Bitcoin Maximalism Versus Multichain Future: An Unending Debate in Cryptocurrency World
Summary:
This article discusses the ongoing debate within the cryptocurrency community regarding 'Bitcoin maximalism,' a belief system that values Bitcoin above all other cryptocurrencies. Jan3 CEO Samson Mow is a notable proponent of this perspective, while Ripple CEO Brad Garlinghouse supports a multichain future. This division has defined cryptocurrency debates since Bitcoin's inception, with some seeing Bitcoin as the pinnacle of blockchain tech, while others see it as the start of a broader spectrum of development. The reformative Taproot upgrade and the emergence of innovations like NFTs serve to widen this ongoing schism.
The chief executive of Jan3, Samson Mow, recently stated that likening Bitcoin to other cryptocurrencies would be the equivalent of comparing a real aircraft to a paper airplane. On the other hand, Ripple's CEO Brad Garlinghouse contended, “The future will encompass multiple blockchains.” These contrasting viewpoints illustrate the longstanding disagreement in the cryptocurrency sphere between Bitcoin and all subsequent cryptocurrencies. Individuals who devoutly support a single blockchain are often deemed maximalists by the larger crypto community. This notion of Bitcoin maximalism emerged shortly after the birth of Bitcoin.
Giacomo Zucco, a Bitcoin instructor who identifies as a Bitcoin maximalist, holds fast to four principles: Anything non-Bitcoin is a scam, all attempts to alter Bitcoin signify a scam, all efforts to encourage Bitcoin spending are scams, and scammers don't deserve sympathy. From the genesis of blockchain, a multitude of altcoins, akin to low-effort copies of Bitcoin, started appearing by 2010, leading to the introduction of the term "shitcoin".
In 2011, Litecoin (LTC) was launched, bearing similarities to Bitcoin but with minor modifications in its code structure. Today, Litecoin remains among the top 20 in market capitalization. This led to Bitcoin enthusiasts pondering what other potential applications of blockchain and cryptocurrency might exist. 2014 saw Bitcoin developers, including Adam Back, penning the “Sidechains white paper,” which was perceived by some as the "altcoin killer." The ideas promulgated in this paper, which revolved around contracts and zero-knowledge proofs, were particularly influential and are still largely discussed outside Bitcoin circles. This suggests that Bitcoin maximalism has the potential to transform, indicative of sidechain developments like the Lightning Network and Liquid. Altcoins, however, managed to thrive despite these developments.
In 2014, Vitalik Buterin critiqued the notion of Bitcoin exceptionalism, which he defined as opposition to multiple competing cryptocurrencies and the launch of new coins. Buterin referred to this as “Bitcoin dominance maximalism” or simply "Bitcoin maximalism,” a term that has since become mainstream. Buterin, who also voiced his doubts about the potential of sidechains, declared Bitcoin maximalism as a fading ideology, a claim disputed by Bitcoin maximalists. In later years, the introduction of Ethereum by Buterin brought about an altcoin explosion, encouraging the creation of numerous altcoins and spurring initial coin offering mania, decentralized finance, nonfungible tokens (NFTs), and an array of doubtful tokens. None of these developments managed to appeal to Bitcoin maximalists.
Samson Mow, through Jan3, actively champions the global adoption of Bitcoin, playing an ambassadorial role as he travels globally, advertising Bitcoin's merits. He criticizes what he perceives as the cryptomarket's overemphasis on centralization and the proliferation of doubtful tokens. Mow holds that Bitcoin is an entirely different entity from these, placing it at a much higher pedestal. He claims that most Bitcoiners reject the rest of the cryptomarket because they see a world of difference between Bitcoin and other formats.
Brad Garlinghouse, the CEO of Ripple, offers a starkly different view, championing a multichain future where maximalists of any kind are discouraged. Cielo Finance, a wallet tracking enterprise, advocates for a multichain bias too, providing tracking services for numerous wallets across different blockchains. Matt Aaron, Cielo's co-founder, believes each blockchain is designed for different use cases and that competition within blockchains will reveal multiple winners. Innovations such as Ordinals, which enable NFTs on Bitcoin, further enforce Matt's view.
Not all Bitcoin advocates align with maximalist views. Nic Carter, a renowned Bitcoin supporter, faced criticism for his lack of maximalist stances after his venture capital firm invested in a non-Bitcoin project. Carter clarified that he was not, and will never be, a Bitcoin maximalist, emphasizing Bitcoin's exclusive focus on monetary transactions. In his view, indulging in non-monetary uses of Bitcoin such as NFTs would be profane.
The recent Taproot upgrade in 2021, intended to streamline transaction verification and boost the network's transaction capacity, represents yet another instance of the ongoing clash between maximalists and the broader spectrum of the cryptocurrency universe.
Published At
12/4/2023 2:01:00 PM
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