- Bitcoin is the king of cryptocurrencies, as evidenced by its asset class controlling the majority of the crypto market.
- has held this title for more than 12 years. Some experts believe that another cryptocurrency will replace Bitcoin as the dominant force.
- The lack of smart contract functions and the reliance on the proof-of-work consensus mechanism are factors that hinder Bitcoin's continued dominance.
In 2009, the mysterious Satoshi Nakamoto created the Bitcoin network after mining the genesis block. Since then, blockchain technology has taken off and multiple projects have been launched to improve the foundation laid by Bitcoin. Despite the best attempts, Bitcoin still remains at the top of the rankings, controlling 43% of the market and having a market value of close to US$1 trillion.
Bitcoin's dilemma
Over the years, the list of the top 5 largest cryptocurrencies has undergone constant changes, projects have been cut, and the ranking has also fallen. However, Bitcoin has maintained its leading position since its debut. Some analysts believe that Bitcoin may become an "altcoin" in the future, and the ranking may even fall to third or fourth place.
Proponents of this belief cited Bitcoin's apparent lack of advanced smart contract features as the reason for the slip. Decentralized finance and applications rely on smart contracts to run smoothly, and their rapid popularity in recent years has made Bitcoin a missed opportunity. Due to its advanced smart contract features, Ethereum is touted as the project most likely to flip Bitcoin. Ethereum currently has more than 3,000 Dapps built on the network and supports a large number of DeFi and NFT carnivals.
Compared to newer blockchains, 10 minutes of Bitcoin block time is considered slow. Since speed is a major determinant, a blockchain built with speed in mind may threaten Bitcoin. In addition, the pure computing power associated with the proof-of-work consensus and the environmental issues of Bitcoin mining cast a shadow over the continued dominance of assets.
Can Bitcoin still persist?
Although far from perfect,But Bitcoin still has certain factors. First of all, the network has a first-mover advantage and is the most popular cryptocurrency in the world. A country like El Salvador has begun to take measures to recognize its legality currency and other countries may induce to follow.
Bitcoin's role in 's hedge against inflation is satisfactory, and the development of the Lightning Network provides answers to speed and scalability issues. In the turning point of fate, there is still Taproot Upgrade on the network card. This is a major technological update that will improve the privacy of the network.
However, unless Bitcoin combines smart contracts, DeFi, Dapps and NFTs, it will be a difficult task to maintain its leading position over other cryptocurrencies. Ethereum is closing the gap with Cardano, and some people are tinkering with the theory that stablecoins will eventually lead.
The cryptocurrency market usually follows the ebb and flow of the dominant asset class. When Bitcoin rises, altcoins follow the trend, which makes the top spot enviable. For investors, supporting the right altcoin may be similar to hitting gold. To replace Bitcoin, the project must have diversified practical functions and have the same global appeal as Bitcoin.
personal opinions are for reference only. [Like+Follow] @quantified robot 苏文衣
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