You may have heard the term Bitcoin Maximalist being thrown around, especially on Crypto Twitter or certain Reddit threads. Some use it as an insult or while others proudly accept the title. Depending on who you’re talking to, the term Bitcoin Maximalist can be either positive or negative.
Who Can Be a Bitcoin Maximalist?
To be a Bitcoin Maximalist means that you believe Bitcoin is the one true cryptocurrency and all others are redundant, only taking away from the value of Bitcoin. In fact, what are commonly referred to as “altcoins” in the crypto sphere are unironically also called “shit coins” by Bitcoin Maximalists.
The belief that shit coins take value away from Bitcoin is derived from what is known as Metcalfe’s Law, or the network effect. This law can be used to denote the value of a variety of different networks, from social networking to telecommunications to the internet itself. It is expressed as n(n-1)/2, which shows the number of possible unique connections in a network, with n representing each “node” or user.
The idea is that the more unique connections a network has, the more value is added to that network. So, in theory, the more alt coins are developed, the more nodes or users are taken away from Bitcoin’s network, therefore devaluing it. While Metcalfe’s Law does have both logic and merit, it doesn’t quite justify the “one coin to rule them all” stance. It assumes that just because a user backs or uses an alt coin, they are no longer invested or heavily involved in Bitcoin. This just isn’t the case. Bitcoin is the oldest and most well-known cryptocurrency, and it is unlikely that a person buying into an altcoin isn’t already a part of the Bitcoin network or plans to abandon it.
Altcoins vs. Bitcoin
Another important point to note is that competition at the right level can bring about innovation. Still, when a market becomes overly saturated with similar products, they begin to branch out into specific niches and specializations. This often leads to one of two things. Either the market itself becomes very diverse, and there is no longer great competition between products, or you end up with a market full of similar but slightly different products all competing for the same market.
In the end, where you decide to put your faith is up to you. As long as you do your due diligence and make sure you’re aware of what you’re getting into, there are no right or wrong answers. The key is to make sure that whatever you are investing in, and however you choose to invest, be it spot trading or contracts, you are doing it on a secure, up-to-date crypto trading platform that has the user in mind – like Phemex.