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Is Bitcoin the winning digital currency

pIs Bitcoin the winning digital currency?p p Whats up, party people? Chris Derose here, Community Director of the Counterparty Foundation, and todays question was asked by Ans OConnor.

Is Bitcoin the winning digital currency

Anse, you ask wonderful questions. Id love to answer them. Anses question was this. Is bitcoin gotten to be so popular, so large, have the networks effects grown so much that it is the guaranteed winner in the space?

So, lets explore that issue. Anse, Ive been doing this for a while and Ive seen bitcoin since the early days, its about five years. Late 2010 is when I really started following this.

In the early days, things were so uncertain. We werent really making any money, in terms of VC funding. We werent attracting any attention.

It was just a bunch of weirdos on the forums, basically, and there was no fanfare whatsoever for bitcoin. And, at some point thereafter, litecoin came out and people were like, well, maybe litecoin is better. Then some point after that, another coin came out, another Coin came out, and we have thousands of these all coins now.

And, in that time, Ive seen one by one by one by one, every project in this space that isnt bitcoin fail, either spectacularly or just die and diminish into nothing. You look at the metrics by which we can gauge the health of the network. We see, certainly, transaction counts are just to the moon. We see hashing energy as high as its ever been and we see the market cap of the coin.

We see VC funding. All of these measurements are just astronomically high, especially when compared to the allcoins. If there was any traction to be had in these allcoins, I think we would have seen some by now.

To date, the best we have, maybe, I think at the time of this article is litecoin, which itself is like real rocky and the hashing strength has been going down and down and down all year. The statecoins are an innovation, maybe. The problem with those coins is that they are premined. The sort of permissionless ledger thing doesnt even compete with bitcoin. So, if you look at Ripple, for example, thats a digital currency that they have but its not a blockchain technology and its not a competitor to bitcoin in any way.

Weve had digital currencies online now for a while, so theres nothing new there but in terms of the blockchain space, its increasingly obvious that bitcoin is the only one that matters by leaps and bounds. The degree and the magnitude of bitcoins success has, at this point, I believe, certainly set bitcoin into the realm of absolute success coming at the consequence that no other work chain is going to be at all relevant at this point. Maybe there will be something down the line.

Maybe. Im a bit apprehensive to suggest that anybody should be planning on that. You know, this gets into the nature of how blockchains work.

Is Bitcoin the winning digital currency

Certainly, theres some people out there that like to say, well, a blockchain is like a car. Well have a new model every year or something like that but the evidence has just not shown that. Weve had thousands new models of the cars, if thats what they are, and theyve all, again, achieved no market penetration whatsoever.

The nature of blockchain is that the first mover advantage is what secures the blockchain. This notion that we can have additional miners that come to the network, well, they are going to be miners that arent mining on bitcoin. These chains fight each other and it seems very obvious that the only incentive to mining on an alternate chain is to sell those tokens for bitcoin. You see that all of the time.

I think that its absolutely, at this point, just a waste of time to be looking at elsewhere. Maybe something else will come up, like I said. But the chances are so low that I think its an absolute success in the bitcoin world. You really cant ask for more clear and evident signs of that. You just think, too, what do you see in the papers?

What do you see on TV every day? How often do you see litecoin referenced? Litecoin has been around for five years now, four years, something like that and has nowhere near the coverage that you see with bitcoin and thats certainly true for everything. Dogecoin, obviously, namecoin, you name it, Monero. All these incidental coins, its a very difficult proposition that you are going to find somebody that is going to invest the time and money into creating software that either attracts a community to create software or any of these things when theres already a clear indication that bitcoins working.

You know, and another part of this debate too is, what doesnt bitcoin do that you need? Because the answer is probably or certainly not much, and if there is something that one of these other coins do that we need, itll be incorporated into bitcoin. Thats how open source software works. Thats how open platforms work. So, if you think that bitcoin is lacking something and someone comes by and wants to sell it to you, you should say to yourself, well, if its important then it will be added to bitcoin and Ill have it at that point because thats typically whats happening in this space.

So, I thinks it. Thats all the big issues. You know, I know that it doesnt make me a popular person outside of the bitcoin space sometimes, but its just that Ive been here for a while. Ive seen this.

Weve all seen this in the bitcoin space. Theres no project thats going to succeed at the rate we are going, m besides bitcoin. This is probably the one and only chance we have of having a blockchain work, which its great because its working well and when theres problems, we fix them. Thats how it works.

If you have some questions or you have some comments, leave them in the box below. I always like to see them from you and subscribe to the channel, if you like what you see. Later, party people. Oh man, I could go for some lunch.p

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