Now that the dust has settled a little and Bitcoin has landed on Wall Street via the approval of all Spot ETFs, We expect adoption to grow. Undoubtedly, we’ll also see an influx of “bigger, faster, and better than Bitcoin” altcoin narratives, gaining traction in the wake of this development. As a Bitcoin-only company, we believe concentrating solely on Bitcoin offers unique advantages. It’s time to focus.
Let’s dive into some key distinctions between Bitcoin and the wider cryptocurrency realm to illustrate this viewpoint.
Bitcoin is volatile. This is a feature and not a bug. While Bitcoin can experience periods of high price fluctuations, its long-term track record is unmatched, especially for individuals employing a dollar-cost averaging strategy. It demonstrates exceptional returns, stability, and security for investors, their families, and even businesses alongside their employees.
Bitcoin is the best performing asset of the decade!
Conversely, broader “crypto” markets tend to exhibit greater volatility, potentially leading to more frequent and significant losses, even for experienced traders. This highlights the importance of careful research and understanding the inherent risks associated with these markets before investing. According to Nasdaq 91% of Cryptos From 2014 Have Died, While Bitcoin Continues To Thrive.
Bitcoin is not Crypto
There are over 2 million cryptocurrencies listed on coinmarketcap.com. Thousands have gone to zero, leaving investors with nothing but pain. They all have a leader, a foundation to decide policy, a marketing and a PR department to promote their coin.
Bitcoin is the only fixed supply digital commodity. It is fully decentralized, the monetary policy has been decided and set in code, it has no leader, no foundation, no marketing or PR department for promotion. It has no counterparty risk.
Bitcoin’s market capitalization is over 52% of the total. It is the clear winner.
Ethereum Hack
The DAO, or Decentralized Autonomous Organization, was supposed to be a groundbreaking experiment in “blockchain technology”. Launched in 2016 on the Ethereum platform, it aimed to be a self-governing investment fund, raising a staggering $150 million in Ether through a token sale.
However, its innovative nature was soon overshadowed by a critical vulnerability in its smart contract code. A hacker exploited this vulnerability, stealing a massive $60 million worth of Ether.
In a highly controversial move, the Ethereum community ultimately decided to execute a hard fork, essentially creating a new version of the blockchain (Ethereum Classic ETC) where the DAO hack never happened. This effectively reversed the fraudulent transactions and returned the stolen funds to their rightful owners.
However, the decision to hard fork was not without its consequences. A significant portion of the community opposed this intervention, arguing that it undermined the fundamental principles of decentralization and immutability.
Solana Hack
In 2022 a hacker drained funds from approximately 8,000 wallets on the Solana network causing losses of around 8 million dollars. Industry insiders claimed the vulnerability could be a “supply chain attack” that manages to steal users’ private keys. They added that “it’s likely something has caused widespread private key compromise”, and warned that revoking wallet approvals will probably not help. There are numerous examples of these sorts of hacks in Crypto.
Its important to realise that this doesn’t happen on the Bitcoin blockchain. No team of developers can reverse transactions and the true decentralized nature of the blockchain means it is truly safe and secure.
Bitcoin Regulation clarity
Among cryptocurrencies, Bitcoin stands alone with its established regulatory clarity as a digital commodity. Bitcoin-only exchanges can confidently sell BTC to their clients without the risk of a regulatory crackdown.
SEC Chairman Gary Gensler has publicly stated that Bitcoin is the only cryptocurrency with commodity status (which implies other tokens are unregistered securities). While crypto exchanges have regulatory uncertainty hanging over them. In fact, the SEC is investigating Coinbase for listing potentially unregistered securities and lists numerous cryptocurrencies in its filing. This highlights a major risk for crypto exchanges and tokens.
Bitcoin is King
We have the data and history shows that most cryptocurrencies are, on the whole, over the long term, terrible investments. While some cryptocurrencies experience initial surges in value fueled by hype, many fail to sustain this growth in the long term. Measured against Bitcoin, the dominant crypto asset, many altcoins struggle to reach their previous all-time highs measured in Bitcoin terms.
Bitcoin boasts the longest track record and brand recognition within the cryptocurrency space. Additionally, its security measures and long-term performance are often considered superior to many altcoins. While Bitcoin experiences periods of volatility, its price fluctuations tend to be less dramatic compared to other tokens, many of which have lost 95% or more of their value against Bitcoin over time.
At Florin21, we believe in Bitcoin’s potential as a revolutionary store of value and a powerful financial tool. The superior strategy is simply buying Bitcoin and holding it in self custody over the long term.
Instead of pursuing complex or risky altcoins, we advocate for direct ownership of Bitcoin. Buy Bitcoin from reputable Bitcoin-only companies who prioritize security and transparency. By holding your Bitcoin in self-custody, with proper inheritance planning, you gain complete control over your investment and eliminate the risks associated with third-party platforms. We can help with that!
