What is a Bitcoin maximalist?
Bitcoin maximalists comprise a vocal group of entities supporting this virtual currency.
A Bitcoin maximalist is a person that believes that this cryptocurrency will be the only digital asset that people will need in the future. Currently, this digital currency is the most popular in the world over. According to Bitcoin maximalists, all the other virtual currencies are inferior to this cryptocurrency. The notion behind the maximalist ideology is that other digital currencies do not align with the initial ideas that Satoshi Nakamoto outlined in a white paper while creating and launching Bitcoin.
Unlike the government-issued fiat money, Bitcoin doesn’t have a managing or regulatory authority. Instead, this virtual currency is decentralized. This virtual currency uses blockchain technology, which creates a public, distributed database or ledger. That means all participants can access the information in this ledger. What’s more, nobody can alter the data entered in this public ledger.
Today, Bitcoin is one of the most digital assets that people trade on platforms like Bitcoin Pro. Its popularity is also the reason why most cryptocurrencies have emerged. According to Bitcoin maximalists, other cryptocurrencies, known as altcoins, are inferior and unnecessary.
Comprehending Bitcoin Maximalism
Bitcoin was undoubtedly not the first attempt in the creation of a decentralized digital currency. However, this virtual currency is by far the most successful. Bitcoin maximalist idea is that the blockchain network provides everything an investor needs from this kind of currency. Consequently, maximalists are unapologetic for favoring or agreeing that Bitcoin deserves an inevitable monopoly. And they believe this will come to pass at some point.
Vitalik Buterin, the Ethereum developer, described the Bitcoin maximalism idea as the dominance of this virtual currency. Essentially, Bitcoin maximalism is the notion that an environment with several competing virtual currencies is undesirable. Consequently, launching another cryptocurrency is not correct. Bitcoin maximalists believe that Bitcoin is righteous and its eventual monopoly is inevitable.
Why Bitcoin Maximalism Exists
Bitcoin maximalists comprise a vocal group of entities supporting this virtual currency. Here are some reasons for believing that Bitcoin will eventually render other virtual currencies ineffective.
The Bitcoin’s Network
According to most Bitcoin maximalists, this virtual currency is successful because of its underlying blockchain technology or network. While other virtual currencies might feature modifications on the original premise for Bitcoin, hoping to address the inherent issues of its network, the strength and length of the blockchain is the ultimate success marker.
Bitcoin has a solid underlying network. Today, Bitcoin is the virtual currency with the most extensive network. It also has the largest market cap. All these factors point to Bitcoin’s dominance in the crypto space.
Bitcoin is an Established Digital Currency
Bitcoin maximalists also hold the perception that this virtual currency was the first form of digital money. Other virtual currencies appeared when Bitcoin had already gained supporters. Some cryptocurrencies appeared when people had reliably proven Bitcoin’s ability. And this explains its current large market capitalization. According to Bitcoin maximalists, beating this digital currency will be hard for altcoins. That’s because the market has already established its strategic position.
Another argument by maximalists is that Bitcoin has a significant influence on altcoins trading. Essentially, Bitcoin’s price serves as the benchmark for the value of the altcoins. And this hints at their inferior quality. Most maximalists argue that people invest in altcoins for diversification purposes. Thus, a person will buy altcoins to diversify cryptocurrency holdings.
Bitcoin Maximalism’s Future
According to Bitcoin maximalists, any issue with the technology behind this virtual currency is solvable. What’s more, they argue that Bitcoin is still undergoing some developments. Nevertheless, whether companies, investors, and governments opt for this virtual currency or other options will determine whether maximalists will win. However, the increasing investments in other cryptocurrencies and networks mean more virtual currencies are likely to emerge in the future.