JANUARY 7, 2020 / 21:46 UTC
LONDON (Fintech Zoom) – Bitcoin was the first decentralized cryptocurrency in the world. The network was created by Satoshi Nakamoto, a pseudonym who laid down the principles for a truly decentralized consensus based system for recording transactions and verifying ownership using a public ledger. While the goal to make Bitcoin a universal mainstream currency is still a work in progress, Bitcoin still rules the charts of total cryptocurrency market capitalization in the world with over 50% of it belonging to the cryptocurrency – Bitcoin Vs Altcoin.
Altcoins or alternative coins are Bitcoin’s soft forks. They are based on Bitcoin’s paper itself but various changes in the actual launching of the underlying code were made to revolutionize or improve/evolve the technology.
Ethereum presented a programmable blockchain option; a platform that could record any transactions and make them immutable. Ether (ETH) was its native cryptocurrency.
Litecoin (LTC) was started as a silver to Bitcoin’s gold and innovated first with Lightning network. Centralized banking enable Ripple (XRP) was based on a model of limited supply and the backing of a major company directly.
Bitcoin Cash on the other hand was a hard fork of Bitcoin and diverged from the blockchain more than 2 years ago based on an increased block size. Other major coins like Cardano, Dash, Monero, NEM, NEO, etc were all based on the original bitcoin paper but added major upgrades and changes.
Critics of Bitcoin often call it a dinosaur, an older, slower and much more stubborn network that doesn’t update fast enough, doesn’t have faster transactions and simply doesn’t innovate enough (according to them).
We have had more than 11 years since the existence of Bitcoin and even now, no altcoin ever comes even close to challenging the supremacy of Bitcoin itself. Similar to Gold, which has long enjoyed the status of a safe haven and a storage of “real value” and nothing has come close to challenging it despite the advent of other precious substances including metals.
Critics like to say that one day Bitcoin will become obsolete and will be replaced by a faster, more innovative coin. While that hasn’t happened yet, Just like Gold, one can say with surety:
Bitcoin cannot be replaced by another coin as the face of the cryptocurrency movement.
Because Bitcoin’s many of the “problems” associated by critics are actually its strengths. It doesn’t jump to innovate because money matters are sensitive and the system cannot be changed just because a shining new tech comes along. It needs to prove itself before it becomes a part of the all-important Bitcoin network. Bitcoin network network is stubborn but that’s not always a bad thing. The US Federal Reserve is extremely stubborn regarding its practices and it is for that reason respected around the world for authenticity. Billions of dollars of infrastructure, investments and now futures contracts and trading are done through Bitcoin, not another run-of-the-mill altcoin.
So, for this reason, Bitcoin cannot be replaced by any other altcoin. It is and will be the real deal in the crypto world!
Also, today Bitcoin is very important to all crypto exchanges because it represents 50% of transaction volume! Bitcoin can only be replaced by an altcoin when the new currency has some market share in the markets and when Bitcoin has low representativeness in transactions. But …. can this happen?
To understand the importance of Crypto Exchanges, read here: Is Bitcoin Market manipulated by Whales?
And also, read Bitcoin and Ethereum in Exchanges
First Published at Which altcoin will replace Bitcoin? – Fintech Zoom