Fidelity Digital Assets Director of Research Argues Against Bitcoin Potentially Losing Top Spot in Cryptocurrency Market
Posted on November 13th, 2020 by Kyle Torpey and filed under Bitcoin.
In a blog post published on Friday, Fidelity Digital Assets Director of Research Ria Bhutoria argued against the criticism that bitcoin could eventually be replaced by a competitor as the major cryptocurrency on the market.
The blog post covered six “persisting Bitcoin criticisms” in total: price volatility, lack of adoption as a payment system, wasteful proof-of-work, use for illicit activity, lack of intrinsic value, and losing out to a competing currency.
In terms of bitcoin losing out to a potential competitor, Bhutoria pointed out that, while Bitcoin’s open-source software can be forked, the community and network effects around the underlying bitcoin asset cannot.
Bhutoria also argued that the alternative crypto assets that have attempted to improve upon some of Bitcoin’s potential shortcomings around transaction throughput or price volatility have done so at the cost of weakening the properties that make bitcoin valuable in the first place such as scarcity, decentralization, and immutability.
“Bitcoin has qualities that make it valuable, and it makes explicit trade-offs to offer those qualities, as mentioned multiple times in this piece,” added Bhutoria.
Kyle is the creator of The Crypto Feed. Before founding The Crypto Feed, Kyle was a longtime freelance Bitcoin writer at places like Forbes and Bitcoin Magazine.