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Bitcoin and smart contract platforms don’t compete in the same market.
Let’s examine the differences:
Thread
Let’s examine the differences:
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1/ BTC is a store of value, like digital gold. It has found product-market fit and has virtually zero competition.
Smart contract assets get used as gas. They’re finding early product-market fit in DeFi and NFTs.
Smart contract assets get used as gas. They’re finding early product-market fit in DeFi and NFTs.
2/ Any competitor with the message “a better Bitcoin” is struggling in the market (e.g., BCH, BSV).
Smart contracts, however, have intense competition. Ethereum is the clear leader with other platforms at ~50% fully-diluted market cap of Eth.
Smart contracts, however, have intense competition. Ethereum is the clear leader with other platforms at ~50% fully-diluted market cap of Eth.
3/ Zero corporate treasuries are buying anything other than BTC as a store of value. One clear winner.
NBA issued NFTs on Flow; the Marshall Islands issued their digital currency on Algorand etc. Use cases on several platforms.
NBA issued NFTs on Flow; the Marshall Islands issued their digital currency on Algorand etc. Use cases on several platforms.
4/ Bitcoin needs no change to the code base to continue growing as a store of value. Simplicity & durability of the base layer are features.
The feature set for smart contract platforms is far from being complete. Eth 2, for example, has been in R&D with several alternatives.
The feature set for smart contract platforms is far from being complete. Eth 2, for example, has been in R&D with several alternatives.
5/ Bitcoin and smart contract platforms operate in very different markets. Bitcoin has virtually no competition, while smart contracts are evolving with several options.
P.S: This is not an attack on <pick your favorite project>.
P.S: This is not an attack on <pick your favorite project>.
6/ A mistake that new people in crypto make is to look at Bitcoin and then go like “what other smaller crypto like BTC can I find?”. Answer: there is no other store of value.
There are smart contract platforms, DeFi protocols, exchange tokens, etc., but no other Bitcoin.
There are smart contract platforms, DeFi protocols, exchange tokens, etc., but no other Bitcoin.
