Brad Mills, the host of the Magic Internet Money Podcast, an early seed-stage investor, and a Bitcoin enthusiast, recently shared his views on Bitcoin’s dominance in a long thread on Twitter. Mills has a reputation for holding strong views on Bitcoin. This time, the podcaster shared with his over forty thousand strong followers on Twitter that Bitcoin would become the clear lord of all the other tokens, despite the growing competition.

Holders of such views are commonly referred to as Bitcoin maximalists. The notion here suggests that other cryptocurrencies are inferior to Bitcoin. Bitcoin maximalists believe that bitcoin would be the most useful cryptocurrency in the future when Web3 gets to mass acceptance. 

Notably, Bitcoin maximalists see Bitcoin as a currency and a technology with far-reaching implications for monetary economics, censorship, and governance. This is in addition to the blockchain’s technical advantages. To put it another way, irrespective of Bitcoin’s price, the cryptocurrency’s architecture is what makes it so innovative.

This article supports Mills’ stance on Bitcoin’s dominance over altcoins. And since we know you are here because you love alts (hey so do we), if you want to see the argument against this stance in favor of alts, you can check out our rebuttal to this same Mills thread. But first, let’s take a closer look at Mills’s argument for Bitcoin.

Brad Mills on Bitcoin’s Superiority

Back to Mills’ tweet, the podcaster wrote that “The obvious long term institutional trade, IMO is #Bitcoin to $1 million. The market will realize that the monetary properties of bitcoin are far superior to the monetary properties of other cryptos like ETH & SOL & it should (aside from in bubbles) allocate to BTC.”

Mills’ argument would surely have stirred a few thoughts from pro-altcoin thinkers, who believe altcoins have a great chance to surpass the foremost cryptocurrency. As of now, altcoins like SOL, AXAV, and ETH have put up strong performances as bitcoin’s competitors. However, Mills believes that Bitcoin would surely outclass this pack and have a market of its own. 

Supporting his views, Mills wrote, “Eventually, the investment thesis for #Bitcoin will decouple completely from other cryptocurrencies. Betting on ETH & SOL and their DeFi application coins (the few majors that survive ponzigeddon) will be more like betting on big tech companies, based on things like PE ratio. ”

Bitcoin is “Perfect Money”

Altcoins such as ETH are widely seen as strong alternatives and competitors to Bitcoin’s status as money. However, most believe that both cryptos can co-exist as forms of money. As the crypto world braces up for further real-world use, the big question has been which crypto would stand out as a form of money. 

In this present state of adoption, everything seems to compete with bitcoin for recognition and status. However, Mills believes that BTC is “perfect money.” He tweeted, “As long as we are a technological species with abundant power and global communications protocols – bitcoin is perfect money.”

Some centuries ago, aluminum attained a strong recognition in the market and many investors held it in a higher position than gold. However, the market soon discovered the true worth of aluminum, causing its cost value to plummet to a dollar. Despite Ethereum’s growing popularity, Mills argues that like aluminum, it would eventually decline. “ In a world where Bitcoin exists, eventually the market will figure it out.” Mills wrote.

Support for Bitcoin’s Dominance

Since it first emerged, altcoins like ETH have surely outperformed the expectations of most traders. Ethereum’s team built huge network effects in terms of blockchain adoption and liquidity that seriously challenge Bitcoin. However, it pales in comparison to Bitcoin’s other value pillars, which make it perfect money. So far, all indications point to the fact that ETH might not be a healthy long-term investment. 

The following are the dangers that ETH faces:

  • Community instability caused by miners
  • possible regulators’ interference and censorship threats. If governments turn against crypto, Infura censorship poses a serious threat to DeFi.
  • the possibility of a severe recession on a macro level.
  • the technical risk associated with the POS/ETH 2 merger.
  • The risk of a market cycle 
  • Ethereum faces enormous competitor risk. This means that the threat of a competitor is a huge risk for Ethereum. It competes with Avalanche, Radix, Solana, and all other L1s. These platforms are more scalable, sophisticated, and offer a better user experience. Some of these platforms are well-financed. 

This does not mean that Ethereum will fizzle out. However, it does suggest that there will be a distinction between Bitcoin and altcoins. These altcoins will form one market while bitcoin will have its own. 

According to Mills, “ Altcoins like ETH can compete & trade w/ each other in a $2-5 Trillion pool. The obvious long-term institutional bet is BTC as a $20 Trillion post-trust global reserve asset.”

Bitcoin has Institutional Interest and Trust

Bitcoin has unquestionably established itself as “digital gold.” For example, more institutional investment in cryptocurrencies was made in 2019 than ever before, with the majority of it going into Bitcoin. Institutional Bitcoin investment is now a normal sight. In past years, this was not the case. For a long time, institutional investors have been making investments in cryptocurrency. However, it is mostly at a conversational pace. It all changed in 2020. More institutional money entered the market during the bull market that began in 2020. 

Compared to other cryptos, Bitcoin has more institutional trust. Most organizations believe Bitcoin is more trustworthy than other cryptocurrencies. A 2021 study by data platform, Premise, showed that many people trusted Bitcoin more than their local currencies. The present instability witnessed by Bitcoin is almost a normal occurrence in the crypto space. So, it is only a matter of time before BTC picks up again.

Due to its pioneering status, Bitcoin is frequently regarded as the crypto market’s reserve currency. This is similar to the USD in global stock markets. Most true crypto traders never compare the prices of altcoins to those of fiat currencies. Instead, they compare their worth to BTC, because that is the market pair that counts to them the most. As a result, it’s reasonable to see the rest of the market price drop when Bitcoin’s market sentiment drops.

Bitcoin has a Strong Network

Bitcoin’s network is another reason to believe in its continued dominance. The success of a digital currency is usually determined by the blockchain network that underpins it. Though other digital currencies have modifications to address issues in bitcoin’s network, the ultimate point to success is the duration and resilience of a blockchain. Bitcoin’s underlying network is undoubtedly strong. This is the reason most investors believe any slippage is only temporary. 

In conclusion, Bitcoin’s status as the pioneer crypto puts it leagues ahead of altcoins. Despite the present decline, Bitcoin’s place as the future of the world is unquestionable. 

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