Many people think that Bitcoin only has “first mover advantage” in it’s corner, and given that virtually all new cryptocurrencies are technologically superior to Bitcoin, eventually one of them will overtake it in price one day, invoking the fabled “Flippening.”
Every second the Bitcoin network generates about 10 hashes for every grain of sand on the planet. This is only because the price is so high, incentivizing many miners to run the software. If we could put that kind of power behind a future Ethereum (let’s not talk about current scalability issues) we could solve global problems and usher in a new technological age, instead of just throwing a historical mount of computing power into simply finding hashes and getting rewarded for mining blocks.
I, however, disagree with the notion that just because other cryptocurrencies are more scaleable, cheaper in terms of fees, faster to transfer, or the fact that you can actually run meaningful code and power the world’s first decentralized supercomputers on them, that they can can possibly every trade at a higher price than Bitcoin.
I believe there are plenty of ways to use these cryptocurrencies, just not as money. The thing with money is that in order to be money, you have to already be money, or a force backing you must impose it’s will via political or military might. All other cryptocurrencies have value mostly because of Bitcoin’s historic price rise, which we can see whenever the price swings in either direction. The entire cryptocurrency market (sans stable coins) is tied to the price of Bitcoin, but any one cryptocurrency can gain or lose value in a dramatic way without the Bitcoin price being affected at all.
Bitcoin has been money for over 10 years, ignoring the price speculation, anyone who has put value into Bitcoin (and left it there for a bit, for Pete’s sake) has been able to extract value back out of it for over 10 years. Gold has been doing this for millennia, so please stop saying to “drop gold” or “short the banks” – you’re not helping.
None of these newer cryptocurrencies can tout more than a few years of value storing, but even if they could, the vast majority of why they can store value in the first place is simply because Bitcoin is doing it so well.
I would love for someone to explain how I am wrong, as I am very excited about the future of blockchain technology and can’t wait to see projects like Ethereum and EOS solve global problems through distributed supercomputing, I really want them to succeed and thrive.