Thousands of different cryptocurrencies sprang from the Bitcoin Genesis Group (BTC) in 2009. According to the November report from Coin Metrics, while new assets have different technologies and new bells and whistles, Bitcoin still has an edge in a master class.
The report explains that due to its relatively archaic architecture, people sometimes compare Bitcoin to older, outdated versions of other technological innovations, such as dial-up Internet access:
Often times, these are part of the deliberate marketing strategies promoted by proponents of new cryptocurrencies that have been reported as successful as Bitcoin failed. Unfortunately, the newcomers face a purely technological comparison system that is ultimately marginalized, especially when the debate becomes highly technical. ”
Technological capabilities are important. However, cryptocurrencies, with their underlying chains and ecosystems, also function as a form of money or value in addition to their technological basis. Therefore, asset allocation plays a major role in the equation, the report notes.
Cryptocurrencies have received countless headlines over the past decade, especially in 2017, when several alternative cryptocurrencies made huge profits for their owners. Many people and teams have created their own digital assets, some of which compete with Bitcoin’s value proposition.
However, as Bitcoin has become a more well-known name, growing organic assets has become difficult. When people saw the viability of the new assets, what prevented them from distributing different amounts of the assets created to specific groups, including specific friends or investors? In fact, since some financial income is expected at the beginning of a newly constructed asset, these new assets are not evenly distributed among the people.
The Currency Metrics report indicates the centralization seen in cryptocurrency holdings through data from the related blockchains of these assets. The report states that “favoritism, combined with other models of unequal distribution of supply, inevitably leads to an incredibly centralized cash base”.
“With chain data, we can identify ownership structures that conflict with Bitcoin and determine the degree to which wealth is central to its digital economy,” the report said.
Basically, Bitcoin began as an unparalleled experience ahead of its time. Few have understood how this asset works from the start. Coin Metrics explains: “It wasn’t until an exchange rate that early users began to understand the value of their bitcoins”:
“Combined with the technical intricacy above, the results of the early Bitcoin experiments were disastrous: It is believed that a great deal of BTC was lost during this period. After all, dealers treated Bitcoin as it was at the time: an intriguing experiment with digital monopoly money.”
Through graphs and examples, the report explains Bitcoin’s early journey that led to the widespread adoption of currencies. Mining has also affected asset variance. However, the data in the report is largely based on analysis of crypto wallets’ addresses. Participants sometimes use multiple wallets and addresses, so the accuracy of the results is questionable.
Crypto analyst, merchant, and YouTube user Ton Weiss has also made similar points regarding Bitcoin’s decentralization.
Last month marks the 12th anniversary of the release of the official Bitcoin document.