In the digital financial market, the performance of bitcoin is appreciable because of the constant increase in the market value of this crypto token. Even during COVID-19, the market chart of BTC is inclining in contrast to other investment instruments of the market. To get features like phenomenal trading calls, a live customer care support and better tips for trading you can visit platforms like Buy Bitcoins. As a result, Bitcoin has been dubbed the “digital gold,” “digital currency,” and “crypto-currency” in the market.
Even though bitcoin has dramatically increased its performance, it still needs time to move on further. In addition, it is still far from the price of gold because it is rarer than physical gold. The performance of bitcoin reflects on many investment instruments according to their influence on the price prices of crypto-currencies. Most investors consider bitcoin’s price values and performance during high times as a reference while experiencing negative periods in their financial activities and investments.
Bitcoin maximalism is a theory that supports the investment of bitcoin to make high returns in the financial market. The term “bitcoin maximalism” was first used and described by Constantin Gurdgiev in a paper written in May 2017. At that time, the bitcoin price had reached over $20,000, and its market capitalization was higher than $180 billion.
Understanding Bitcoin Maximalism:
The advocacy of this theory suggests that it is possible to achieve rapid growth in the financial market if you invest in bitcoin. In addition, investing in bitcoin will lead you to financial success and allow you to accumulate wealth. Maximalists think that bitcoin’s design has made it immune from any form of manipulation or attacks. It is because bitcoin is based on a set of rules defined in the protocol, which cannot be modified.
Maximalists believe that bitcoin can overcome all other cryptocurrencies in the market. As a result, it has motivated many investors to invest their money in it rather than spend it on various market tokens. Bitcoin maximalism allows you to maintain your wealth and prevents it from any form of loss while maximizing your investment opportunities through the use of bitcoin.
First, it is because it has an unlimited supply, decentralized control, and no limits on the ability to transfer or use the crypto token. Moreover, maximalists think that bitcoin’s design makes it immune from attacks by rival cryptocurrencies. Finally, it is because bitcoin is based on a set of rules defined in its protocol and cannot be altered.
Reasons for bitcoin maximalism:
Maximalists perceive bitcoin as a tool that is the only one that people can use to achieve financial success. The bitcoin design allows for a long-term approach that provides maximalists with guaranteed profit in their financial activities and investments. Maximalists think that using this crypto-token in their business needs will help them gain high profits because of its continuous increase in market value.
In addition, bitcoin has reached an unprecedented level of appreciation compared to other financial instruments such as precious metals and fiat currencies. The maximalists believe that the high appreciation of bitcoin is its limited supply. In addition, this crypto token cannot be replaced by an intangible currency. It is because it goes against the rules defined in the protocol.
Bitcoin’s network:
Bitcoin’s protocol is based on interconnected algorithms and transaction blocks (blocks). It enables the evolution of bitcoin and consequent increases in its network performance. Transaction blocks are created to incentivize miners to provide a service to the network, such as verifying transactions.
Miners compete to provide this service because they receive transaction fees in return. The more transactions are verified, the greater reward for the service. Therefore, this crypto token cannot be easily replaced by any other market. Maximalists believe that as long as bitcoin remains immune to modification, it will continue to dominate the cryptocurrency market. In addition, they also believe that bitcoin may eventually replace some traditional financial services and commodities such as gold and fiat currencies.
Bitcoin is well-established:
Minimalists think that the level of bitcoin’s development and concentration in the market has made this crypto token dominant compared to other tokens. According to them, bitcoin has successfully established itself in the financial market because it has survived the instability of other crypto tokens.
The minimalists see bitcoin as a cryptocurrency with stable value. Minimalists believe that as long as bitcoin maintains its dominance over other cryptocurrencies, its performance will likely continue to increase and become more popular among investors.
