Bitcoin unsurpassable: This is due to the advantages of its network effect
The first is the currency holder. Bitcoin currently has the largest user base in the entire blockchain world, with millions of people holding Bitcoin. These users have the incentive to promote Bitcoin because they have Bitcoin. For example, some people say that Bitcoin has been going up. Some people have said that they don’t have $1 million in real-time or something like McAfee and Erbao. The more coins there are, the more motivated to promote them. In turn, those who do not hold BTC will generally choose to sing.
In addition to users, there are also some currency-holding investment institutions, such as independent funds like GBTC, which are said to hold btc worth more than $1 billion.
Also, in the field of blockchain today, there are two places where people flow most, one media and one exchange. The Exchange currently basically has Bitcoin for transaction pricing. In this way, it creates large-scale market liquidity. This mobility will lead to more people entering the network of the encrypted world.
There is also the attention of mainstream media. Every time supervision and bitcoin currency prices rise, it will arouse the attention of mainstream media. As the king and representative of blockchain, there are many bitcoin users, and even if there are negative reports for each news report, It will also let more people pay attention and join in. In many people’s eyes, Bitcoin is equivalent to encrypting digital currency.
Bitcoin has billions of dollars worth of transactions each day. The two days are worth more than half a billion dollars and have better liquidity. Bitcoin has begun to have derivatives, which will promote the enhancement of bitcoin network effects.
Bitcoin, as a representative of value stored value, will also benefit as soon as other digital currency assets rise, which further increases its network effect.
In addition, forked dividends, especially last year, Bitcoin became the most popular airdrop target, which also pushed up the value of Bitcoin, which in turn increased its network effect.
From the above phenomena, it can be seen that Bitcoin is still the king of today’s blockchain field, and its network effect value is temporarily inviolable. This also reflects its market value, which accounts for 45% of the total market value.
In the end, Bitcoin itself has completed its historical position. Many people are still struggling with Bitcoin. Its slow iteration, slow technological progress, slow delivery, high cost and high energy consumption, but Bitcoin still develops on its own track. It doesn’t need to be fast and the cost is too low. It is more of an attribute of value storage than digital payment.
Therefore, in terms of its uniqueness, it does not require tangling of performance and energy consumption. As long as it can guarantee relative decentralized security, it has its value. Its value lies in decentralization, security, and anonymity. It’s not about efficiency or performance.
There is no need to make Bitcoin entanglement performance issues
The powerful network effect of Bitcoin means that if newcomers exceed it, they must have greater network effects and a faster rate of evolution.This can happen only when tokenized assets reach a certain critical point.
2) Why does the tokenization of blockchain assets need to reach a certain critical point?
Although Bitcoin will have an advantage for a long time, with the development of the blockchain itself, especially with the rapid development of the second-generation blockchain represented by Taifang, everything is changing.
Ethereum has smart contracts that facilitate the crowdfunding of many projects and the tokenization of assets. The most important role of Ethereum is not only crowdfunding but also opening the door to the blockchain world. It inspired a lot of people’s imagination and began to no longer be just a digital currency, but based on the trust of the machine.
With Ethereum and other public chains, with smart contracts, the speed of tokenization in the entire world has accelerated. Of course, today is still in a very, very basic stage. How many truly tokenized assets are there now? In addition to previously encrypted cat games (but not subject to the Ethereum’s performance, unable to expand), there is almost no token assets that really landed.
However, this does not mean that there is no way to tokenize. At present, the entire blockchain world, public infrastructure and other infrastructures are still not perfect, regardless of consensus mechanisms, governance, privacy, cross-chain, etc., there is still much room for improvement. Problems such as performance, scalability, and transaction costs have also caused headaches for everyone.
The current infrastructure is like a muddy dirt road. It is no use to run Ferrari on it. But in time, the road will become better and wider.
Once the infrastructure has been repaired, shopping malls, supermarkets, restaurants, gymnasiums, game rooms, etc. will all continue. The maturity of the public chain facilities will bring the Dapp eco-prosperity, which will produce a market far larger than Bitcoin.
Because of Dapp’s prosperity, tokenization of assets will increase. With Dapp’s boom, the public chain’s network effect will evolve at a very rapid rate. The boom in Dapp brings increased tokenized assets, leading to increased demand for digital transactions and payments. Exchanges or wallets may become the entry point for the blockchain value world. The tokenization asset reaches a certain critical point. The mainstream people begin to accept tokens, tokens need a stable currency or other tokens to pay, and this will become a big entrance; finally, the increase in interoperability between different chains will become a cross-chain Important needs.
Therefore, in the end, as long as the blockchain industry is developing, bitcoin will certainly be exceeded/surpassed. If it cannot be surpassed, then it means that blockchain is not a real industry.
Who will surpass bitcoin?
Public chain
For example, Ethereum or other public chains, whether through fragmentation, side chains, subchains, or other new consensus mechanisms, ultimately achieve scalability, low cost, and high performance while ensuring network security.Then, a public chain bearing hundreds of thousands or even millions of tokens was born. It is truly a king.
2. Cross-chain
Cosmos, Polkadot allow cross-chain transactions. If it is easy to realize the value interaction between all chains, then it will have a huge user base, and it will also have the chance to achieve a far greater network effect than Bitcoin, thus realizing the transcendence of Bitcoin.
3. Stable currency
The stable currency such as Basecoin or makerdao may have new ones in the future. With the increase of digital tokens, besides investment/speculation/arbitrage, people’s risk of volatility is unacceptable, and stable currencies such as basecoin will become a measure of The standard for calculating the value of tokens, if it is successful, then it has the function of issuing currency. It does not rely on any institution, only relying on smart contracts to adjust the issuance or destruction of tokens. With more digital currency, the more demand for stable currencies, when it reaches a critical point, surpassing BTC is naturally a matter of course. This is the real king of digital currency.
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