It is easy for those of us in cryptocurrency to hone in on different things and miss the bigger picture. This is something that comes natural to us humans as we become immersed in something. That is why I try to step back one in a while to keep things in perspective.
I am recently coming across a lot of postings online that fall under the category of "Bitcoin Maximalism". For those who do not know what this is, basically it is the view point that all alt-coins are garbage; there is Bitcoin and nothing else. The only reason ever to own an alt-coin is to trade it to get more Bitcoin.
Essentially, Bitcoin is going to be the only currency and it will dominate the Internet.
I personally think this is a pretty naive view. Now, I am optimistic about Bitcoin and can see the argument for some of the insane price points people throw out there. That part I do not debate.
What I do contest is the idea that there will only be Bitcoin and it is going to be the only one of value. Taking this approach misses the bigger picture.
It is vital that we remember what is being constructed at this point. The foundation is being laid for the next generation Internet. Web 2.0 is going to give way to Web 3.0. An entirely new Internet is going to form that is spatial, ubiquitous, and tying in a multitude of developing technologies. It is much bigger than just a new payment system.
Bitcoin maximalists looks at this technology only from the financial perspective. To them, it is new money. This is not completely incorrect but it misses the point of disruptive technologies. It is not the first generation replacement that is the game changer. Instead, it is the second and third layer that really alter things.
The computer replacing the typewriter was a major step. However, all the things the computer evolved into, including devices that are put into the body like a pacemaker is truly transformative.
This is where development enters the picture. Bitcoin, for all its strengths, does not have the same development as other blockchains. What is taking place on bitcoin, for the most part, is focusing upon payments. The core idea of the token is that it is tied to financial transactions.
Alt-Coins focus upon something different. While Monero, ZCash, and Litecoin are like Bitcoin, others represent something different. They are centered around the idea of applications. Again, as more is developed, people are going to gravitate towards cryptocurrency. Why do I state this?
My logic is rather basic: if given a choice to get paid for doing something versus not being paid, people are going to opt for being paid. Here is where one of the basic pieces of Web 3.0 is seen.
We see it phrased many ways but it all comes back to the same point. Our attention is worth something and the present system does not reward that. Web 3.0 is going to operate with this component.
Bitcoin is not jumping on board with this. While the developers are focus upon scaling and layer 2 solutions like Lightning Network, both worthy projects, other blockchains are concentrating on providing users with other solutions.
Why would a company like Tesla go out and buy a bunch of Bitcoin to reward its vehicle owners for providing its with data? A company like that is going to leverage its existing name by creating a token for itself. This will then be expanded out to be used on its ride sharing platform. Ultimately, the token can be used to purchase service, accessories, and maybe even other vehicles.
Ultimately, I do agree that Bitcoin will always have the largest marketcap. That said, I do not believe it will remain at 50%. My belief is it will settle in the 10% area, give or take a few points.
The rest will be made of up alt-coins. The attraction to these will not be the transactional aspect of things as much as the applications people can use. Web 3.0 is going to be a very large part of our lives. Think of the day when you will be paid by someone to use your medical records for research. That is going to be done in some form of an alt-coin.
Security tokens are also another huge innovation that is going to become mainstream in my opinion. Having the ability to use smart contracts is vital for this. We are going to see billions of NFTs representing everything under the sun. While some like a commercial building might be on a main chain, think of a NFT representing something in a VR game. Who knows where an asset like that could be housed.
What is exciting about how things are unfolding now is we are seeing a bunch of development taking place. As this expands, so will the reach of the entire blockchain world. Enterprise chains are getting a lot of attention from the media right now but, my sense, the true innovation is happening in the world of decentralization. This is where the open nature of things is an advantage.
It is easy to look at the present situation and believe things will continue forward in this manner. Right now, Bitcoin is kicking the snot out of every other cryptocurrency out there. It is, by far, the best known and receiving most of the money coming in. Everything is falling further behind the leader.
That will change. My outlook is that people will not enter cryptocurrency as speculators or investors. Instead, the masses will flock as users. Their entry into this realm simply will be the result of finding something they enjoy that rewards them. It is then that they will come to understand their attention is worth something.
Bitcoin was revolutionary when it was introduced. However, it pales in comparison to what we are going to see with the totality of Web 3.0. At this point, the innovation that is taking place on the alt-coins will, most likely, have a bigger part of the future Internet than Bitcoin.
Bitcoin does and will excel at sending and storing value. The world of applications, it appears, will mostly come from elsewhere.
Generation 1.0 always gets a lot of attention but keep an on eye the future iterations. That is where the true technological power resides.
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