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5 Reasons Why Bitcoin Will Eventually Be Dethroned

CryptoWhale
CryptoWhale
While Bitcoin has undoubtedly been the pioneer that layed the groundwork for the birth of the entire crypto industry, that doesn’t necessarily mean its long-term success is guaranteed.
First Isn’t Always Best. Do we still use the first phone, currency, or the first computer invented? No, it eventually gets replaced by technical advancements that are more efficient, realistic, and most importantly, more innovative.
While many Bitcoin investors claim that BTC will forever remain at the top, this speculation isn’t backed by logical thinking, but rather wishful thinking. Based on historical and fundamental trends, Bitcoin’s dethronement is not a matter of “if” but “when”.
Outdated Technology
With rapid changes and innovations happening daily in the crypto space, Bitcoin’s technology can be considered a piece of ancient history.
In the traditional sense, for a company to survive, it needs to be continuously improving in order to match consumers’ quickly-changing demands. With Bitcoin, it hasn’t changed, and remains as sluggish, and poorly utilized as when it was first invented in 2009.
Since then, there have been over 11,000+ new coins on the market.
While 99% of them are worthless, this still leaves a handful that enables greater anonymity for users, faster transaction processing, and more sophisticated technical features that facilitate the automatic processing of complex financial transactions.
And finally, we all know the insane amount of carbon emissions produced from BTC mining. Why would society opt for something that has disastrous environmental effects, when the technology to eliminate that feature has existed for years and is commonly used in many other tokens.
Cult-Like Behavior and Ignorance
To be clear, I have full respect for the Bitcoin community. The majority of them are just innocent investors trying to protect their wealth from the debasement of fiat currencies, a result of excessive quantitative easing.
When I first got involved with Bitcoin, the majority of the community valued facts and were open to discussing a range of topics regarding its benefits, and flaws. Nowadays, we have a new generation of Bitcoin maximalists (Pomp, Saylor, Dan Held, Max Keiser, and others) who tame their sheep with lies.
Out of every investment on earth, Bitcoin may easily have grown into the largest and most ignorant cult community ever. Anyone with any outside thoughts is automatically shunned, and branded as a “scam artist” or “enemy” — even if they’re just trying to provide a simple opinion or ask a question.
Bitcoin is in a dangerously overvalued bubble. Say that to a Bitcoin maximalist, and watch them cry about “FUD”, then make up fake rumors about how you’re being paid by the banks or some weird conspiracy.
Fueled by Fraud, Deception, and Lies
If Bitcoin’s growth over these past few years was anything natural, I would be overwhelmingly bullish, and euphoric for its future. It would symbol a large demand shift towards Bitcoin.
Unfortunately, nothing about this bull run was authentic. For BTC to hit $64,000, Tether had to print billions of unbacked USDT each day to manipulate the prices upwards. This key fact is often overlooked by crypto investors, but its effects will be hard to ignore once they implode.
Tether hasn’t printed anything in over 2 months as regulators issue dozens of warnings about their fraudulent company and mysterious executives.
The ticking time bomb is closer than ever to exploding.
Bitcoin Maximalists Peddling Fake Rumors
Since Bitcoin topped out in April, we’ve seen a substantial correction with heightened levels of fear and panic. To counter this, Bitcoin maximalists have started a campaign of spreading fake and misleading news to their sheep.
These fake headlines such as “Amazon is adopting Bitcoin!” are aimed at luring in retail suckers, so the moon boys and maxi’s can dump on them at higher prices. They know we’re in a bear market, and after not getting out on the top, they want a second chance.
This will result in large losses for investors who are easily manipulated by these deceptive individuals. Remember: Don’t trust, verify!
The truth always prevails. While the majority of crypto users are unaware of the deception, fraud, and lies happening behind the scenes, all will be revealed in the near future. None of this is sustainable.
Scalability Issues and Fees
The growing user base is naturally accompanied by a constantly increasing number of daily transactions, which are now counted by the hundreds of thousands. The unfortunate reality is that the Bitcoin network, in its current state, is unable to process all those transactions fast enough.
Putting everything else aside, this sole reason is why Bitcoin will almost certainly be dethroned and replaced by something better in the future.
Bitcoin processes less than 4.6 transactions per second, while Visa does around 1,700+ transactions per second on average. Even with less than 1% of the world having dabbled in Bitcoin, we’ve seen so many instances of scalability issues, imagine what would happen on an even larger scale?
The Lightning Network — Bitcoin’s mythical response to scaling faces many unknowns before it can be implemented on a large scale. More testing is necessary before it can foreseeably address some of Bitcoin’s shortcomings.
For years, Bitcoiners have touted this centralized and misleading idea as a red herring to distract investors from their slow, and outdated tech. If Satoshi was around, he would adamantly disapprove of the lightning network.
Don’t get confused. The Lightning Network isn’t Bitcoin.
Market Trends Not Good for Bitcoin
While Bitcoin was the main cryptocurrency to dominate headlines in 2020, and some of 2021 for its rapid price increase, that doesn’t mean it found the most success. In fact, data shows that Bitcoin is one of the worst-performing cryptocurrencies on the entire market for the year.
98% of altcoins saw much larger gains this year, which says a lot. People are less focused on Bitcoin and more focused on alternative cryptocurrencies.
Realized cap HODL waves show the momentum for Bitcoin is drastically dropping during each bull market cycle, with long-term HODLers abandoning their bitcoins to short-term HODLers and those short-term HODLers shuffling their new bitcoins to even more recent buyers.
You can see this in the chart below, which lumps short-term HODlers into colored bands. The shortest-term HODLers, 24 hours or less, are at the bottom and 1–3 month HODLers are at the top. The peaks are circled.
One thing Bitcoin bulls refuse to mention is the fact that every single Bitcoin bull market to date has seen smaller and smaller growth. This bull market is ranked the smallest one to date, which comes to no surprise.
A quick glance at the Bitcoin dominance index chart and you’ll see that ever since altcoins were introduced in 2014–2015, they’ve been slowly eating away at Bitcoin’s dominance. Alts will eventually overtake Bitcoin in my opinion.
Conclusion
As the trend shows, Bitcoin will almost certainly be branded just another altcoin once something better eventually takes its place in the future.
For the last few years, those who have bet on Bitcoin have seen fewer gains than the rest of the crypto industry. Coins like Ethereum are now closer than ever to surpass Bitcoin’s market cap, which once surpassed, would usher in a huge wage of uncertainty for Bitcoin holders.
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CryptoWhale
CryptoWhale @cryptowhale

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