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It truly seems to have almost developed into a dogma in the crypto market that Bitcoin is the leading cryptocurrency. Similar sentiments once surrounded pump.fun and Dogecoin before newcomers like Let’s Bonk and Official Trump temporarily overtook them. This could soon apply to Bitcoin as well, unless changes are made to the cryptocurrency. Find out more about the future of BTC and potential winners.
Bitcoin is Actually Losing Ground
Bitcoin currently has a market capitalization of $2.38 trillion, still the highest among cryptocurrencies. However,this could change if more people become aware of the reasons why.
The blockchain was launched in 2009. However, despite some optimizations and additions, it has seen only marginal progress progress compared to other ecosystems.
While Ethereum has improved its energy efficiency by switching to Proof-of-Stake (PoS) and implementing further measures, Bitcoin still requires approximately 10 minutes to process a transaction. Transaction fees of $0.91 are also substantially higher compared to Solana’s $0.008.
With only 7 transactions per second (TPS), bitcoin cannot compete with modern payment service providers like Visa, which processes 65,000 TPS. Therefore, the blockchain is also not suitable for handling the entire financial sector, which encompasses far more than just credit card payments.
Bitcoin distribution | Source: Bitinfocharts
Another disadvantage of Bitcoin is the uneven distribution of coins.87.88% of the total supply is held by just 21.03% of the addresses, and this community of Bitcoin maximalists actively promotes this concentration of wealth. Furthermore, 85% of Bitcoin is reportedly outside the control of institutions, reinforcing this assumption.
The mere scarcity of 21 million BTC does not automatically guarantee a high value. A rare, unesthetic doodle on a piece of paper, for example, doesn’t necessarily hold value. Though, scarcity is beneficial only if there is corresponding trust and demand – both of which currently exist.
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Some Reasons Support Bitcoin’s High Value
Nevertheless, Bitcoin continues to operate with 23,113 nodes, making it the most decentralized and therefore the safest network. Estimates suggest tens of thousands of these nodes are privately operated, significantly more than the 10,938 of Ethereum or the 6,358 of Solana.Bitcoin also boasts the highest hash output of all chains, at 952,703,982.52 Th/S.