In contrast to the thousands of different cryptocurrencies that have emerged since the 2017 Initial Coin Offering boom, Bitcoin remains the best choice for any investor looking to enter the space.
Why is Bitcoin superior to all other cryptocurrencies? To find the answer, one must first examine what makes bitcoin a sound monetary asset. The following are several of its key characteristics.
There will only ever be 21 million bitcoin in circulation, and that number won’t be reached until 2140. By 2035, 99% of all the bitcoin that will ever exist will have been mined.
This fixed supply issuance of 21 million is programmed into Bitcoin, meaning that it can never be changed or altered without consensus among the network’s node operators. Furthermore, no matter how much the demand for bitcoin increases, the supply will always remain the same, and over time, the supply expansion decreases until stopping entirely. This is a key distinction that determines the nature of sound money and Bitcoin’s economic principles. There is an infinite supply of other cryptocurrencies, as other cryptocurrencies’ maintainers can simply create more iterations of coins out of thin air, regardless of current monetary policy.
Saifeadean Ammous, the best-selling author of The Bitcoin Standard, provided an excellent explanation of scarcity in relation to money: “A money that is easy to produce is no money at all, and easy money does not make a society richer; on the contrary, it makes it poorer by placing hard-earned wealth for sale in exchange for something easy to produce.”
Bitcoin is the only truly decentralized cryptocurrency. No single entity or person runs or operates the Bitcoin protocol.
Therefore, the entire Bitcoin ecosystem is completely resistant to any counterparty risk. Politically and socially, this is extremely important to the overall value proposition of Bitcoin’s network because, with no single points of failure,…