Chris Kuiper, Head of Analysis at Constancy Digital Property, is satisfied that Bitcoin (BTC) needs to be handled individually from different digital property and believes it performs an unique position in buyers’ portfolios.
Constancy Digital Property’ newest report, titled Bitcoin First, targets two important issues that Constancy’s purchasers have raised in the direction of BTC — ultimately being changed by another cryptocurrencies and decrease upside potential left in comparison with different cash.
Based on Kuiper, BTC affords a singular worth proposition as probably the most decentralized and censorship-resistant financial community. That, in keeping with him, is a non-incremental form of innovation just like the invention of the wheel.
“You possibly can’t reinvent one thing that is already been invented when it comes to probably the most safe, most decentralized and what we take into account as one of the best financial good within the digital asset area,” he stated.
Whereas different cryptocurrencies could have larger upside potential, as Kuiper identified, they’re additionally subjected to larger dangers and needs to be regarded extra like enterprise capital bets.
Kuiper believes that whatever the future growth of the blockchain ecosystem, BTC is prone to come out as a winner. In a multi-chain state of affairs, the place a number of blockchains might be coexisting, Bitcoin might be nonetheless the primary “cash anchor” for different digital property.
“On the finish of the day, the factor that provides these different tokens or initiatives worth is that they’ll by some means tie again to bitcoin, both be transformed again to Bitcoin,” he defined.
Within the case of a winner-takes-all state of affairs, Kuiper thinks BTC will probably be the go-to protocol for constructing most blockchain functions.
Kuiper additionally factors out that BTC’s 13 years of existence have considerably decreased the draw back dangers predominantly tied to BTC investments. Alternatively, its upside potential should be important, particularly in case it can regularly change gold as a retailer of worth.
Watch the complete interview on our YouTube channel and don’t overlook to subscribe.