What is Bitcoin Maximalism?
Bitcoin maximalism is a belief system within the cryptocurrency community that asserts Bitcoin is the only true and legitimate cryptocurrency, and that all other cryptocurrencies, or “altcoins”, are inferior and ultimately will fail.
Supporters of Bitcoin maximalism argue that Bitcoin has superior features such as security, decentralization, and scarcity, and that its network effects and first-mover advantage give it an insurmountable lead over other cryptocurrencies.
Some proponents of this philosophy also believe that Bitcoin will eventually become the global reserve currency, replacing traditional fiat currencies.
What is a Bitcoin Maximalist?
A Bitcoin Maximalist (aka Bitcoin Maxi) believes that Bitcoin is the only cryptocurrency worth owning and altcoins should be avoided. They view altcoins as a threat to the dominance of the Bitcoin network and aim to devalue all other cryptocurrencies after the oldest one, Bitcoin.
Bitcoin Maximalist Argument
Bitcoin maxis argue that Bitcoin is the first and oldest crypto that was created perfect in every way to become the official currency of the internet.
In their eyes, BTC solved the global currency problem and altcoins are poor copycats of Bitcoin.
Understanding Bitcoin Maximalism
Bitcoin Maxis think like members of a special cult that worship the Bitcoin network and all of its ability. You have to think like a BTC Maxi if you want to truly understand why Bitcoin maximalism is becoming more popular.
First off, crypto is a relatively new industry with many newbies entering the space every day. Of course, new money attracts scammers and con-artists who look to take advantage of unsuspecting crypto investors.
Bitcoin Maxis argue that only using Bitcoin helps limit the amount of newly minted crypto scams and makes understand crypto much more simple.
There are over 20,000 cryptocurrencies listed on Coinmarketcap and it would be impossible to understand each and every one properly. Bitcoin Maxis save time and energy by focusing only on Bitcoin and ignoring all of the new crypto coins even though some projects appear quite interesting.
The Case for Bitcoin Maximalism
BTC Maxis are a passionate group of crypto holders who back Bitcoin above all other cryptocurrencies.
Bitcoin’s network is the main reason why Bitcoin Maxis believe BTC is the only necessary cryptocurrency for the internet. The Bitcoin network requires miners to protect the network by issuing a newly created block every 10 minutes under the “Proof of Work” model.
Most new cryptocurrencies follow the “Proof of stake” model and can easily be manipulated by a centralized organization or group of people. Hundreds of millions of people hold Bitcoin in their crypto wallets, which gives BTC plenty of social proof unlike most crypto coins.
Bitcoin Maximalism Benefits
- Simplicity and focus: Bitcoin maximalism promotes the idea of focusing solely on Bitcoin as the most important cryptocurrency, which helps reduce confusion and complexity in the crypto world. It eliminates the need for extensive research and analysis of hundreds or thousands of other coins.
- Network effects: Bitcoin is the oldest and most established cryptocurrency, and it has the largest network effect. This means that Bitcoin’s network is more secure, more stable, and more resilient than any other cryptocurrency. Maximalism supports this network effect by promoting Bitcoin as the primary cryptocurrency.
- Strong community: The Bitcoin community is one of the most active and passionate communities in the crypto world. Maximalism encourages this community to grow and develop further, which can lead to innovation and development of new Bitcoin-related technologies.
- Improved liquidity: By focusing on Bitcoin, maximalists can help to increase its liquidity, making it easier to buy and sell Bitcoin on exchanges and other platforms. This liquidity can help to increase adoption and make Bitcoin more accessible to mainstream investors.
- Reduced volatility: With a focus on Bitcoin, maximalists can help to reduce volatility in the crypto market. By promoting Bitcoin as the primary cryptocurrency, maximalists can help to stabilize the market, making it a more attractive investment opportunity.
- Reduced risk: Bitcoin maximalism can help to reduce the risk associated with investing in cryptocurrencies. By promoting Bitcoin as the most secure and stable cryptocurrency, maximalists can help investors to feel more confident in their investments.
- Increased adoption: Maximalists believe that by promoting Bitcoin as the primary cryptocurrency, they can help to increase its adoption among individuals and businesses. This can help to increase Bitcoin’s value and overall market share.
- Better scalability: Bitcoin maximalism can help to improve the scalability of the Bitcoin network. By focusing on Bitcoin, maximalists can push for improvements to the network’s infrastructure, which can help to increase its transaction throughput and reduce fees.
- Greater privacy: Bitcoin maximalism can help to increase privacy and anonymity in the crypto world. By focusing on Bitcoin, maximalists can push for the development of new privacy technologies and features, which can help to protect users’ identities and transactions.
- Sound money: Finally, Bitcoin maximalism promotes the idea that Bitcoin is “sound money.” This means that it has all the qualities of good money, such as scarcity, divisibility, and portability. By promoting Bitcoin as sound money, maximalists can help to establish it as a legitimate and viable currency.
Concerns about Bitcoin Maximalism
While Bitcoin maximalism offers several benefits, there are also concerns associated with this ideology.
One of the main concerns is that it can lead to a lack of innovation and development in the crypto world. By promoting Bitcoin as the only valuable cryptocurrency, maximalists may discourage experimentation and research into other potentially valuable coins.
Additionally, the focus on Bitcoin can create a single point of failure, where any issues with the Bitcoin network could have catastrophic consequences for the entire crypto ecosystem.
Finally, the promotion of Bitcoin as the only valuable cryptocurrency may limit the options available to investors, potentially leading to missed opportunities for diversification and growth.
Famous Bitcoin Maximalists
Some famous Bitcoin maxis are:
- Michael Saylor – Executive Chairman of MicroStrategy
- Jack Dorsey – CEO of Block Inc
- Max Kieser – Long time Bitcoin HOLDer
- Ricardo Salinas – Mexico’s Richest Man