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Why Bitcoin Will Always Be One Step Ahead Of Other Cryptocurrencies: CoinMetrics Report

The competition between Bitcoin and altcoins is often heating up. But why will Bitcoin remain the leader in the crypto market, despite its technological “obsolescence” compared to altcoins? We are analyzing the arguments from CoinMetrics.

“All that glitters is not gold”

After launching Bitcoin, almost immediately “overgrown” with competitors – altcoins, which arose based on its blockchain. Today, there are about 1,000 altcoins, ranging from strong competitors by a market cap like Ethereum or Tether to comic projects like Dogecoin.

Although most altcoins are an order of magnitude higher than the flagship crypt in terms of technological capabilities, Bitcoin will always be one step ahead. The experts from CoinMetrics are sure of this. Bitcoin’s uniqueness goes far beyond technology, according to the company’s November report. However, critics often compare Bitcoin to dial-up Internet access – an outdated solution that has long been found to be a better solution. According to CoinMetrics, this is just a marketing game.

The report states:

Proponents of new crypto assets focus exclusively on the technology side – where Bitcoin is a little bit backward new assets are doing well. But when it goes beyond comparing technologies, Bitcoin decisively puts them on the sidelines.

Bitcoin and fair distribution

Cryptocurrency is not just a story about technology and innovative solutions. It was Bitcoin that gave impetus to the development of the so-called digital economy. For example, you can remember the “hot 2017″, when the success of Bitcoin became the impetus for the scaling of the altcoin market and the emergence of new projects.

But what prevented altcoin developers from pre-distributing them among friends or investors? Analysts at CoinMetrics are raising this issue sharply, pointing out the presence of an element of centralization that can be traced in crypto holdings.

Cronyism and unfair distribution of offers is a characteristic feature of many altcoins. We can trace the centralized ownership structure using the blockchain data of an asset.

Unlike other cryptocurrencies, the value of Bitcoin lies in the fair distribution of the supply thanks to mining. Here we see a fair turnover: miners deliver on new blocks and are rewarded for finding them.

An experiment that grew into an asset class

Bitcoin was a pioneer and was initially viewed by many as a “fun experiment”. At that time, there was still no concept of the exchange rate for the cryptocurrency, and the first owners of Bitcoin did not understand the true value of the “digital novelty”.

The first experiments with Bitcoin often ended in disastrous failure. As a result, today we have a lot of irretrievably lost coins.

Taken together, all of these factors provide a basis for Bitcoin to confirm the status of the flagship on the crypto market. Whether or not CoinMetrics’ experts agree is up to you.