When an industry expert speaks, they are worth listening to. They will give you insights on things you didn’t know about, one such expert is Jimmy Song, a bitcoin developer, and entrepreneur. Using Medium, he explains what makes bitcoin remarkable and how investors can gauge its long-term value. Below we will look at 4 reasons that make bitcoin the best according to Song.
It’s the biggest innovation
Song can’t help but point out that almost every new coin, hard fork or ICO is always described as the innovation that is going to solve bitcoin’s shortcomings, therefore, render it useless. Many of them though end up vanishing without any use or adoption. He says the innovations and features offered by bitcoin alternatives are actually minor tweaks on the giant innovation that is Bitcoin. Adding many miss the point since the biggest innovation has already happened. The real innovation is decentralized digital scarcity and in this regard bitcoin was the first and it’s one of the reasons that make bitcoin the best.
The network effect
Song argues that since bitcoin has the biggest network and it benefits from this network effect – a situation where its value rises as more people use it – other competing coins are merely playing catch up. Bitcoin has benefited from being the first cryptocurrency and as the network has grown, subtle benefits have accrued.
No altcoin has its decentralization
When it comes to decentralization no altcoin can beat bitcoin. Song says Bitcoin doesn’t have a single point of failure. Any other crypto that has come up after bitcoin has had a company or a founder behind it and the people in charge exert greater influence over their altcoins than anybody else. Based on this, as song argues, ICOs and other cryptos are far more centralized than they would admit. On the contrary, Bitcoin has no central authority that can diminish its utility and it’s actually scarce. The consent of all users is required for it to change qualitatively.
It’s the real revolution
This is one of the reasons that make bitcoin the best. Song says BTC will go on to be different because unlike the other centralized coins it’s unseizable, market-driven and immutable. These three happen to be the properties of what great store of value is all about. They give bitcoin utility that no other coin has.
He admits he would be over-optimistic to assume Bitcoin can’t be displaced but to create another truly decentralized coin would take another innovation as big as bitcoin itself.
What other reasons make bitcoin the best? Let us know in the comment section below.