In terms of adoption, Bitcoin remains unrivaled. However, many competing blockchains have surpassed Bitcoin in terms of network functionalities and scalability over the years.
Because it is now being invested in more by institutions, big-ticket players, and seasoned investors, many young people have dubbed it the “boomer coin.” Altcoins, on the other hand, while speculative and risky, have the potential to offer higher returns due to their exponential surges. As a result, it’s no surprise that many young risk-takers prefer these.
That is not to say that Bitcoin has lost supporters, with a variety of factors encouraging proponents to stick with it. On a recent podcast, macro-investment strategist Lyn Alden discussed some of these, focusing on why Bitcoin is fundamentally different from all altcoins.
In contrast to precious metals, an infinite number of similar blockchains can now be created. People may even perceive this as a threat to Bitcoin because it may dilute the intended scarcity created by its limited supply.
People, however, don’t understand how “one blockchain is better than another in terms of security and moneyness,” according to the investor.
According to her, the key to Bitcoin’s superiority is its network effects, with the number of users directly contributing to the network’s value.
Alden also used Wikipedia as an analogy to further explain his point. Reproducing the website’s content or source code would not generate the same amount of traffic as the original. She continued,
“I can copy all of the texts, but I can’t copy the network effect… and millions of links pointing to the real Wikipedia on the internet. And I can’t replicate the active user base that keeps Wikipedia up to date. Bitcoin benefits from the network effect.”
The Lightning Network, BTC’s layer 2 payment platform, can only improve on its already excellent network effects.
“As a result, BTC now has several layers of network effects built on top of it. The level of security has increased. The development is more secure, and features are being added on top of it.”
Alden claims that
“Overall, that is what distinguishes Bitcoin from other tokens, and it is primarily why we regard that one as money and everything else as, at best, equity or, at worst, a scam, when compared to Bitcoin itself.”
The investor was also quick to point out that the hardware is on Bitcoin’s side. There are many wallets and platforms that cater solely to BTC, as well as those that support a variety of tokens. This provides the top virtual currency with a “larger type of surrounding ecosystem.”
Nonetheless, Bitcoin’s superiority in these areas cannot overshadow the ground-breaking performance of several altcoins in recent months. While Bitcoin has done well recently, some cryptocurrencies, such as ADA and Solana, have managed to reach new highs as a result of constant network upgrades.
This has even led some to predict that the crypto-community will experience an altseason.
It should be noted that an alt-month is already in progress. Over the last 30 days, 88 percent of the top 50 coins outperformed Bitcoin.