Cameron GrandPre Follow Mar 26
· 3 min read
Bitcoin is the original ‘cryptocurrency’ & the first decentralized, digital currency to take root in global markets.Since its inception in early 2009, it’s been on a steady path towards global recognition, acceptance and mass adoption.
Being that Bitcoin runs on open-source code that’s readily available for anyone to analyze and replicate, thousands of other cryptocurrency projects have been created in its wake.Each of them aiming to tweak some aspect of bitcoin’s code to optimize it for more specific use-cases.
Some of these projects are incredibly innovative and have spawned new markets and financial efficiencies.Others are outright scams.
Most fall somewhere in between.
The Bitcoin Maximalist Investor Class There is an increasingly growing class of digital asset investors known as Bitcoin Maximalists or Bitcoin Maxi’s for short.These investors believe that the only true innovation in the ‘crypto’ space lies with bitcoin and that all monetary value will eventually accrue to the original blockchain.Bitcoin Maximalists look at all other cryptocurrencies as outright scams, frauds or doomed to fail over time.They ONLY buy, hold and use bitcoin.
Now by no means would I describe myself as a Bitcoin Maximalist but I would say that I’m a Bitcoin Centrist.
I believe Bitcoin to be the most important innovation in the space and the only true option to building a monetary foundation around.Bitcoin is the center of this new financial universe & provides its users with the risk-free rate of return for the idea of digital scarcity.Here’s why:
3 Reasons Why Bitcoin is the Only Financially Prudent Digital Investment 1.By definition, true digital scarcity can only happen once.Every other cryptocurrency is a form of derivative on bitcoins founding innovation of digital scarcity.Certain cryptocurrencies may provide better returns when compared to bitcoin on shorter timeframes, but the core growth of the cryptoeconomy is due to the founding principle of any financial market.Scarcity.Bitcoin is the only digital asset with true monetary scarcity.
2.Bitcoin is unstoppable and unchangeable.
When a new currency and financial network built on decentralized rails takes root, it eventually reaches a point of becoming unstoppable.Bitcoin in its early years could’ve likely been stopped or shut down.Stopping bitcoin today, would require a globally-coordinated mass shutdown of the Internet.Even then, when the Internet went back online, bitcoin would likely pick up right where it left off.Likewise, Bitcoin is unchangeable.There have been dozens of bitcoin spinoffs like Bitcoin Cash, Bitcoin XT, Bitcoin Classic, Bitcoin Gold, Bitcoin SV and others in a process known has hard-forking.
Essentially, they use the core bitcoin code and tweak it to optimize for transaction throughput, speed or privacy.
ALL of them have been on a steady downward trend towards 0.The core rules of Bitcoin CANNOT change because if they did, it would no longer be bitcoin.The world changes for bitcoin.
Not the other way around.3.Bitcoin provides the risk-free rate of return for the digital economy.There used to be a time when prudent financial advisors would recommend a client position 60% of their portfolio in equities and 40% in ‘safe’ bonds & government treasuries.Nowadays with inflation at all time highs, owning 40% of your portfolio in ‘safe’ bonds is a GUARANTEED way to lose your wealth over time.Being that bitcoin doesn’t change, cannot be stopped and is built on a foundation of absolute digital scarcity ensures that there is no better risk-free option for investing in the idea of digital scarcity.And hence, it’s radical transformation of global markets.
The Role of the Financially Prudent Investor As the world continues it’s march towards the digital economy, our definition of risk-on and risk-off assets will increasingly shift.With the world in the midst of massive change, rules are being rewritten.The role of the prudent investor is to find the rules that don’t.
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