What does Bitcoin Maximalist Means
The most well-known cryptocurrency in the world, Bitcoin, is considered by Bitcoin maximalists to be the only digital asset that will ever be required. Maximalists think that Bitcoin is superior to all other digital currencies. According to the maximalist worldview, other cryptocurrencies do not adhere to the standards set by the anonymous Satoshi Nakamoto, who founded Bitcoin in 2009.
Unlike government-issued fiat currencies, which are controlled by a single entity, bitcoin is decentralised. As a result of Bitcoin’s decentralised nature and blockchain’s status as a publicly distributed record, participants can see and understand all transactions.
Despite being a widely traded digital asset, Bitcoin has also sparked the development of numerous new cryptocurrencies. These additional cryptocurrencies, known as altcoins, are seen as superfluous and subpar by Bitcoin maximalists.
What is the Ideology of Bitcoin Maximalist
A Bitcoin maximalist, as the term suggests, is someone who thinks that Bitcoin is the only cryptocurrency that matters. Not only in terms of worth and cost, but also because it is the only digital asset that has the potential to improve society. All other digital currencies, also referred to as “altcoins” or “shitcoins,” are subpar to Bitcoin and do not meet the criteria set forth by Satoshi Nakamoto, the person who invented the cryptocurrency.
Even though Bitcoin is and always has been the most popular cryptocurrency, many individuals believe that every Bitcoin maximalist is mistaken. They’ll discuss how, Solana information.
And other networks offer much improved infrastructure, reduced costs, and quick settlement. Bitcoin maxis, however, will refute that claim by claiming that none of these networks are as secure as Bitcoin. There are many disputes that go back and forth, and there is no right or wrong because everything is up to preference.
The phrase “Bitcoin maximalism” is also a little misleading because other projects are also working on decentralised cryptocurrencies; Bitcoin is not the first.
Nevertheless, it is the most successful endeavor to date, supporting the maximalist view of Bitcoin that it would provide everything that businesses, investors, and regular consumers need. It is a digital currency that can monopolize the cryptocurrency market in the future since it is future-proof. On paper, that could appear impossible and like a bad attitude toward cryptocurrencies, but Bitcoin maximalism is a little more complicated.
A Bitcoin maximalist will, at their core, look for ways to support and improve Bitcoin, admits, co-creator of Ethereum. Because of this, the motive is advantageous for the ecology.
Although there will be differing views on this subject, Buterin believes that “building on Bitcoin is the only way” is not the best course of action. Being the most well-established network and the most popular cryptocurrency, Bitcoin is a force to be taken seriously.
Bitcoin and Other Cryptos View and Arguments
Since bad CeFi crypto services and cryptocurrencies have just come to light, there are several ethical difficulties that Bitcoin Maxis constantly criticizes.
The first is the value and calibre of alternative currencies. 72 of the top 100 cryptocurrencies have experienced falls of at least 90% during the current bear markets. As a result, Bitcoin Maxis constantly questions the usefulness and worth of these coins. Coins like LUNA and CEL are two examples.
The second concern is the methods used by different CeFi crypto businesses and DeFi protocols, which frequently rug-pull investors or engage in dangerous lending and trading practises. As you can see with businesses like BlockFi, Celsius, 3AC, and many more, much of this is still extremely applicable today. Providing their opinions on this and frequently pointing out fraudulent APYs, such as those that are 100 percent and above, Bitcoin Maxis has been very active on Twitter. They frequently use the phrase “not your keys, not your coins” and advise their followers to remove their coins from those lending exchanges.
Although many Bitcoin Maxis are not necessarily experts in smart contract platforms, Web3 infrastructures, layer 2s, and other Web3 segments as they typically focus their analysis on the real economy, the state of the global economy, and the potential of Bitcoin as a future world currency, they are generally very good at analyzing the issues with centralized “DeFi” lending practises.
Maximalist Argument on Bitcoin
The Metcalfe Law
The idea that shoddy coins devalue Bitcoin is based on Metcalfe’s Law, sometimes known as the network effect. The value of a wide range of networks, including social networking, telecommunications, and the Internet itself, can be expressed using this law. The number of distinct connections in a network is represented by the expression n(n-1)/2, where n stands for each “node” or user.
According to the theory, a network gains value as more distinctive connections are added to it. Theoretically, as more alternative coins are created, the network of Bitcoin will lose nodes or users, which will lower the value of Bitcoin.
Metcalfe’s Law has logic and validity, but it doesn’t entirely support the idea that one coin should rule them all. The underlying premise is that just because a user supports or utilizes an altcoin, they are no longer strongly invested in or involved with Bitcoin. This is simply untrue. Given that Bitcoin is the most established and well-known cryptocurrency, it is quite improbable that someone investing in an altcoin isn’t already a member of the Bitcoin network or has no intention of leaving it.
Bitcoin vs. Altcoin Cryptocurrencies
It’s also crucial to remember that healthy competition can lead to innovation. However, they start to specialize and expand into certain niches when a market is overrun by competing goods.
One of two things frequently results from this. You either end up with a market full of similar but slightly different items all competing for the same market, or the market itself becomes incredibly diversified and there is no longer much competition between products.
Dominance of Bitcoin over Other Cryptos
Interestingly, the Bitcoin Dominance Chart shows that BTC’s market share has been steadily declining for years, which denotes the emergence of altcoins and other cryptocurrencies that investors consider to be worthwhile investments. While this doesn’t change Bitcoin Maxis’ opinions about the value of Bitcoin in comparison to these other cryptocurrencies, it does highlight a general trend of more coins becoming available.
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