Bitcoin was created by Satoshi Nakamoto in 2008, and its first block was mined in 2009. It was invented to replace traditional currencies which require the approval of a bank for transactions to be made. Bitcoin is the most successful decentralized cryptocurrency and has overseen the creation of hundreds of other cryptocurrencies over the years. Some of these cryptocurrencies are built from the basic Bitcoin structure, while others are based on blockchain technology but make use of a different overlay.
What is Bitcoin Maximalism?
Bitcoin has remained at the top of the charts since its invention and is the highest priced cryptocurrency with the largest market cap. This has led to several people believing that Bitcoin is the greatest cryptocurrency and that there is no competition rivaling it. What is Bitcoin Maximalism? These people are called “Bitcoin Maximalists”. They believe that Bitcoin is the only cryptocurrency that matters and that it is the answer to the future of finance.
What Bitcoin Maximalists Believe
Bitcoin has its fair share of problems, but that does not deter Bitcoin Maximalists. They are firm in their stance and staunchly believe that:
- Bitcoin will be able to provide for everything an investor is looking for in the future.
- Although Bitcoin Gold and Bitcoin Cash have much lesser features than other altcoins, they are more expensive and are of a higher standing in the market due to their association with the Bitcoin network.
- There is no match to the history and success of Bitcoin, and this sets it apart from other blockchain technologies.
- There are several altcoins which can only be bought with Bitcoin. This has led some maximalists into believing that the money spent on obtaining the altcoins is a waste, as the institutions and parties gaining Bitcoin from the transaction are the real winners.
- Bitcoin will always remain the main focus while other cryptocurrencies try to build around it.
- Bitcoin is already established and it’s success? proven. This means it is reliable.
Bitcoin Maximalism isn’t Considering the Facts
It’s great to focus on the positives of the network, but to blindly ignore obvious issues is ignorance. Here are some:
- Bitcoin platform changes are primarily decided by developers, miners, and noders. The problem with this is that what may be beneficial for a miner, may not necessarily be beneficial for a user. This may lead to several inconveniences and a sense of exploitation.
- Another big problem with the platform is scalability. As the number of users increases, the more time and resources it takes to perform a transaction in unit time, increases.
- Payment service providers like VISA and MasterCard can process up to 8,000 transactions per second. When we compare this statistic to that of Bitcoin, the numbers fall flat; only a maximum of 10 transactions can be processed per second. When the number of unconfirmed transactions is in the thousands, users may have to wait for long periods of time for their transactions to be confirmed. This is a big inconvenience. Sharding techniques are being developed to counter this problem and it may be solved in the near future but until then, Bitcoin Maximalism is ignoring legitimate problems with a network that is not so pious.
What is Bitcoin Maximalism? Now you know!
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