We all know the story here. In 2009, the mysterious Satoshi Nakamoto launched a BTC network and extracted the so-called Genesis block. Since then, blockchain technology has matured and grown, and several projects have been launched to improve the foundations on which BTC stands. Despite the efforts of pursuers, BTC still holds its position at the top of the ladder, dominating 43% of cryptomarket with a market capitalization of nearly $ 1 trillion.
Criticism of BTC
Over the years, the list of the 5 largest cryptocurrencies has undergone many changes, with one exception. BTC has always maintained its top position since its debut. However, according to some analysts, this may not be indefinite and BTC could become an “altcoin” in the future and even fall to third or fourth place in the rankings.
Proponents of this belief cite the glaring lack of advanced features of smart contracts as the main reason for the possible downfall. Not only do decentralized finances rely on smart contracts, but it is their huge rise in popularity in recent years that has made many cryptocurrency users well aware of their absence from BTC.
ETH is now perceived as a project with the greatest potential to skip BTC (flippening) precisely because of the advanced functions of smart contracts. More than 3,000 Dapps are currently being built on the ETH network and host many DeFi products, as well as the recently popular NFT.
If we focus on the extraction time of one block, it is around ten minutes for BTC. Compared to newer blockchains, it can be described as very slow. Due to the fact that speed often decides, blockchains built with respect to speed can jeopardize BTC. In addition, due to environmental concerns, the Proof-of-Work consensus is coming to the forefront, underscoring doubts about the continued dominance of this digital asset.
Will BTC retain its role as a cryptocurrency king?
Although BTC is far from perfect, it still has certain features that no one else has. First, it is the first cryptocurrency and also the most popular cryptocurrency in the world. Countries such as El Salvador have begun steps to recognize its function as legal tender, and other countries could follow suit.
In addition, BTC more than satisfactorily plays an anti-inflationary role, and the development of the Lightning Network provides an answer to the question of speed and scalability. The much-anticipated event is the Taproot upgrade, a major technology upgrade that will improve the privacy of the BTC network.
However, if BTC does not manage smart contracts, DeFi, Dapps and NFT, it will be extremely difficult for it to stay ahead of other cryptocurrencies. Among the possible opponents who will want to compete with BTC for the number one position on the cryptocurrency market are the already mentioned ETH, Cardano, and according to some theories, one of the stablecoins will eventually become the winner.
Crypto market often follow the movements performed by the cryptocurrency king. As Bitcoin rise, the altcoins ride the wave of growth. In order for an altcoin to think of removing BTC from its cryptocurrency, it must have many practical functions and the same global appeal.