There are many phenomena in the process of studying blockchain projects. Based on these phenomena, we can ask some questions. Some questions do not necessarily require correct answers. The correct answer is only when it happens, but we can try to get close to it. In this process, we can deepen our understanding of blockchain and digital currency projects.Bitcoin unsurpassable for and you will soon learn why. We all know that btc has always been the king of the blockchain field and has been imitated and never surpassed.
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Bitcoin unsurpassable: Reasons from the market value point of view.
First of, From the market value point of view, until today, btc also accounted for about 45% of the market value of the entire blockchain, and the entire digital token market, there are statistics on the coinmarketcap has reached 1597. Even if so many newcomers are born, the position of BTC is still firm. According to today’s market value, btc is still more than three times bigger than the second ethereum.
Secondly, BTC unsurpassable even as many people is not optimistic about BTC. Some think that btc is slow, transfer fees are high, waste of energy, in short, a lot of shortcomings, no future prospects, some people think that bitcoin is simple, elegant, safe, it is worth having. Anyway, Bitcoin has so far gained the most supporters from the community consensus point of view. So that some of the profits earned by some people from competing currencies are all replaced with Bitcoin.
Btc was designed from the very beginning to be a peer-to-peer electronic payment system. However, from today’s point of view, from the perspective of the main chain, it is basically impossible to satisfy the micropayment scenario. That is, it is basically impossible to be consistent with the initial goal.
In addition, the blockchain technology abstracted out on the btc basis has seen new developments. Ethereum’s smart contracts opened a window for crowdfunding and directly triggered the entire blockchain financing market.
However, up till now, Ethereum is still unable to break its bottleneck due to its performance and transaction costs, and it is unable to establish its own ecosystem for decentralized applications, and it still stays at the stage of crowdfunding.
BTC overtaking has a high probability event
For any coin to overtake or surpass BTC, such coin must meet the two prerequisites below:
1) It takes a long time to evolve faster than the BTC network effect
2) Tokenization of real assets in the blockchain needs to reach a certain critical point (the specific critical point is there, do not know)
Why does it take a long time? Why do I need to have a faster evolution than BTC?
The reason is that the current network effect of BTC is very powerful.
The value of blockchain assets ultimately depends on the network effect. This is why people often emphasize the importance of consensus. Blockchain technology is not a threshold in itself, at least not an insurmountable threshold. The biggest threshold is the consensus of the community. This is why we can see some incredible items in the top 20 market capitalization.
The network effect has played a role in the Internet era, such as social networking and the sharing economy. Finally, the winner takes all and the Matthew effect. In the era of the blockchain, whether it will achieve such a concentrated network effect remains to be seen.
However, the network effect is still the most important source of the value of blockchain assets. Although Bitcoin is considered by many to be a continuous community dispute, poor governance, slow changes, and high energy consumption, Bitcoin remains undefended.
This is also because of the value of Bitcoin’s own network effect. This network effect makes it still occupy the position of the king in the next few years.
Although eth, bch, ada, eos, etc. all tried to have a better performance, at present, from the network effect point of view, there is a very big gap.