In 2008, when commerce relied exclusively on financial institutions serving as third parties to process electronic payments, Satoshi Nakamoto published the white paper “Bitcoin: A Peer-to-Peer Electronic Cash System,” outlining the functionality of the Bitcoin blockchain network. A year later, the cryptocurrency’s elusive creator mined the first block of Bitcoin, the Genesis Block, which represents the foundation of the entire trading system. Bitcoin is one of the most empowering technologies in our society because it promotes freedom by enabling people to control their money while reducing the need for third parties.
From 2011 to 2013, the Bitcoin price managed to equal that of the U.S. dollar, during which time many cryptocurrencies emerged, including Litecoin. At present, it’s a superior form of money to the U.S. dollar, so it’s safe to say that it’s reached a significant milestone. Bitcoin has undoubtedly come a long way, and many believe it still has a long and prosperous road ahead. Bitcoin maximalism is again up for debate, with venture capitalists like Nic Carter rejecting the ideology altogether. Whether or not you should become a Bitcoin maximalist depends entirely on you.
What Is Bitcoin Maximalism, Anyway?
Bitcoin maximalism is a pejorative term coined by Ethereum developer Vitalik Buterin to indicate the dismissive attitude of Bitcoin users towards alternative currencies. You’ve most surely heard this term in cryptocurrency podcasts or on Crypto Twitter. This term gets thrown out a lot, but what does it mean to be a Bitcoin maximalist? Bitcoin maximalism refers to a person who considers Bitcoin the only cryptocurrency of value and believes that altcoins are not only technically flawed but also unnecessary and inferior. This person is so heavily invested in Bitcoin that they refuse to see its downsides, even if relatively few, so Bitcoin maximalism is largely driven by emotional superiority.
Why People Become Bitcoin Maximalists
In all fairness, Bitcoin maximalists have a point. Bitcoin is a good store of value because it’s widely accepted, liquid, scarce, divisible, and portable. Moreover, Bitcoin can be traded for goods, services, and other tokens or fiat currency. Bitcoin maximalists present compelling arguments for why Bitcoin should hold the number one position in the future, such as:
There’s An Entire Ecosystem at Work Behind Bitcoin
Bitcoin is powered by blockchain technology, an advanced database mechanism that expedites recording transactions and monitoring assets across the network. anyone can download a copy of the blockchain to be inspected; as the old saying goes: “Don’t trust, verify.” Proof of work is used to check the accuracy of new transactions added to the blockchain. Without a central authority to act as an arbitrator, ensuring that no one manipulates the blockchain for their interest is necessary. Proof of work can be described as a competitive process in which countless miners work on one block until the hash is solved to earn rewards.
Bitcoin Is Well-Established
Bitcoin has gone mainstream, embraced by a wide range of capital allocators. Bitcoin has evolved from an obscure fad to a mainstream form of investment and finance, accounting for roughly 42.5% of the market. Nevertheless, a few years ago, a group of developers proposed changes to how Bitcoin works, and Bitcoin Cash was born. It’s a hard-fork blockchain split from Bitcoin, the altcoin version of the popular cryptocurrency. Bitcoin Cash is an affordable payment system – transaction fees are generally lower than $0.1. Governments worldwide have become interested in regulating the cryptocurrency industry to protect consumers and investors, preserve financial stability, and guide responsible innovation.
Altcoins Usually Follow Bitcoin
Bitcoin remains the prime cryptocurrency, meaning that altcoins tend to follow its price trends, so investing in Litecoin might not be a good way to diversify your portfolio. Altcoins can’t be purchased directly using fiat currencies, so buying Bitcoin first and trading it for the altcoin of your preference is necessary. If the price of Bitcoin goes down, the price of altcoins also goes down, and vice versa. Bitcoin is the leader, and everyone follows the leader because they’re interconnected. As far as Bitcoin’s price is concerned, it’s mostly affected by its supply, the market demand for it, not to mention investor sentiment.
How To Become a Bitcoin Maximalist
As you already know, there’s nothing better than belonging to a group. The more you participate in activities with others, the more you feel you contribute to the community. Bitcoin maximalists are united in their beliefs, which is positive for the cryptocurrency community. In case you’re interested, here are some quick steps to kickstart your journey to maximalism.
- Commit to preserving Bitcoin for future generations. Bitcoin is part of the overall future of money, and the gains are especially great for people in developing countries. It’s too soon to predict the evolution of financial technology, but with an appropriate policy and suitable regulatory changes, we can imagine a bright future. Help others secure the system (i.e., Bitcoin) and the assets for future use.
- Run and encourage others to run Bitcoin software. Bitcoin is the one for which blockchain technology was invented. Blockchain technology has various applications, including but not limited to lending, insurance, securing personal information, and non-fungible tokens. Can Bitcoin revolutionize and change the world? Quite possible, but only time will tell.
- Use Bitcoin to the greatest extent. Countries that say yes to Bitcoin reap economic advantages via innovation, investment, jobs, and taxes. So, it’s hoped that other nations will follow El Salvador’s example in making Bitcoin legal tender. You can buy Bitcoin with fiat money on renowned cryptocurrency exchanges and receive payments using a wallet app. For clarification, Bitcoin can be used for online shopping, international payments, and payment for services like online courses, to name a few.
Remember that you’re rational, so don’t rely too heavily on biases, manipulation, or social influences.
Conclusion
All in all, Bitcoin maximalists want to return to the core roots of cryptocurrency, strongly believing that Bitcoin has superior monetary qualities. Whether or not investors, companies, and governments will settle for Bitcoin’s blockchain will determine if maximalists win. It’s important not to forget that altcoins have demonstrated throughput, so not all activity should occur on Bitcoin. Also, cryptocurrency projects shouldn’t compete.
