Tuesday, January 16, 2018

Bitcoin, The Next Shitcoin

This will probably rattle up the BTC maximalists, but whatever. This is just my opinion and I'm just a random guy on the internet. Not happy with my conclusion? Laugh at me when I become poor.

I think many regulars readers know, I do not like Bitcoin very much.

I own it because I have to, not because I want to.

Bitcoin is the brand name that everyone knows and everyone talks about.
Bitcoin is the gateway crypto that allows for fiat-crypto exchanges.
Bitcoin is the base pair that allows for crypto-crypto exchanges.

But that's about it.

Bitcoin is slow. It takes ABOUT 10 minutes to confirm a transaction - if you pay the highest fees. Half the time it is even longer than that.

Bitcoin is expensive. It costs about $15 USD to make a single transaction, unless you want to wait.

The Bitcoin proof of work model ensures that Bitcoin will never be cheap and fast if it is popular. Same as all its bastard spawns, like Bitcoin Cash, Gold and even Litecoin. If this is the future of crypto, we're damned before we have even begun.

Everything that Bitcoin does, just about every competitor does it better.

I will give Bitcoin credit that it is decentralized though. But currently, decentralized to the point that it's broken and fragmented and almost at, or already past, the point of no salvation.

Ethereum is processing about 3-4 times the number of transactions than the Bitcoin network.
Yet, Ethereum has fees that is 90% lower, at $1.50 per transaction to be in the next block.
And this is when it is still using proof of work.

Ethereum will be upgrading from the madness that is proof of work to a more rational proof of stake. It is clear in my mind that the future of crypto belongs to the currencies that are NOT proof of work, and this goes for any hybrid model as well.

Ethereum has almost 3 times more nodes than Bitcoin.
Ethereum generates blocks 40x faster.

Ethereum has an entire decentralized application ecosystem on top of it to provide it with infinite use cases in addition to the basic rudimentary function of value transfer.

Of the top 100 tokens, 93 of them are running on the Ethereum network.
Of the recent ICOs, I'd guess that 90% of them were launched on the Ethereum network.

Ethereum is scaling up through off-chains, side-chains, proof of stake and sharding.

By the time Ethereum has sharding out, Bitcoin will already be an altcoin and the Bitcoin maximalists of today will sound like the goldbugs that we all hear of in the traditional space.

I am almost certain that Bitcoin WILL NOT be the premier and most valuable cryptocurrency in the near future.

Fret not young crypto noobs, your investments in BTC are still safe for now. ETH has problems scaling up and BTC has a final bullet left with its Lightning Network.

I did not switch allegiance just because recently BTC is losing dominance and ETH is hot on its tails. I've always shat on BTC as being inferior to ETH on multiple occasions. I've been a happy stacker piling up ETH while everyone was chasing BTC to $20k. I suspect that it'll be paying off bigtime in the not too distant future.

I've already placed my chips behind the horse that I'm betting to win in the long run (crypto time means 2 years). How about you?

4 comments:

  1. I love ETH the first crypto I bought @Gemini.I hv a target of $1800 by Dec.Very high possibility.

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    1. Hi Steven, I think we could very well exceed that target, especially so if any of the scaling upgrades go live on the mainnet. Crypto always surpasses my target and I'm super lowball.

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  2. ETH maximalist here too, but I don't think it is fair to compare both of them side-by-side as BTC and ETH serves different purposes leh. If we were to compare BTC for what it's worth - primarily as a currency - then XRB is a no-brainer with its zero fees and almost instantaneous transfers. Hey, it'll even shut all the environmentalists up (the ones who are protesting about how Bitcoin mining consumes a lot of electricity) once and for all ;)

    ETH should be compared to NEO instead as its closest competitor....by like a thousand miles. Oh wait, there's no fight there either :D

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    1. IMO it doesn't matter what was their designed purpose, but what are they actually being used for. While ETH is designed as a platform for dapps, it does whatever BTC does, faster and cheaper, and overall better.

      My recent analogy that I like to use is that BTC is like a Nokia phone that is sturdy AF and you can rely on to make calls and send texts. ETH is like a smartphone that can do all those basic functionalities, plus more.

      Who still uses a Nokia here? Hmmm.

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