4 min reading
Discover all things considering Bitcoin maximalists and their differences from other crypto community members.
Who are the maximalists?
The crypto industry is something more than the largest markets by capitalization, charts, and constant fluctuations in exchange rates. There are also so-called Bitcoin maximalists. This name often raises a lot of questions, so it’s time to clarify the situation.
Who are they?
Bitcoin maximalists are real people who differ from other members of the crypto community by a rigid ideology in support of a single cryptocurrency. This is the one who primarily values Bitcoin. Although this description is suitable for most users and cryptocurrency investors. In this term, “ideology” goes a little deeper. Usually, Bitcoin maximalists are not particularly concerned about the new and more advanced technologies of alternative cryptocurrencies. Therefore, altcoins or other cryptocurrencies seem superfluous to them.
Bitcoin is everything
At the heart of this ideology is Bitcoin – the only cryptocurrency that is decentralized and has value, and Altcoin, according to many maximalists, hinders the development of Bitcoin. Even such popular projects as Litecoin, Ethereum, Monero, or the harmless Dogecoin are considered fraud. Moreover, bitcoin maximalists are sure that over time the world will switch to using a single cryptocurrency and it will be Bitcoin. Bitcoin is the most widely known cryptocurrency in the world, chiefly because it is valuable. But for a maximalist, it’s actually not a single reason to think of it as their rescuer. There are many other aspects that motivate users to become bitcoin maximalists. One of the main reasons maximalists keep bitcoin supportive is due to the fact it’s matchless.
You don’t have to get permission to send payments through bitcoins. With bitcoins in your portfolio, nobody can expropriate your assets. Because of its anonymity, it is quite difficult to track anyone’s holdings. With bitcoin, the user fully owns his or her assets without third-party access. This makes bitcoin a sovereign asset. According to experts, today the crypto community is divided into two types of maximalists — ideological and principled. Let’s see who they are and what impact they have on the industry.
Ideological maximalists believe that their digital money (usually Bitcoin) is “the truest cryptocurrency”, so all other altcoins are a priori scams that will never be able to take a leading position in the crypto market! Ideological maximalism emerged when Bitcoin first appeared on the crypto-currency market. That was a time when altcoins really didn’t represent any value. The past status of bitcoin has led to fanaticism, which was justified only by the huge growth of this cryptocurrency. However, over the past few years, the cult of bitcoin among ideological maximalists has come to naught, because new cryptocurrencies such as Ethereum, began to offer truly innovative features and won huge user attention in the market.
Tuur Demeester, editor-in-chief of Adamat Research, gave an example of principled maximalists. In April 2017, he wrote: “Due to various network effects, I am taking the maximum position in cryptocurrency, believing that one protocol will eventually win over 80% of the market. With this in mind, I currently have a binary view of the ecosystem: either Bitcoin or Ethereum will win.”
Judging from his words, principled maximalists differ from ideological ones by three criteria. First, principled maximalists believe that long-term cryptocurrency maximalism will arise because of the network effects power, and not because a specific cryptocurrency is supposed “one true”. Secondly, altcoins are not canceled and are not considered scams.
They provide some value, so the position of the principled maximalists is that the top cryptocurrency will capture more than 80% of the market in the long run, and not all 100%. And third, a long-term position can be captured by any cryptocurrency, not just Bitcoin.
Many people are wondering how Maximalist affects the bitcoin market. Maximalism is a mark of trust and faith blindly. Any currency not controlled by anyone just takes off based on trust and faith. Bitcoin maximalists play a highly important role in supporting its general growth. Some people even say Bitcoin’s export growth is associated with its loyal maximalist. Although this is strongly speculative and no sources have confirmed this news.
However, the main rule of bitcoin maximalists is that only Bitcoin can be used to create something new, all other methods are unethical. Nowadays, new cryptocurrencies are developing on the market and are improving every day. Hence it gives us hope that true decentralization is possible when there are many competing projects of money and not a single one.