7/14 ANDY HOFFMAN (CryptoGoldCentral.com): Peak “Bitcoin Maximalism”
This is not a new topic for me, but after discussing it on yesterday’s MUST LISTEN “One-on-One” podcast with Simon Dixon – in my view, the top Bitcoin commentator – I want to re-address it today.
Which is, the silly notion, purported by so-called “Bitcoin Maximalists,” that Bitcoin will be the ONLY surviving cryptocurrency - which will perform ALL global cryptocurrency functions, for time immemorial.
Andy Hoffman (#HODLBTC) @Andy_Hoffman_CG
"#Bitcoin Maximalism" will dramatically change shortly, as the notion that #BTC will be the ONLY crypto has been disproven. It will be the ONLY crypto to be sound money, but countless others will have strong use cases - both practically, and as financial investments.
9:12 AM - 13 Jul 2018
Unquestionably, I have been one of the leading “Bitcoin Maximalists” since becoming a public figure in the cryptocurrency community a year ago. The only altcoin I’ve ever owned was a roughly 5% Litecoin position early last summer – which I sold for Bitcoin the day SegWit locked in. The reason being, that when fear of a network split ended, I saw no reason to believe Litecoin could outperform Bitcoin over the long-term…a view that was validated in spades when, two weeks later, the BCash fork launched the “crypto-dividend” phase of Bitcoin’s development – which I assure you, will NEVER accrue to Litecoin holders. And LOL, when Charlie Lee sold his Litecoin at the top – whilst admitting he ONLY holds Bitcoin – what better validation could there be?
That said, the concept of “Bitcoin Maximalism” has been ambiguous for some time. For some (like me), its principal “use case” relates to investing. To wit, whether one believes Bitcoin will be the ONLY cryptocurrency to survive or not, it has been - and still is - the safest to invest in. Yet, it still has as much upside as any investment I have ever come across. This is why it continues to be the only cryptocurrency I own, and the only one I have ever recommended.
Andy Hoffman (#HODLBTC) @Andy_Hoffman_CG
I have exclusively recommended #Bitcoin for 2 1/2 years, and continue to do so today, given its superior risk/reward profile.
BTC dollar cost averaging @targa4_s
Replying to @Andy_Hoffman_CG
It is irresponsible to recommend anything but Bitcoin since most alts die. People have no idea how to get out of their position before it implodes just like bitconnect
9:58 AM - 13 Jul 2018
As to whether Bitcoin will be the ONLY surviving cryptocurrency - which “hard core” maximalists believe - I have always thought this view to be ridiculous…as if Bitcoin truly achieves its goal of becoming the premier wealth storage asset – usurping fiat currency and gold in the process – the amount of capital flowing into the cryptocurrency sector will be unfathomable…which I assure you, will NOT all go into Bitcoin. Just look what happened this winter, when Bitcoin “dominance” (notwithstanding the obvious flaws in this calculation) fell to 30%; and today – when, amidst the throes of a vicious bear market, it is still just 43%.
What Simon and I discussed – which as usual, he described with crystal clear clarity – is that the ONLY function Bitcoin cannot be challenged in is SOUND MONEY; i.e., the most important, and valuable function. Whether it will be the standard of transactional money, too, is a question that will take a long time to answer – and frankly, makes little sense. I mean, how much transactional utility has gold had over the millennia – as opposed to its principal use case of wealth storage?
The other aspect of “Bitcoin Maximalism” that makes me cringe is the belief that ONLY Bitcoin can be secure. I mean, we are not even a decade into cryptocurrency’s existence, and some assume NO OTHER cryptocurrency can master this elementary concept. Yes, bigger, more decentralized networks inherently have more security…but in time, there will be plenty of big, decentralized networks. We already have some today, like Ethereum and Litecoin - which yes, have significantly decentralized blockchains (ask the SEC); and we’ll have many more in the future. Moreover, encryption technology is advancing at lightspeed – and thus, “trial and error” complications like the recent 51% attacks experienced by a handful of altcoins will unquestionably be resolved, sooner rather than later.
Again, I continue to hold 100% of my cryptocurrency wealth in Bitcoin, and solely recommend such an allocation to others. BRhodium will of course change that percentage – as in my view, its unique characteristics make it one of the few altcoins worth holding. However, it was received for FREE, as opposed to being purchased with fiat currency.
However, there are 7+ billion people in the world – many of which, do not share my risk/reward profile or cryptocurrency philosophy. Consequently, much speculation will occur in altcoins – in which, there will be many losers, but a handful of spectacular winners in time. Only you can know what’s best for you personally – but be warned…to believe ONLY Bitcoin will survive is naïve.
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