Who is called Bitcoin Maximalist?
If you are in the field of digital currencies, you must have heard the name Bitcoin Maximalist. Maximalists radically believe only in bitcoin and think that the only cryptocurrency that remains in the future is bitcoin, and other digital currencies will disappear. They say that everything society needs are in Bitcoin. Follow us to the end of this article to get acquainted with their exact opinion and examine the reasons for their opinion and the obstacles and problems for Bitcoin.
What is Bitcoin Digital Currency?
(Bitcoin)Bitcoin is a virtual currency that gained popularity and prosperity when its price reached $ 13,000 in early 2018. This digital currency was a combination of creativity, overcoming legal barriers, and eliminating intermediaries in various financial and banking affairs that made financial transactions possible at the international level. Therefore, in the short time of his emergence, he attracted a lot of attention.
After “Bitcoin,” many cryptocurrencies were born that had similar features. Cryptocurrencies have great features and capabilities, which is why they have become so popular over the last ten years or so.
Cryptocurrencies operate in the context of large networks called “blockchains.” This network has a lot of users, and it is not possible to access and capture its data.
“Extensiveness,” “a large number of users,” “lack of possibility of network fraud and fraud,” and “lack of network monitor” make it a free and effective environment for communication activities in various fields.
More precisely, “Bitcoin” operates in the context of the decentralized network of the Chinese blockchain.
Definition of Bitcoin
Bitcoin and other cryptocurrencies are computer passwords that have a monetary value. Powerful computers generate these cryptocurrencies with high power consumption. Cryptocurrencies are also called “digital currencies.”
These currencies are a form of digital currency created by complex mathematical calculations. You may ask what “crypto” means in the word cryptocurrency, and where does it come from? The word is derived from “cryptography.”
Cryptography is a process that protects the creation of new coins.
The important thing about digital currencies is the lack of central oversight. Simply put, no government, institution, or body oversees these currencies and operates in a completely free, uncensored, and unhindered network.
Different governments still do not know how to react to digital currencies.
Some seek to limit its effects by banning it, while others try to understand it better and make the most of it by recognizing its features and capabilities.
A brief journey into the history of bitcoin
Bitcoin is the first digital currency. No one knows who made it. Of course, this is not new because most digital currencies are produced in silence.
The creator of Bitcoin is said to be a man named “Satoshi Nakomoto. ” It is not clear whether Satoshi Nakomoto is an individual or a group of people under that name who has created “Bitcoin.”
After the birth of cryptocurrencies, there was no news of Satoshi Nakomoto. Sometimes, other different cryptocurrencies, such as “Lightcoin Ethereum,” and Introduced to the world.
One of the main advantages of Bitcoin is that it can be stored offline on a certain piece of hardware. This is called “cold storage.” Despite the cold storage, the possibility of stolen cryptocurrencies is reduced to zero.
Cold storage is the opposite of “hot storage.” Hot storage is a type of storage in which data is stored on the Internet, resulting in theft.
What is Bitcoin Maximalist?
Bitcoin maximalists believe that Bitcoin, the world’s most popular digital currency, is the only digital asset needed in the future. Maximalists believe that other digital currencies are inferior to bitcoin. Maximalists believe that other digital currencies are not in line with the aspirations of Satoshi Nakamoto, who created bitcoin in 2009.
Unlike government-issued currencies, known as Fiat currencies, which are managed by a centralized authority, bitcoin is decentralized. Its blockchain is a public distributed general ledger (DLT); transactions are shared with participants and transparent.
Bitcoin Maximalist Philosophy
Although Bitcoin may not have been the first attempt to create a decentralized digital currency, it has undoubtedly been the most successful to date. Bitcoin maximalists believe that the Bitcoin network provides everything investors want in a digital currency.
Ethereum developer Vitalik Butrin commented on the maximalist idea of Bitcoin in 2014. Butrin went on to describe the views of the maximalists:
Their idea (maximalists) is that an environment of several competing digital currencies is undesirable and that setting up another cryptocurrency is wrong.
Reasons for Bitcoin Maximalist
Maximalists are a vocal group of Bitcoin advocates who see Bitcoin as superior to other digital currencies. The following are some reasons why maximalists believe that bitcoin deactivates all other cryptocurrencies.
Bitcoin Network
Many bitcoin maximalists today support the idea that the success of a digital currency depends on its underlying blockchain network. Because the Bitcoin infrastructure network is so strong, and because another digital currency can choose the characteristics of each digital currency, the digital currency network itself is the most important factor in distinguishing between digital currencies.
Bitcoin Cash and Bitcoin Gold have limited features compared to many new pennies. However, these coins are more valuable because they connect to the bitcoin network. Asset size, database size, and success history distinguish the Bitcoin network from other blockchains.
Bitcoin has been proven.
Another argument for Bitcoin’s maximalist view is that new digital currencies face high barriers to investor confidence. Although the popularity of digital currencies has grown exponentially, many large financial institutions and individual investors still rely solely on bitcoin.
The Impact of Bitcoin Trading on Altcoins
The ultimate argument for the maximalist philosophy concerns the high impact of bitcoin prices on other digital currencies. Because the price of bitcoin greatly affects the price of the world’s altcoins, investing in altcoins may not be a good way to diversify one’s digital currency assets.
This argument then concludes that investors should invest in the best assets, such as bitcoin. Instead of risking their money by investing in cryptocurrencies or other tokens. Also, increasing the price of bitcoins does not always increase the price of altcoins, and maximalists may argue that this is due to the low quality of altcoins.
Concerns of Bitcoin Maximalist
If Bitcoin becomes the only digital currency on the market, it must overcome its problems. Many altcoins and subsequent changes to blockchain networks are due to the limitations of the bitcoin network and its digital currency. Some of the challenges and limitations of Bitcoin include the following:
Scalability
Cryptocurrencies such as Bitcoin use the Proof of Work (PoW) process to verify transactions in their blockchain. Those responsible for verifying transactions and ensuring their accuracy are called miners. Miners act as network auditors by verifying the legitimacy of transactions and helping to prevent fraud.
As new transactions are added to the blockchain, copies of the transactions are sent to all nodes (nodes) that are participants and computers in the network. However, as bitcoin grows in popularity, transactions also increase. If we consider the blockchain network as a shared database, the more data is added, the more the system becomes involved and the more latency it leads to.
Trading fluctuations
Another challenge for Bitcoin to become a widely used payment method is that the price of this digital currency fluctuates sharply. If prices fluctuate too much, it becomes difficult for companies and individuals to use cryptocurrencies as a medium of exchange for day-to-day business transactions.
Smart contracts
In the early years, bitcoin applications were limited and did not provide mechanisms for building smart contracts and decentralized applications. A smart contract is a self-executing contract that includes the terms of a buyer-seller agreement that has been programmed.
Concluding remarks
As explained in this article, bitcoin maximalists claim. That any problem with the bitcoin blockchain is solvable and is currently under development. The fact that governments, companies. And investors choosing to block bitcoin over many other options is likely to determine whether bitcoin maximalists will ultimately win. However, given the investment in other networks and cryptocurrencies, it seems that there will be many digital currencies for years to come, and society has shown interest in other digital currencies as well.
