Why $BTC (-0.05%) cannot be copied and why Bitcoin is fundamentally different from altcoins (870619)
Since the invention of Bitcoin in 2009, there have been countless imitators - from Bitcoin Cash to Bitcoin Gold, Bitcoin Diamond, Bitcoin SV and many more. But despite all these copies, Bitcoin itself remains the undisputed original and dominates the market capitalization of the entire crypto market.
The questions many may be asking themselves are:
- Why has no other project yet managed to replace or even seriously threaten Bitcoin?
- How can it be claimed that Bitcoin is absolutely limited when it could be copied an infinite number of times?
I will try to give you the answer to this question in today's article.
Bitcoin has often been copied, but never replaced
Bitcoin is an open source project - anyone can copy the source code, adapt it and create their own cryptocurrency. And that is exactly what has happened - countless times. The number of Bitcoin forks (spin-offs) is enormous. Especially in 2017, during the crypto boom, numerous "Bitcoin versions" emerged, including
- Bitcoin Cash
- Bitcoin Gold
- Bitcoin Diamond
- Bitcoin Pizza (yes, this really exists😂)
- etc.
Nevertheless, these projects never took off. The reason? It is not enough to copy the code of Bitcoin - the essence of Bitcoin lies much deeper - not just in the code.
What makes Bitcoin unique
(1) Decentralization
Bitcoin is the only cryptocurrency that is actually completely decentralized. There is no entity, no company and no leading personality that controls Bitcoin. Other projects, even the imitators, often fail because of their dependence on central developers or organizations.
(2) Network effects
Bitcoin was the first cryptocurrency and has built up by far the largest ecosystem of users, nodes and miners over the years. New projects have no chance of catching up.
Example: If you want to communicate with a friend, you use a widespread network such as WhatsApp or Telegram. There's no point in developing your own app if nobody uses it. It's the same with Bitcoin - the network effect cannot be copied.
(3) The hashrate as an energy shield
The security of Bitcoin is based on the computing power (hashrate) that protects the network. Bitcoin is the most secure computer network in the world - stronger than any other blockchain project. No altcoin can mobilize nearly as much energy to secure the network against attacks. The more energy flows into the network, the more difficult it becomes to attack Bitcoin.
An attacker alone would have to mobilize more energy than the rest of the world to compromise the network - which is practically impossible.
Physics instead of just computer science: why Bitcoin cannot be copied
A common misconception is that Bitcoin is just a technical project. In reality, its strength lies not only in computer sciencebut also in physics - more precisely in the energy generated by mining.
As a result, Bitcoin has an anchor in the real world, which also ensures that the network continues to decentralize. Energy is only ever available to a limited extent in one place, which is why mining is automatically distributed around the world. Wherever energy is generated that cannot be used in any other way, it can be mined and monetized - a possibility that did not exist before Bitcoin.
As the Proof of Work consensus mechanism is a "winner takes it all" mechanism and other projects cannot compete with Bitcoin in this respect, more and more projects are switching to other consensus mechanisms such as Proof of Stake, which are not physically secured and are therefore only on information technology based only on information technology.
However, these consensus mechanisms are not comparable to Bitcoin in terms of security.
Proof of Stake, for example, rewards those who already own large quantities of coins, which leads to a concentration of assets and a centralized decision-making structure in the long term. An example of this is the concentration of control over validators in Ethereum after the switch to Proof of Stake.
Bitcoin is therefore practically invulnerable and uncopyable thanks to its "energy shield" - in stark contrast to altcoins, which are based purely on IT.
Other cryptocurrencies such as $ETH (+0.2%) for example, are coming under increasing competitive pressure from other, sometimes faster or cheaper coins such as $SOL (+0.39%)
In this case, one non-decentralized project faces competition from another, even less decentralized project.
The altcoins are therefore competing with each other. However, nothing comes close to Bitcoin because none of these other projects can even come close to the security and decentralization of Bitcoin. And security is the most important feature of a monetary network, which is what gives the whole thing trust - and therefore value.
What I simply want to say is:
-> Computer science can be copied, physics cannot.
The "mindblow": Bitcoin can copy, but cannot be copied
Bitcoin has an amazing ability: it can adopt good features of other cryptocurrencies, but cannot be copied itself.
While it is not possible for other projects to copy Bitcoin, as the physical layer cannot be copied, Bitcoin itself can very well adopt properties of other coins that are based purely on information technology based purely on computer science.
Taproot and SegWit show how Bitcoin integrates new technologies. While other coins advertise new functions such as smart contracts or fast payments as a unique selling point, Bitcoin integrates these features via soft forks or 2nd layer technologies such as the Lightning Network while remaining built on its solid foundation.
Bitcoin can therefore adopt future altcoin use cases - if they are found - which makes altcoins virtually obsolete.
Conclusion
Bitcoin is more than just code. It is a unique interplay of technology, energy and global acceptance that no other project can replicate.
There may be many copies, but only one true Bitcoin. And that's not just because of the computer science, but because of the fundamental principles and ecosystem that make Bitcoin a distinctive, uncopyable network.
Have a nice day!✌️🧡
