After the recent Bitcoin halving, which turned out not to move the needle on BTC a whole lot (yet), lots of traders are looking for authoritative voices on the future of Bitcoin.
One of these comes from someone who has been in the public eye as a cryptocurrency guru for years.
Mati Greenspan’s most recent postings in his newsletter for Quantum Economics talk about the uniqueness of Bitcoin and how it’s likely to gain from its position as cryptocurrency front-runner in the years to come. Greenspan has a track record of thought authority on crypto from his days at eToro and is frequently interviewed about coins.
Let’s look at four key characteristics that Greenspan attributes to Bitcoin as he suggests that it’s a good play over all of the other altcoins that have come along.
First, he cites security – the decentralized Bitcoin blockchain has been shown to be incredibly resilient, and not subject to some of the security issues of some of the stablecoins and other cryptocurrency choices rivaling the BTC blockchain.
Then he cites immutability – again, the fundamental transparency of the blockchain ledger means that it’s tough to fake Bitcoin processes and transactions. We don’t often hear about 51% attacks, either, even though enormous Bitcoin mining pools are centrally located in China.
Then, too, Greenspan also cites digital scarcity – the halving of the block reward illustrates how supply and demand work for Bitcoin. This is important in digital assets, because they are not handled by a national central bank … at least not yet.
“There’s a slew of trolls currently tagging me on Twitter who think that a fee of $3.75 is valid reason to jump ship or switch to another standard for digital money,” Greenspan writes. “It’s something that most people transferring bitcoin aren’t even going to think twice about. There are at least three dozen cryptos that are cheaper and faster, but none of them have the security, digital scarcity, immutability or liquidity that BTC does.”
The fourth characteristic is something that does set Bitcoin apart as well – Greenspan also mentions liquidity in the markets. In other words, if there aren’t on-ramps for the average investor, it’s harder for a cryptocurrency to gain ground. We don’t have a lot of Ripple (XRP) and Ethereum investment opportunities that are prominent in today’s consumer financial landscape, but we do have Bitcoin ATMs in cities all across America, so that’s another unique positioning that Bitcoin has in its favor.
Meanwhile, BTC holds its own at around $9600 as of press time – look for more ups and downs in a volatile market.