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In terms of adoption, Bitcoin remains unrivalled. However, numerous other blockchains have exceeded Bitcoin in terms of network functions and scalability over the years.
Because it is currently 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 dangerous, have the potential to give higher profits due to their exponential spikes. As a result, it’s no wonder that many young risk-takers prefer these.
That is not to say that Bitcoin has lost any supporters, however, with a host of reasons encouraging proponents to stick by it. Macro-investment strategist Lyn Alden highlighted some of these on a recent podcast, focusing on why Bitcoin is fundamentally different than all altcoins.
In contrast to precious metals, an infinite number of comparable blockchains can now be built. People may even consider this as a danger to Bitcoin because it may dilute the intended scarcity established by its limited supply.
People, however, don’t comprehend 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 excellence 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 convey his perspective. Reproducing the website’s content or source code would not generate the same amount of visitors as the original. She continued,
“I can copy all the texts that’s there, but I can’t copy the network effect… and millions of links around the internet pointing to the real Wikipedia. And I can’t copy the active user base that constantly updates Wikipedia. Bitcoin has that network effect.”
The Lightning Network, BTC’s layer 2 payment platform, can only be expected to enhance its already superior network effects.
“And so BTC now has multiple layers of network effects built on top of it. The security is higher. The development is more secure, and there are features being built on top of it.”
According to Alden,
“Overall, that’s what separates Bitcoin from other tokens, and it’s mainly why we view that one as money and everything else [as], at best, equity or at worst, a scam, compared to Bitcoin itself.”
The investor was also eager to point out that the hardware is on Bitcoin’s side. There are several wallets and services that specialise solely to BTC, as well as those that support a variety of tokens. This provides the leading virtual currency with a “larger type of surrounding ecosystem.”
Nonetheless, Bitcoin’s strength in these areas cannot overshadow the ground-breaking performance of other 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 regular network updates.
This has even led some to anticipate that the crypto-community will see an altseason.
It should be emphasised that an alt-month is already under progress. Over the last 30 days, 88 percent of the top 50 coins outperformed Bitcoin.
As shown in the attached chart, major altcoins like as Bitcoin Cash, Solana, ADA, and Luna have given Bitcoin a run for its money, with some achieving gains of up to 300 percent.