In a market where there are over 6000 different cryptocurrencies, there are actually individuals who believe that all but one cryptocurrency will disappear over time. These individuals are called Bitcoin maximalists.
The belief of this group is that all other crypto assets are inferior to bitcoin and that bitcoin is the only winner in a winner-takes-all world. The end state is “hyperbitcoinization,” where the entire global system of money, value transfer, and trusted property will take place on the Bitcoin blockchain.
In this, Bitcoin is like the Gallic Village, the only stronghold that will remain in place in the financial chaos of money printing and government intervention.
Bitcoin offers a world where inflation is not driven by central banks, but only by cyclical demand and supply. Every citizen is their own bank and the entire financial industry disappears as everything is done decentrally with Bitcoin and the Bitcoin blockchain, with no third parties required at all.
This is a compelling future for many. It is a chance to start a revolution. It offers people the opportunity to control their own lives.
However, there are other extremely exciting crypto networks and blockchains outside of Bitcoin. Bitcoin is enormously secure and trustworthy, but this comes at the cost of speed and functionality.
However, almost all alternative blockchain solutions are also suboptimal for various reasons: speed, trust level, cost, flexibility, etc., and therefore there will likely be multiple winners (and even more losers).
Moreover, different blockchain and crypto protocols serve different needs. Not every decentralized network needs to be as trustworthy as Bitcoin, for example.
Therefore, the many different projects are not really in competition with each other, they rather complement each other. They all aim to solve different problems.
And together they form the digital asset ecosystem, which is many times larger than any one of these ecosystems taken on its own.
In the future, we probably won’t see or know which protocol is executing what. The new decentralized internet based on blockchain technology will simply work. How is this possible?
There will be an interoperability layer built on top of it that connects everything together. Any kind of network can be connected.
That’s interoperability – seamlessly connecting everything into something user-friendly. And this missing piece of the puzzle, the project that enables interoperability of networks already exists and is continuously gaining popularity.