Modern Economic Nonsense — Why Bitcoin Maximalism will fail

xuanling11
Coinmonks
Published in
4 min readJul 9, 2022

--

The idea of a digital currency that can be used for payments is a very compelling one. Financial inclusion has become a major focus of the developing world, and many companies are trying to solve the problem through digital currencies. The most well-known is probably bitcoin, but there are several altcoins as well. However, as with any new technology, there are two primary challenges: educating people about it and convincing them to adopt it. Educating people about digital currency is not so hard these days, thanks to things like podcasts and Youtube videos. It’s convincing them to adopt it that has proven to be the harder part — and the more important one as well. If you think about it, adopting new payment systems involves a lot of hassle for very little benefit. When you compare card networks where merchants have accounts in exchange for processing transactions on their behalf, or even cash where merchants don’t need any sort of account at all, it becomes pretty clear why adoption has been slow. However, when you compare these alternatives to cryptocurrencies, which offer total anonymity and make paying by phone or the internet much easier than paying with cash, adoption may seem more attractive. We’ll explore why digital currency adoption will fail without thinking outside the box and embracing some core concepts that are often overlooked.

Why Bitcoin Maximalism will fail

There are many reasons why Bitcoin maximalism will fail. Let’s explore why some will fail, and some will succeed at adopting digital currency. For starters, Bitcoin maximalists tend to focus on the wrong reasons for why Bitcoin is popular. They point out that the price of bitcoin is high and that it’s valuable. While these are both true, they’re not very compelling reasons. What people really want is financial inclusion and convenience — they want to be able to use Bitcoin to buy a coffee without having to take their laptop or smartphone with them or use card networks that are difficult to use for the unconnected. The truth is that Bitcoin maximalists often focus on the wrong reasons. They often talk about the power of Bitcoin because it sounds more powerful and important than it really is. Also, ignoring the development of altcoins jeopardizes the future of blockchain development.

--

--