Why Bitcoin Dominates Crypto Despite Minimal Utility

Bitcoin (BTC 3.01%) It drew a lot of early interest from investors as a hedge against inflation and as a method of decentralization. But is it still relevant today? In this Motley Fool Life A clip from “View Virtual Opportunities”, Registered on May 10Fool.com contributors Jose Negaro, Travis Hume, and Dimitri Kalogeropoulos examine the real-world utility of this mainstream cryptocurrency.

Jose Nagaro: Why is Bitcoin such a popular name compared to all other cryptocurrencies, even though it does not have, like a utility, as I mentioned in EthereumYou can do all these things like smart contracts and things like that with Bitcoin, it doesn’t seem like we can do that, but yeah, that’s like the first name we think of when we hear about cryptocurrencies.

Travis Home: Simply because it was the first. I think bitcoin is what started it at all. In the theories behind Bitcoin in the blockchain, decentralization was something that a lot of people bought, and it’s like you’re rolling this ball and then people start trading it and then they start making money and then they think it’s valuable, and when you do it back to first principles, that’s what I tried Doing with some of these things that would be my argument for not having Bitcoin is because I’m interested in what you can build with these things and I don’t see things being built on top of Bitcoin. I see them being built on Ethereum and Solana And a whole host of other cryptocurrencies have potential advantages there, too.

But it’s always something evolving, too. We know that to forbid You’re working on something related to bitcoin, which is that there’s some kind of rail on which to run payments, maybe things like that. One problem I have with this specifically is that the arguments for Bitcoin are often not realistic. Like, it’s not really decentralized when a large percentage of it is owned by twenty wallets. [laughs] It’s supposed to be a hedge against inflation, but we have a lot of inflation right now, and it’s going down like a rock, so some of those things, you could say the same about gold though.

Jose Nagaro: I suspect Queen Piece They announce their earnings today and I believe their earnings share their top three trades. I will probably take a look to see if the market sentiment has shifted between what coins are and what is being traded at the moment.

Travis Home: So what they usually report is the transaction volume, and then I think they are doing the transaction volume relative to the dollar volume of bitcoin and ethereum, and then they just have this other bucket, which will be another 200 tokens to trade on. Usually bitcoin as time goes on, it becomes less important in relation to its trading volume, and that’s what we see. As with things that are built on other blockchains and with these other cryptocurrencies, these things are gaining adoption and Bitcoin has kind of lost this leading position in the market. I mean this is my thesis for the long term, we’ll see if that’s what keeps working.

Dimitri Kalogeropoulos: I know Berkshire Hathaway CEO Warren Buffett Made Some Comments About Bitcoin At The Last Annual Meeting? Yeah. [laughs] I’m looking at the Motley Fool article that describes this a bit and it seems to say, “Even if all the bitcoins in the world were offered for $25, they wouldn’t take it.”

Rachel Warren: I heard that. I was listening to that and I was like, OK, OK.

Dimitri Kalogeropoulos: Yes, it’s very interesting that it has two of this article anyway, and I’m going to link it to the slider, but I’m going to discuss some of the reasons that like what Travis mentioned, Bitcoin doesn’t produce anything tangible. Just real quick that the two, it’s not actually a coin, and the third, he doesn’t understand it and it’s a good idea not to buy something you don’t understand, that’s always good advice.

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