In Defense of Bitcoin as the sole currency of crypto

"In Defense of Bitcoin as the sole currency of crypto"

“United we stand, divided we fall.” I’m speaking of the esteemed, but vilified “Bitcoin maximalist” or perhaps better denoted as “Bitcoin extreme probablist.” In recent days we have seen fresh controversy over the place of “alternate” currencies in the cryptosphere, and why it’s both critical and likely for Bitcoin to maintain the role as the premier and only crypto that is a currency.

[Not can, there will most likely be only one]

-Free market inclination towards not in instead of:

Some say it is “against the free market!” to suggest Bitcoin will be the only coin left standing after the dust settles from this bear market and speculators slink back into their traditional commodities. I submit the counter, the “maximalist” sees a future where Bitcoin stands its ground in a free market, and battles with historic trends and logical determination to once again prove itself the undisputed champion.

[If you’re going to strike the king, make sure you kill him]

-Economic network effect

When a currency becomes the standard i.e. the most stable, secure store of value, the natural inclination will be to use that currency. Bitcoin right now is the most robust currency with this distinguishment. With further utility and adoption, this will become more pronounced as users gravitate to this “ideal” choice. If you held the USD and could transact globally with one currency, why would you choose another? Bitcoin is not “gold” as we know it, but digital gold. It’s a unit of account of Satoshis, both for store of value and spending. If I received an alternate currency, and I was interested in maintaining value, I would sell it to, or demand payment in, this unit. Bitcoin is inherently Extra-governmental, decentralized, censorship-resistant and not beholden to a State for transactability. In the remote event of a State’s limitation (with attempted enforcement,) if they did accept any crypto, they would also accept Bitcoin. This completes the cycle of alternate to primary store of value to preserve wealth.

[All coins lead to bitcoin]

-Digital Scarcity

A currency is sound, in part, when it is free from counterfeit. With unsecure chains that exist solely to emulate Bitcoin’s code and will more coins into existence, that not only undermines the value proposition, but the entire ecosystem. The same as if you were to mine an asteroid for Gold and increase its supply 1 million-fold- The lack of something easily replicable, and limited in supply imparts value. If everyone has 1 bitcoin, no one has 1 bitcoin.

[We can’t all be rich on bitcoin- that’s the point.]

-Re-writing 10 years of experiment

If Litecoin were to take off, it would have to re-write 10 years of dominance and vastly separate itself in terms of code, value proposition, and technology. Unfortunately, what we know, is that it has had a birth-to-present history of “borrowing” code, and technological prospects from Bitcoin.

[Litecoin is same as bitcoin but behind in use-case]

-So goes bitcoin, so goes the crypto

Because of the Network effect, and the first-to-market experiment of Bitcoin, what we see in every recent market undulation that bitcoin goes up, the market lifts more. Bitcoin goes down, the market falls harder. Bitcoin is both the flagship and the buoy of our progress towards an open, decentralized, censorship-resistant world, financially. In a world where bitcoin fails as a store of value, it is unlikely any would muster the confidence as its replacement.

[Bitcoin fails, crypto is extinct]

"Bitcoin rises all ships" but for how long? After you stack your bags with "alts" what do you do next? Sell back for bitcoin. This marks the entire space negatively with exclaims that bitcoin and all crypto are “scams” and “pump and dumps.” For every seller, there is a buyer. What if we recognized this for what it is, and instead, constructively rallied to Bitcoin’s cause?

[My heart says multi-coin currency, but my brain says Bitcoin.]