so many reasons. Now I know that the lightning network is a proposed technology to take away the flaws of bitcoin but I do not think it will be a strong competitor without determinable incentives, and low risk of operations.

What the world needs is a blockchain that can efficiently handle these operations on the layer one where there are no censorship factors and high throughput, something that Bitcoin takes a freaking 10 minutes.

Also, Bitcoin's low cap is also one of its flaws, many people only see the value it has as it creates the scarcity effects when high demand comes in but if the Bitcoin community dreams of having bitcoin dominate commerce, they better stop dreaming because bitcoin is already poorly positioned for that. The reason for this is that the supply exposes it to high volatility, something that might not change for a very long time. Some would just assume that at some point we'd start thinking in Satoshi rather than Bitcoin, but that's not all there is.

The big boys entering the space will make the supply more limited than it already is. Even counting in satoshi isn't going to be so fancy. Now, none of this means bitcoin is valueless, if anything, it is the most valuable crypto asset, however, other crypto assets will have more and better regenerative income structures than Bitcoin and also perform better for commerce, which is the most crucial aspect of the crypto ecosystem.

Thank you and please leave a comment, your thoughts matter to me

Posted Using LeoFinance Beta