Although Bitcoin (BTC) has been pushed as an alternative to central banks, making it the be end and end all of the cryptocurrency ecosystem, some fear that the project’s prospects are limited. Some look to the growth of alternative blockchains, like Ethereum, and others except for the asset’s monetary policy and scaling solutions to falter over time. The chief executive of Dash Core, the primary DAO-funded maintainer of the DASH crypto, hopped onto this bandwagon of Bitcoin skepticism in a recent interview.
Dash CEO’s Crypto Vision
BreakerMag, a trade publication, recently conducted an interview with Ryan Taylor, who has become a leading industry executive. While much of the conversation was centered around the Dash cryptocurrency, especially Taylor’s involvement in the ecosystem, BreakerMag touched on the interviewee’s thoughts on Bitcoin. And, believe it or not, what Taylor had to say wasn’t exactly pretty.
In response to a question regarding Dash’s level of decentralization, the Dash Core Group head noted that his cryptocurrency of choice of “more decentralized” than BTC. He argued that as is stands, there are a mere six miners running the Bitcoin Blockchain, compared to Dash’s 4,500+ masternodes, which stake tokens to get a bid in governing the chain. And thus, Taylor, a former staffer at McKinsey, concluded:
“I can’t point to six people that control the Masternode layer. That actually provides additional security in many respects. We may not have as much hash power. But hash power is not the only way to secure a network.”
Taylor continued on this train of thought by drawing attention to Bitcoin’s purported copious amount of shortcomings. He flat-out stated that he doesn’t believe the cryptocurrency will survive in the long-term, adding that the Lightning Network, slated to be the innovation that brings Bitcoin from an antiquated technology to a global payment mechanism, “isn’t a solution.” Dash’s cheerleader adds that as the Bitcoin protocol lacks on-chain governance, it will have trouble adapting to newfangled marketplaces, much unlike the project he resides over. But that was far from the end of his tirade.
He adds that people over evaluate the network effects that BTC touts as the largest cryptocurrency, citing the dichotomy between those touting the benefits of Betamax and the rise of VHS tape. Taylor concludes that in the case of cryptocurrency, Bitcoin is much like Betamax, and other projects (he didn’t specify which) can be likened to VHS — indicating that as time elapses and technology develop, Betamax could slip in spite of its initial adoption.
Bitcoin Is Still Dominating Right Now
While questions remain about Bitcoin’s long-term prospects, the asset was recently proven to still have an iron grip over the cryptocurrency market.
JP Thor, a leading industry researcher, recently remarked via a Medium post that if you take volume (liquidity) into account, which he did through aggregating 12 months of trading activity, Bitcoin is far from dead in the water. Thor writes that Bitcoin’s dominance in the form of liquidity is actually well above the 50% gauged by market capitalization. In fact, Bitcoin has a consistent dominance reading of over 80%, which has only trended higher in this downturn.
Ethereum, on the other hand, has a measly ~7%, while altcoins take up the rest of the proverbial pie. And with that, it was concluded:
“In fact, just taking into account the Top 5 coins, BTC (the 20%) captures over 85% of the market… CoinMarketCap’s ‘Market Dominance’ is flawed since it does not factor in liquidity and the reported 55% is significantly understated.”
And some argue that its staying power is long-term. Fundstrat’s Tom Lee told CoinTelegraph that BTC is here to stay mere months ago. following that quip up with:
“It’s still the earliest days of crypto, and it’s about to become an emerging asset class. So, [these factors] are going to carry much higher prices… adoption is going to grow. and that we have institutional investors that will have opportunities to invest.”
More recently, Brendan Blumer, one of the minds behind the EOS chain, argued that Bitcoin will garner traction as the go-to store of value, allowing it to eventually oust gold.
Photo by André François McKenzie on Unsplash
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