Bitcoin Maximalism vs "Crypto"
On Bitcoin Maximalism
A subject of debate in the cryptoverse is the Bitcoin Maximalism vs adopting other “Crypto” as well.
There are two schools of thought the Bitcoin Maximalist being only BTC has intrinsic value and everything else is a useless altcoin, even Ethereum; which currently has more active wallet addresses than Bitcoin.
The Bitcoin Maximalist does not believe that several cryptocurrencies can coexist peacefully side by side providing different utility. They believe everything that is not Bitcoin core is simply a altcoin, a grift created with no real use case.
BTC so far has proven to be an incredible store of value. The short term volatility can be nerve wracking for people entering into it but the growth over the course of its lifespan speaks for itself. It has first mover advantage and is truly decentralized, deflationary, and overall a revolutionary asset class helping to further usher in the digital age.
Nonetheless, other cryptocurrencies/crypto assets have emerged onto the scene attempting to replicate its success. There are countless thousands, many of which are worthless and going to zero.
Among the most interesting of the non Bitcoin crypto is Ethereum. It is the second largest in Market Cap at time of writing, transacts an incredible amount of volume, and has a vast number of active wallet addresses. Nevertheless the Bitcoin Maximalist does not recognize the legitimacy of Ethereum or any “crypto” that is not BTC.
Where you stand in this Bitcoin Maximalist debate is entirely up to you to decide. Personally, I tend to take a Market Cap and Volume approach in evaluating. It’s almost impossible for me to ignore the growth of something like Ethereum, I feel as if it’s leaving money on the table to completely shun it and look the other way.
There is no reason to shun the performance of non BTC cryptocurrencies. Just do your own due diligence when acquiring them and know the risk they entail. The top 10 of crypto a few years ago is completely different from the list of today. Many of the projects simply will not make it.
Identifying up and coming solid projects and realizing capital appreciation and yield from them is a great way to up your Bitcoin stack.
Obviously there have been Bubbles and Manias in this space and since time immemorial (see the Dog Coin Frenzy) that defy logic. It’s possible to make money off these speculative frenzies, but that’s simply not our style.
Ultimately I believe BTC is supreme now and likely for the foreseeable future, Bitcoin Maximalists nail this aspect down. It is impossible, for me anyways, to predict exact prices and Market Caps, I just evaluate based on trends and use cases.
3 Points to use to evaluate the strength of a project are:
- Simple Protocol (Means more secure, never hacked)
- Tokenomics (Deflationary)
Based on these metrics Bitcoin reigns supreme
The Bitcoin Maximalist has great talking points on the strength strength and merits of BTC so they are a force to be reckoned with.