Why only Bitcoin matters in crypto

I’ve previously bashed Bitcoin Maxis a lot, I just deleted those posts. Let me go on to elaborate what I’ve been researching on crypto vs bitcoin so far, and let me know where you stand on this issue. This post goes into detail why I think Bitcoin is a priceless asset, while altcoins may end up being worthless in the future.

First, let’s talk about Bitcoin.

I’ve been reading Bitcoin books, watching Bitcoin conference speeches, and trying to understand how much exactly this asset can be valued. A rhetoric I’ve been hearing over and over is that no one knows exactly how much Bitcoin should be valued. Some say the entire world economy could one day be Bitcoin’s market cap, and others say it’ll go to 0. Some are saying that as Artificial Intelligence advances, the currency that AI would actually want to accept is Bitcoin compared to fiat because AI would be smart enough to realise is that fiat depends on monetary policy and the work it’s doing will not always be equivalent to the fiat it receives in payment. So since AI is so transactional and applies logic to every decision, logic dictates it only accepts Bitcoin as payment because Bitcoin’s the hardest money ever created (read the whitepaper), and the hardest money there will likely ever will be.

So in the future if you want AI to work for you and not you work for AI, I think you should start stacking sats. That’s not the only thing that convinced me of Bitcoin. The culture behind Bitcoin right now is that, if you examine the history of all money, all the other kinds of money are perishable and will not exist throughout space and time for eternity. Bitcoin will, and that’s a fact. So when you have an asset that can exist across time and space infinitely, it’s very easy to make it the de-facto standard of money for the entire world economy. Right now the world economy is currently at $115.5 trillion, Bitcoin is only about 1% of that. When you have an asset that will exist forever, is decentralised, is hard to create, incentivises the securing of the network insanely well, then what you have is an asset that can be used as the standard to value the entire world economy.

By 2045, the world economy is estimated to grow until $228.7 trillion. Is bitcoin was 25% of that, Bitcoin will have a market cap of $57 trillion. That’s a 50x increase. Now I know what you’re thinking. Why wait 20 years for a 50x increase when I have a shot at 1000X increase gambling on altcoins? But keep in mind that this is a conservative estimate of the world economy in 2045. It doesn’t take into account the massive amount of value that AI will bring, along with the fact that billions of people will start living in first world societies and creating much more value as countries around the world start to industrialise at a rapid rate. This is not even considering the potential space industry on the moon and mars. On top of that, when you have an asset that never gets destroyed, and an economy run on AI robots that only consider Bitcoin as currency worthy of their time and services, this 50X could easily be 5000X or 50,000X depending on the scale of growth of innovative industries and how much humans are going to rely on AI in the future. There’s many other reasons why I think Bitcoin will grow so much. When you have an asset that’s the perfect kind of money, people don’t know what to value it as.

There’s a likely chance it will valued so high in fiat that future humans consider the fiat USA dollar completely worthless compared to Bitcoin because 1 Bitcoin will be worth hundreds of millions or billions of dollars, just like how the Zimbabwe dollar is worth so little compared to the USA dollar because of hyper inflation. When you don’t know how to value an asset, its value is infinite and will scale as humanity’s progress scales.

Now why do I think investing in altcoins is worthless? I think blockchain technology is extremely useful and has many different use cases beyond just bitcoin, but the fact of the matter is that Ethereum or Chainlink do not make good investments because you are investing in protocols that do not have any obligation to generate a net profit. Ethereum will always be Ethereum (a decentralised smart contract platform), regardless of how much the ETH token is worth. A larger Ethereum network does not necessarily justify a higher ETH token value because while the network’s use cases and projects increase, there is no net profit generate via fiat or some currency. No earning, no nothing. It’s comparable to investing in the World Wide Web HTTP protocol. HTTP gives users a way to interact with web resources such as HTML files by transmitting hypertext messages between clients and servers. This is similar to what Ethereum and other cryptocurrencies do.

You are essentially investing in HTTP when you invest in Ethereum and other cryptos, and they could end up worthless because usage of HTTP is free. Cryptos in various blockchain projects definitely have uses, from DeFi to Web3 to RWA tokenization, but that doesn’t mean the crypto tokens itself should cost any money. Tokens are worthless, and the only reason they have any value is because people saw Bitcoin and thought these tokens also have value. On top of that, many blockchain projects use fancy words to describe their projects when, if you look closely, they are very similar to other more established projects with only 1-2 minor things changed. This does not justify a higher price (or any price for that matter). And of course, because of this fact, many people take advantage of people’s gullibility in investing in any projects and thus do tons of scams and memecoins etc.

Anyways, this is my recent revelation on this whole crypto industry. Leave your thoughts below.