Bitcoin Maximalists

Bitcoin Maximalists


What is Bitcoin Maximalism?

Bitcoin Maximalism is the movement created by hardcore Bitcoin enthusiasts who consider BTC the only valuable cryptocurrency. They believe that other cryptocurrencies don’t embody the ideals established by Bitcoin creator Satoshi Nakamoto, and are thus inferior to bitcoin. 

The Principles of Bitcoin Maximalism

The philosophy behind Bitcoin Maximalism is based on a set of beliefs that have grown in popularity within the community since the very first block was mined. These principles are based on the understanding and interpretations of those found in the Bitcoin whitepaper.

Individuals may interpret these principles differently from each other, or prioritize certain principles over others. 

1. The Bitcoin network is secure

One of the most popular principles is the security provided by the Bitcoin blockchain. The network has been running for a decade and has never been hacked or had a major security breach. 

The network is secured by a Proof of Work consensus mechanism which makes it prohibitively expensive for an individual or organization to tamper with the ledger, but cheap for users to verify that all transactions on the ledger are legitimate.

2. Bitcoin is the future of money

They consider bitcoin the only currency that matters and speculate that it will eventually replace fiat currencies. This is due to BTC’s fixed supply — there can only ever be 21 million bitcoins in circulation. In contrast, governments can print fiat money at their discretion, diluting the value of the currency. 

Maximalists also refer to the fact that bitcoin has the largest market capitalization, first-mover advantage, and pristine security performance as some of their main arguments behind this thesis. 

3. The network is decentralized and transparent

Bitcoin is arguably the most successful decentralized cryptocurrency created.

The decentralized nature of Bitcoin means that there is no single person or entity that has control over the blockchain, making it less susceptible to manipulation by others. 

Furthermore, the network's permissionless nature ensures that there are no gatekeepers either. Anyone with an internet connection can hold, send, and receive bitcoins. The public can also view all transactions that have ever taken place, making it a transparent monetary system.

4. Participants are pseudonymous 

Individuals are not required to provide identification to own or participate in the blockchain. It is important to note that the Bitcoin ledger is not anonymous as all data is available publicly, but the true identities of those who hold and manage Bitcoin wallets aren’t public.

5. BTC is a viable payment method

Bitcoin can be used as a payment method by anyone and is often cheaper than international wire transfers. Bitcoin maximalists encourage individuals and businesses to accept and use bitcoin as payment to increase the network's activity and reach.