Why Bitcoin only?

Grayson McLeod·13 Nov 2020Share

As of writing it is around 6 months since Bitcoin’s 3rd halving, and many speculate that we are entering it’s next bull cycle. That being said, we felt it was time to cement one of our core foundations before things get wild: being Bitcoin-Only. The allure and temptation of adding altcoins during this time may be too high to resist for some, but a strong point for everyone at paybtc is that being Bitcoin-Only is non-negotiable.

Being Bitcoin-Only means paybtc is entirely focused on Bitcoin, on security for Bitcoin, and on exploiting and offering innovations that arise from Bitcoin. Payment rails on the Lightning Network are one example of this. Leveraging the extensive security work within Bitcoin for securing the payment rails used by paybtc is another. By being focused on Bitcoin, we are able to deliver rapidly and innovatively because our efforts are all delivering on one monetary technology.

As Bitcoin breaks to new ATH’s (whether it be sooner or later), the masses and ‘experts’ will also inevitably try to justify price on arbitrary external factors, while completely missing the core truth: Bitcoin is the hardest money to ever exist.

Everyone comes into Bitcoin for different reasons, but it can typically be simplified down into two: curiosity and necessity. Both of these are centered around a fundamental flaw with our fiat currency systems but still depends largely on the individuals’ circumstance. Whether you are Paul Tudor Jones or Michael Saylor or a retiring Boomer or a hyperinflation refugee, you come into Bitcoin on the basis that it is insurance against the legacy financial system failing.

Something that will also become increasingly obvious as time goes on is that altcoins were created for the sole purpose of tricking mis-informed people into giving up their Bitcoin for something “better”. Spoiler alert, there isn’t, and there won’t be (for a long long time, if ever). One of the best analogies for Bitcoin is that it’s acting as a financial black hole, as it sucks in all forms of wealth currently used as a store of value/bearer asset. A good article relating to this is ObiWan Kenobit’s “Hyperbitcoinization: Winner Takes All”, where he outlines a ‘tipping point’ that reflects the cost of rejecting Bitcoin exceeds the cost of adopting it.

“If you see fraud and do not say fraud, you are a fraud.” - Nassim Taleb

Due to the nature of the free market we have also seen the rise of numerous Bitcoin copy-cats, and other projects who promise to solve “problems” of Bitcoin. What these projects don’t realise is that, while you may be able to copy the code, you cannot copy 10 years of organic growth and network effects into your own system. This is where Bitcoin diverges from “crypto”.

Bitcoin hash rate

The Bitcoin (BTC) vs Bitcoin Cash (BCH) hashrate chart is a perfect example of what happens when you try to outcompete Bitcoin’s organic growth. Bitcoin’s “immaculate inception” is a one-off event, and when considering the natural outside stressors that have hardened it into the antifragile network that it is today it mirrors a discovery more than an invention or product. There can, and will only be, one Bitcoin. Due to the nature of network effects it is also impossible to ‘catch up’ to Bitcoin, as it is getting smarter, faster, and stronger at an exponential rate. The Bitcoin network itself is a positive feedback cycle which can be summed up in the simple phrase: number go up.

Alongside this, we also see lots of hype and speculation surrounding “blockchain technology” as a threat to Bitcoin. These ‘blockchain projects’ with all the bells and whistles that have followed act as traps to those unfortunate enough to do enough due diligence in their Bitcoin research, and are usually those who are more interested in quick gains. ICO’s cryptokitties, IEO’s, and more recently Defi are all examples of a “move fast and break things” model that is prevalent throughout the “blockchain industry”. Bitcoin, however, choses to move slowly and get stronger. That being said, who wants to store their value in the second or third most secure monetary network?

Saifedean summarizes “blockchain technology” quite well in his book ‘The Bitcoin Standard’:

A non-Bitcoin blockchain combines the worst of both worlds: the cumbersome structure of the blockchain with the cost and security risk of trusted third parties...It is no wonder that eight years after its invention, blockchain technology has not yet managed to break through in a successful, ready-for-market commercial application other than the one for which it was specifically designed: Bitcoin”
Blockchain decision chart

You are still early if you are reading this in 2020. Bitcoin is still such a small percentage of global markets as a whole, and we are only just beginning to see the mainstream media consider it as a contender against gold and other SOV (which we all know aren't as good a money as Bitcoin). Being this early in a paradigm shifting creation such as Bitcoin brings a lot of responsibility, and being Bitcoin-only is really the first step in the right direction. If you're able to buy bitcoin, you're early: eventually the only way to get it will be to earn it.

Bitcoin will win regardless of the actions of people and businesses down to an individual level, however, there is still somewhat of a moral duty to actively support this global shift rather than take the easy money and run through altcoin gambling. If we know that money converges to a single medium, then why not adopt and build on the hardest one from the beginning?

If your friend or coworker asks you about “cryptocurrency”, explaining Bitcoin to them and suggesting Bitcoin-only exchanges, services, and information sources will help make a difference. It is also important to keep in mind that everyone has a different “aha!” moment when learning about Bitcoin. Below are some of our favourite online resources for directing people new in the space: