The Case for Why Bitcoin over Other Cryptocurrencies

Bitcoin, the original and most decentralized cryptocurrency, has long been synonymous with the world of digital currency. While the crypto market has exploded with a plethora of coins and tokens in recent years, there are still strong arguments for why investors might want to consider focusing their attention primarily on Bitcoin. Here's why:

  1. Bitcoin is a commodity (Property): Bitcoin is the only one that is being considered by the SEC as a commodity and not as an unregistered security paving the way for friendly regulation and adoption by large institutions, corporations, and nation states.

  2. Market Dominance: Bitcoin, being the first cryptocurrency, boasts significant market dominance. As of this publishing Bitcoin holds 45.9% of the total cryptocurrency market cap, and signaling for higher dominance positioning it as the strongest player in the space. Its dominance means it often sets the trend for the rest of the market among other things.

  3. Security: Bitcoin's blockchain is the most secure blockchain network in the world. It's been tested for over a decade and has proven to be resilient against multiple kinds of attacks. This is largely due to its enormous amount of hashing power and decentralized network, making it practically impossible to hack. The hash rate at the time of this publication is at an all time high.

  4. Liquidity: With Bitcoin being accepted and traded worldwide, it offers unparalleled liquidity in the space. This means that Bitcoin can be quickly bought or sold without causing significant price changes. This level of liquidity is not something that most other cryptocurrencies can match.

  5. Acceptance and Adoption: Bitcoin has the broadest acceptance among businesses and individuals globally. More businesses accept Bitcoin as a form of payment than any other cryptocurrency, and institutional adoption has also been on the rise.

  6. Limited Supply: Bitcoin has a capped supply of 21 million coins. This hard cap creates a scarcity factor, which can potentially drive its value upward over time.

  7. Legitimacy and Regulation: Bitcoin is often seen as the 'gold standard' of cryptocurrencies, and thus it is the one most recognized by regulators and lawmakers. This recognition can lead to a more defined legal status, which can offer some level of investor protection.

  8. Stability & Growth: The network has never been stronger and the fundamentals have never looked better than they do today. While the FIAT price of Bitcoin can fluctuate, it's not as susceptible to the wild price swings that can affect smaller coins.

  9. Counter party risk: With all other cryptos you are exposed to counter party risk on multiple levels, if not directly being scammed by a shady “team” of developers and off shore shell organizations beyond the reach of the law. Almost all of the other cryptos have an organization behind that has the power to modify the blockchain to their advantage be it change the supply, freeze or block transactions, etc. With Bitcoin you have no counter party risk if you take custody of your coins with a hardware wallet.

  10. Proof of Work: This means the only way to acquire other than buying it is through mining which in turns secures the network even more therefore raising the value of the network.

  11. Bitcoin was not an Initial Coin Offering “ICO” like many popular cryptos have huge investors that bought a preferential prices ready to dump coins on the retail market as soon as the price goes up.

In conclusion, while the allure of newer cryptocurrencies with potentially higher returns can be enticing, they often come with greater risks and uncertainties. Bitcoin, with its long history, broad acceptance, security, and stability, offers a safer bet for those considering an investment in cryptocurrency.

A fun story about Ethereum’s controversial beginnings and why there is no second best

The DAO was a decentralized venture capital fund where investors would receive voting rights on which projects the DAO would fund. It was built on the Ethereum blockchain and raised a significant amount of Ethereum's native token, Ether (ETH), during its own crowd sale in 2016, which was an astonishing success.

However, in June 2016, an unidentified individual or group exploited a vulnerability in the DAO's smart contract. This vulnerability was a recursive calling vulnerability, which allowed the hacker to drain funds from the DAO into a "child DAO" that they controlled. Around a third of the DAO's funds were siphoned off this way, equivalent to around $50 million at the time.

The Ethereum community was left with a tough decision. They could either let the hack stand, preserving the "code is law" ethos but allowing the hacker to make off with a significant amount of money, or they could essentially "rewind" the blockchain to before the hack occurred, returning the stolen funds but arguably undermining the immutability and decentralized principles of the blockchain.

In the end, the community voted to implement a hard fork, creating a new version of the Ethereum blockchain where the hack had never occurred. This version became what we know today as Ethereum (ETH). However, some members of the community rejected the fork and continued to maintain the original blockchain, which became Ethereum Classic (ETC).

The DAO hack was a significant event in Ethereum's history, and it sparked numerous debates about blockchain security, the responsibilities of developers, and the principles of decentralization and immutability.

The SEC sues Coinbase and Binance for selling unregistered securities (alt coins)

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