Jimmy Song, Bitcoin developer and entrepreneur, expressed his opinion on Bitcoin and its exceptional position among other cryptocurrencies. His statements come in a rough time for the crypto market, which has been suffering losses for the past two months. In his Medium post, Jimmi Song started by stating his doubts concerning the Altcoins:
How is one coin to be distinguished from another? And more importantly, how is an investor to know what the long-term value of a coin will be?
According to Song, every new coin tries to outperform Bitcoin by including some feature that Bitcoin lacks, but it’s simply not enough. He wrote:
What’s missed is that the biggest innovation has already happened. Decentralized digital scarcity is the real innovation and Bitcoin was the first.
It follows that any new features of other coins are insignificant compared to the main innovation that bitcoin has already introduced and implemented. Thus, many altcoins have slim chances of ever being adopted. Bitcoin, on the other hand, attracts more and more users, which produces a substantial network effect and makes it even more influential. So being the first crypto turns out to be a huge advantage.
Moreover, only Bitcoin is truly decentralized, as it doesn’t have any central authority after the disappearance of Satoshi. That is not the case with other cryptocurrencies and ICOs, as they have a central company that is largely in control, just like governments are in control of fiat money supply.
Song states that introducing another truly decentralized cryptocurrency would be very difficult, although it cannot be ruled out. He wrote:
Bitcoin will continue to be different because unlike centralized coins, it’s market-driven, immutable and unseizable. These happen to be the properties of a great store of value and this gives Bitcoin a utility that no other token has.