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Confessions of a former Bitcoin Maximalist - Part 3




Is Bitcoin Maximalism A Cult?


The majority of Bitcoin Maxis are very intelligent and they have a great grasp of economics, history and what makes sound money. However, some Bitcoin Maxis take it too far. They take it to extremes, bordering on cult-like behaviour. The Bitcoin Maxis that are very reasonable, intelligent and respectful are great for Bitcoin. In this instance, I am referring to the developers and true builders that make Bitcoin great. The human capital that Bitcoin has is unmatched.


The Bitcoin Maxis that are cult-like are not. These maxis are more likely to be the DCA, Hodl type, that are common on Twitter.


Bitcoin Maxis, that are just about DCA and Hodl have a few simple mantras like:


"Shit Coiners"


"It's a Scam"


"Bitcoin Only"


A few catchy mantras is all it can take to turn an innocent mind into a Bitcoin Maxi. When you consider that most people are looking for something to believe in. Bitcoin can be something that can give young, impressionable minds, hope and meaning.


I believe this to be the case, certainly more so considering the environment that we find ourselves in. The world has been a mess, the last few years. With the pandemic, travel restrictions, war, sky high money printing, high inflation etc. The results and backlash to these items could be leading reasons for the respect for authority figures and government to be at all time lows.


Sound money is a very important cause, and it will help the world but being 'Bitcoin Only' is not healthy. Choosing to invest some of your income is smart but to go all in on Bitcoin and to shut your mind off completely to any other data, facts or information, to anything else in crypto, is a recipe for disaster.


You will get to a certain point where you just won't learn anything new. You will just keep repeating your mantras and keep your head stuck in the sand. We always need to be questioning things otherwise you can't grow.


I started to question things because I kept seeing 'Money is a winner take all market.' For some reason, this made me think critically about Bitcoin.


I don't believe governments will ever give up on their currency. I do believe their currency could be backed by 'something', such as a basket of energy, gold, Bitcoin, a mix of cryptos. This is the process that got me to start re-exploring different alt coins.


I have great faith in Bitcoin. I believe it's the best savings technology ever invented. But I also support Litecoin because it has strong fundamentals. I could no longer say it doesn't have a future. The network is growing faster than Bitcoin. Its fundamentals are at or near ATHs: Things such as its active addresses, mining hashrate, daily transactions. This is what I care about. And it's something I could no longer turn a blind eye to.


Once I started digging deeper I became aware that Litecoin really has some advantages over Bitcoin. Things such as:

  1. No founders stash

  2. Merge mined with Doge, giving it a form of stability in case transaction fees aren't enough to secure the network, once the block subsidy ends.

  3. Can process 4x the amount of transactions (More now with MWEB) and 4x quicker confirmation times.

  4. 100% uptime

  5. Opt in privacy with MWEB

  6. Founder is known

  7. At historical low valuations.

  8. No premine


These are substantial advantages and more people will start seeing this.


The price performance of Litecoin tells me it's undervalued, more than anything else. I see it as a true opportunity. Almost as good as being a 2012 type Bitcoin investor.


I view Bitcoin as the best savings technology ever invented. However, I acknowledge it's not perfect. Without further improvements to the base layer it will never be the world's currency for daily commerce. Litecoin is built for payments and has greater utility for on-chain payments. If you enjoyed this article, send me a tip, in Litecoin.


Cheers


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This article is my opinion and is not financial advice.

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