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What about other coins? They’re cheaper!

  • OTHER coins are scams. If Bitcoin is gold, then other currencies are penny stocks. They’re risky and rigged against you by the people who created them.
  • These other crypto currencies are simply just companies that trick you into buying their coin to fund their “project”. 
  • And why did they create them? Some are more merited than others. In the early days, software engineers in the crypto space wanted to build projects that they thought had an edge that Bitcoin didn’t. They created their own coins that had “better” features Bitcoin didn’t. “I’m gonna fix Bitcoin”. This was seen mostly with fixing Bitcoin’s privacy by making coins that have privacy in the protocol itself instead of adding privacy applications on top of the crypto currency’s network (which is hard to do).
  • That didn’t work because Network effects are powerful. It’s like when you try to leave twitter for Mastodon and convince all your friends to follow you. Problem? EVERYBODY is already on twitter. It’s too much of a pain to make an account somewhere else that has a sub-optimal user experience. 
  • The same happens with money. ALL the money is in BITCOIN. It’s the most valuable, it’s the coolest kid in school. Everybody wants to be his friend, and he’s not a weirdo that picks his nose in the corner 
  • The only reason there’s a coin at all is because the project has a blockchain. This project doesn’t even need a blockchain in order for their project to work in the first place. It could most likely solve the “solution” with a much more efficient, centralized database. The honest truth is that there’s no problem for this solution at all. It’s simply a jobs program backed by VC’s looking for a place to park their capital by speculating on the next-big killer-app of “crypto” “blockchain” or (god forbid), “DeFi”.
  • They’re not even legal (Ripple is an unregistered security, which breaks the rules and regulations set by the SEC). This may actually be open to debate now due to a recent amendment by the SEC.
  • The government is able to crack down and enforce the rules on these companies too. They can’t, however, crack down on Bitcoin 
  • Even if Bitcoin isn’t a dominant medium of exchange right now, it’s the best way to convert your fiat into a savings vehicle that actually works. 
  • Bitcoin is decentralized. Other coins aren’t. Other coins can print more money for whatever reason they want, whenever they want because they have a centralized decision maker (CEO/leader/influencer, whatever). This means the purchasing power of your coins goes down. Your favorite crypto CEO basically just stole your money from you because the coins he gave you are worth less from his “printing” of more coins. Your investment has now been turned into a liability (it costs you money to have the coins in the first place). 
  • Whether or not they intend to, other coins are competing with Bitcoin to be money because Bitcoin is default the winner in the “crypto space”. Money always 
  • You don’t have to trust the CEO of Bitcoin because THERE ISN’T ONE. Bitcoin is truly decentralized, and is the ONLY decentralized cryptocurrency in existence. 
  • Other coins are just vehicles to trick people into spending their money on a useless token so the creator or said token can use the money to buy more Bitcoin
  • The market has already spoken about which technology it thinks is best…
  • Bitcoin’s market capitalization and hash rate (how much power the miners pay the network to mine it). and number of nodes (people’s personal computers dedicated to verifying the Network) have greatly outperformed any other crypto and will continue to do so as time moves on

“The government will ban/kill Bitcoin

  • Governments will try to prevent the use of Bitcoin by attacking the fiat on-ramps
  • However, the Bitcoin network will still be up and running (it can’t be turned off)
  • Because of Bitcoin’s decentralized nature, it will continue running because people all over the world use it 
  • Turning off Bitcoin would mean you have to turn off the internet 
  • if you turn off the internet, that means you turn off all the other  important public industries and utilities people rely on
  • If Bitcoin goes down, that means everything else went down too, which mean you have much bigger problems to worry about (but with growing technology advancements, you can now transact and use Bitcoin via satellite. Smart, paranoid computer geeks have already planned for the worst of scenarios)
  • Bitcoin uses encryption, which makes it impossible for it to be stolen from me physically. The only other way would to legally ban it
  • Prohibition of alcohol didn’t work, and made drinking increase. The same has happened when governments like India and China pass similar laws on Bitcoin, and the price usually tends to sky rocket
  • Government rules create black markets of the things they ban, so they essentially shoot themselves in the foot by creating the opposite outcome the intend on making 
  • See the war on drugs
  • Also, consider the mainstream momentum:
  • both private and public companies, and investment funds already own Bitcoin (and counting) 
  • Microstrategy, Tesla, 
  • Insurance company Mass Mutual, 
  • Bridgewater, Black Rock
  • Federally regulated U.S. banks can now officially custody crypto assets. The IRS treats it like a commodity for tax purposes.
  • As Bitcoin’s market capitalization reaches over $1 trillion, and as more institutions hold and gain exposure to it, it just gets harder to ban

Sources:

Lyn Alden’s 7 Misconceptions About Bitcoin

Bitcoin For Beginners

The Little Bitcoin Book