The ‘problem’ with Altcoins

We’ve been spending some time lately looking through the Nakamoto Institute web site. You could perhaps say (unfairly?) it’s the spiritual home of the “Bitcoin Maxi”.

It has a large amount of excellent references hosted that relate to the goals and design decisions that fed into Bitcoin. For example publications by Ludwig Von Mises on monetary theory.

There are also a series of posts that explain Bitcoin, and some have aged better than others. This one for example explores the relation to altcoins and has this somewhat prophetic statement:

To defeat Bitcoin, an altcoin would require not just superior technology, but such vastly superior technology as to be an advance over Bitcoin comparable to the advance Bitcoin represents over fiat currency.

Makes sense. Bitcoin’s first mover advantage was massive. That led to a significant network effect a.k.a. Metcalfe’s Law. But given enough of a technological benefit the switch could occur.

We’d suggest it’s taken until 2021 for that that altcoin to start to emerge.

Our prediction? The next 10 years are going to be a lot of fun if you are holding .