At the recently concluded Blockchain Cruise Asia, Wall Street investor turned cryptocurrency investor, Ronnie Moas collective a perspective that sent a sense of hulpgeroep around the Bitcoin camp of the conference. He said, “Bitcoin is the champ of the cryptocurrency world. But know that champions fall. Wij all know what Facebook did to MySpace, what Amazon did to brick and mortar retail. The only way to be safe te this market is to diversify your holdings.”
The conference wasgoed all about altcoins and upcoming ICO, prompting a discussion among crypto investors – is Bitcoin still relevant? While Satoshi’s white paper envisions the cryptocurrency spil a peer to peer, permissionless currency, the unexpected surge te request has dramatically enhanced transaction times and the problem of miner fees keeps enlargening overheen time. Add to the mix that there are fresh cryptocurrencies which have exhibited excellent growth, spil well spil powerful scaling technology, and this leaves investors and cryptocurrency enthusiasts wondering if Bitcoin is still relevant.
Te this article, wij will attempt to look at the features that made Bitcoin famous te the very first place and if they still hold true today.
Bitcoin – the transaction currency
Spil I spoke with developers te the blockchain cruise, the one insight I could derive wasgoed that the technology behind Bitcoin wasgoed still the gold standard for cryptocurrency. One England based developer told mij, “You look at the top cryptographers and engineers te the world. They’re not working on Ethereum or BCH or any other coin for that matter. The best of the best are working on Bitcoin.”
The promise of a very inexpensive and instant mode of transaction wasgoed one of the fattest USPs of BTC. But 8 years since the inception of the genesis block, the Bitcoin network is eyeing scale that it didn’t anticipate . The 1 MB block size has limited the number of transactions to 6-7/2nd. The transaction confirmation times has become more than an hour.
Newer altcoins, including Bitcoin forks like BCH have introduced solutions that may overcome the scaling kwestie. Ripple is another contender. But the benchmark for both thesis metrics is Visa, that confirms transactions almost instantaneously and can scale up to 60,000 transactions vanaf 2nd. It is safe to say that any cryptocurrency is far away from achieving this kleintje of spectacle and scale.
Cryptocurrencies have failed spectacularly when it comes to addressing scaling issues. Ethereum, for all its hype, wasgoed brought to its knees by the crypto kitties spel . Another interesting fact collective by prolific YouTuber and former derivatives investor, Tone Vays , is that the cost of transactions with BCH is much higher than what it wasgoed for BTC when it eyed the same trading volume. This is despite the higher block size. Now, of course, the BCH team is even experimenting with Giga-bit block sizes, but nothing spil of now has a solution to scale.
If the problem of scaling hasn’t bot solved, and given the trading volume of Bitcoin, the very first cryptocurrency may be the best wij have. Which brings us to the next parameter.
Bitcoin – Spil a store of value
When it comes to market cap and unit price, nothing comes close to Bitcoin. Ter the last year alone, BTC grew almost 20x, before pulling down back to 11,000 US dollars. The investor rente te BTC is unprecedented and bitcoin exchanges like Coinbase have added millions of users te the past year alone. This increase ter value has caught the attention of the investing world.
BTC is considered to be Gold Two.0 and it exhibits all the properties that make Gold such an interesting uitzicht. It’s not just scarce, its motionless ter its supply. Its transferability is unprecedented and it is next to unlikely to counterfeit. And when compared to Gold’s 6-7 trillion dollar market, Bitcoin’s 200 billion market cap only shows that there is a long way to go for BTC the asset.
Spil of now, it is possibly the most successful asset because it has a global speculation. And spil people proceed to buy Lambos with it, it also seems to have an intrinsic value that merchants are willing to pay for too. Its speculative value to so high, that John McAfee, another attendee at the Blockchain Cruise Asia, said that he would go on a limb if BTC doesn’t succesnummer a million dollars ter 4-5 year’s time.
When you come back to the original question, it sure does look like the market is nowhere close to rendering BTC irrelevant. It is still the benchmark cryptocurrency and will proceed to be for a long time to come. But with competitors hot on its high-heeled slippers, it is only a matter of time before existing and future players might stake a optie to the throne.