The crypto-economy gains mileage when new digital currencies come up. A lifetime ago, bitcoin was the major player, but not anymore, as dash, monero, ripple, and ether have entered the market. The big question is: will bitcoin lose value when a “more convenient” digital currency surfaces?
The bitcoin network operates on blockchain; which of itself is a perfect technology. But the bitcoin is not without fault. Even its creator (Satoshi Nakamoto) recognized that bitcoin might need improvement, which is probably why he made it open source. The main problems associated with bitcoin are down to three things:
Supposing a cryptocurrency that solved the above issues entered the market, would it edge out bitcoin?
Bitcoin is a Giant
History is full of many examples of underdogs that overpowered their rivals, e.g. Google over Yahoo! And Donald Trump over Hillary Clinton.
But when it comes to bitcoins, it’s a little difficult for new entrants to push it off, simply because bitcoin is more of a movement than a product.
Bitcoin is somewhat stable and is characterized by increasing market value, making it a digital gold.
Besides that, bitcoin is gaining wider acceptance in the developer, user, and merchant quarters. It’s a massive gear, rolling, adding new cogs.
The bitcoin mining community is global, and it doesn’t matter whether miners are from first world countries or third world countries, as long as they own a node, they become peers.
Anyone who has interacted with bitcoin appreciates one fact; Nakamoto had thought through his invention. The network has amassed wide popularity because it is:
- Open source: the bitcoin protocol is open source, which means that its source code is “developable”, and this quality made bitcoin an instant hit with the developers. We want to be part of something greater than ourselves. And bitcoin presents that chance to anybody with a valuable idea.
- Nonprofit oriented: if Nakamoto had wanted to, he’d have levied some “tax” on his invention, so that every transaction would have earned him some BTC’s, and now he’d be a billionaire, but Nakamoto chose not to (was he really human?).
This invention was clearly aimed at helping mankind.
- Decentralized; unlike the banks that hold power over the movement of money, bitcoin facilitates decentralized transactions, which means, there’s no figure that controls the movement of the digital asset that is bitcoin. In simple terms, the software doesn’t pass judgment before processing transactions.
Where can I buy bitcoin?
What’s in store for the future?
Already there are more cryptos in circulation than the market can handle, considering that we have fiat currency still in operation.
I believe that digital currency is the way for us, and if that will be so, it follows that tech firms will take the place of banks.
The world is converging towards a point of “equality” and that’s a praiseworthy objective, but in my view, unattainable.
It’s not our fault that we are unequal, though.
Maybe that’s how God intended.
Maybe what we see as equality from the digital currencies could be the start of something sinister.
Who knows how further down the rabbit hole extends?