A Look at Bitcoin Maximalism

June 28, 2022July 2, 2022 Adam 196 Views 0 Comments 5 min read

The most well-known cryptocurrency in the world, Bitcoin, is considered by Bitcoin maximalists to be the only digital asset that will ever be required. Maximalists think that Bitcoin is superior to all other digital currencies. According to the maximalist worldview, other cryptocurrencies do not adhere to the standards set by the anonymous Satoshi Nakamoto, who founded Bitcoin in 2009.

Unlike government-issued fiat currencies, which are controlled by a single entity, bitcoin is decentralised. The transactions are shared with participants and transparent because Bitcoin is decentralised and its blockchain is a publicly distributed ledger.

Despite being a widely traded digital asset, Bitcoin has also sparked the development of numerous new cryptocurrencies. These other cryptocurrencies, in the opinion of Bitcoin maximalists, are unneeded and subpar. The Bitcoin network, according to Bitcoin maximalists, will eventually offer what traders are looking for in a digital currency. In this sense, maximalists are shamelessly in favour of a Bitcoin monopoly in the future.

What makes Maximalists so Enthusiastic about Bitcoin?

A loud subset of Bitcoin backers known as the maximalists prioritise Bitcoin over all other digital currencies. Here are some of the arguments put up by maximalists on why they think Bitcoin will make all other cryptocurrencies useless:

Bitcoins Superior Network

Today, a large portion of Bitcoin maximalists agree that a digital currency’s success is reliant on the underlying blockchain network. It is a prevalent belief that the strength and length of a blockchain serve as the final barometer of success, despite the fact that different digital currencies may offer improvements to the fundamental design of Bitcoin that are intended to address network-specific problems.

According to this line of reasoning, the network itself is the most crucial element because Bitcoin’s network is so robust and because attributes of any given digital currency can be freely appropriated by another digital currency.

Bitcoin is Better Established

The idea that developing investor trust in new financial instruments must present a significant challenge is another justification for the maximalist viewpoint. Even though the use of digital currencies has skyrocketed, many major financial institutions and individual investors still prefer to stay away from the market.

The full integration of digital currencies into the world of conventional investing and finance, according to Bitcoin maximalists, will take time. The oldest, most well-liked, and most well-established networks will therefore likely receive the most serious attention from outsiders. The most well-known of the digital currencies is Bitcoin and the most secure trading is through bots like Profit Builder.

Bitcoin has a significant advantage over the dozens of brand-new, unproven digital currencies that are emerging because of its shown dependability and success. Bitcoin maximalists frequently view competing cryptocurrency networks suffering from hacks or other bad press as additional evidence in favour of their position.

The Benefits of Maximising Bitcoin

Network of Bitcoin

Bitcoin Is a Well-Known Currency

Altcoins are influenced by Bitcoin’s trading.

The idea of diversification within a cryptocurrency or larger portfolio serves as a concluding justification for the maximalist school of thought. Investing in altcoins may be a dubious method of diversifying one’s cryptocurrency holdings because the price of Bitcoin tends to affect the price of the altcoin world more broadly.

Reasons Maximalists Love Bitcoin

The value of Bitcoin is a major factor in why it is the most well-known cryptocurrency worldwide. However, that is hardly the only justification a maximalist would have for viewing it as its rescuer. Numerous other factors have a role in people’s decision to become Bitcoin Maximalists. The following list includes some of the causes maximalists adore bitcoin;

No authorization is required

Peerlessness is one of the main arguments in favour of bitcoin among maximalists. To transmit payments using bitcoin, you don’t need to get permission.

No confiscation is necessary

There is no way that anyone could ever seize your bitcoin assets if you have them in your portfolio. It is relatively difficult to track any individual’s holdings because of its anonymity.

Trustless

Most Trustless Payments are handled by financial institutions that have been trusted by the government. But using a decentralised currency like bitcoin for transactions is far better. You won’t need to have anyone else’s faith in this situation. Maximalists value it more since it gives them more control.

Capped from the beginning

Any product, including money and gold, has an unlimited supply. Bitcoin, however, is a completely unique circumstance.

Conclusion

In short, Maximalism indicates uncritical faith and confidence. Any money that isn’t under anyone’s direct control rises purely on the basis of belief. Maximalists in Bitcoin are essential to the currency’s development. Some even claim that Bitcoin’s devoted maximalist is to blame for the currency’s exponential ascent. Although no sources have validated this rumour, it is a highly conjectured topic.