There is an eternal debate as to whether some altcoins are better than Bitcoin and could eventually replace it as the number one crypto asset.

Most people defending this argument are either biased token holders or misinformed newbies with enough skin in the game and naivety to be blinded by the bells and whistles of these new assets.

Bitcoin is an old technology that, like the fax machine or the video recorder, will be replaced by something faster, cheaper, and better… according to some.

These people fail to understand why a monetary asset gets to the top and how once there it is almost impossible to replace it.

Money is a winner takes all game. We have seen this with the dollar and with gold. There is only room for one.

Here are the reasons why.

1. Network Effects

According to Metcalfe’s law, the value of a network is proportional to the square of the number of connected users of the system.

Bitcoin is by far the biggest distributed network with thousands of nodes and miners. It has also more than 100 million users spread all over the world.

But not only that. Bitcoin has become the standard protocol for the internet of money.

Once a technology achieves this status there is no turning point. It’s a winner-takes-all world.

Yes, some altcoins might carve a small niche here and there, but trying to guess which one will survive is enough reason to stay away altogether and avoid becoming broke in the process.

We are still using the internet TCP/IP protocol devised in the 70s because the cost of changing the base protocol would be prohibitively expensive. It’s more feasible to change the application layer while leaving the foundations untouched.

Bitcoin is the TCP/IP of digital money and there is only room for one. There is only one fire, one wheel, one electricity, one internet, and one Bitcoin.

There is no second best.

2. Regulation

Bitcoin is a commodity, everything else is a security.

Altcoins are pre-mined, controlled, and manipulated tokens managed by insiders who can adjust the supply and dilute the value of the asset.

That’s exactly the definition of a security and this is why there are strict regulations about how these can be issued, negotiated, and traded.

According to the SEC Chair, Gary Gensler, the only true commodity out there in the crypto world is Bitcoin and this has implications for all the other coins.

When all those tokens are officially declared securities and have to go through stringent requirements to become legal, it’ll be the end for most of them.

Perhaps Ethereum and a few others could survive the Howey test but everything else will certainly collapse once they have to meet the criteria.

Ironically, Bitcoin, a permissionless and censorship-resistant network, could be the great beneficiary of this legal battle.

3. Vector Attacks

Bitcoin is the only decentralized financial asset ever created (discover). Everything else is centralized with a founder’s team, headquarters, and central servers running the operation.

It’s relatively easy to attack a centralized entity. It’s almost impossible to attack a distributed network successfully.

Altcoins have been attacked by hackers and governments and they lack the infrastructure to defend themselves.

4. Centralized Corruption

Another vector of attack comes from inside. The owners of any token can decide to manipulate the price, do a rug pull, or dilute the value by increasing the supply.

Since they are in control, you have to trust their good intentions and honesty.

Unfortunately, humans with power and money do inevitably become corrupt and this is why Bitcoin, thanks to its trustless technology, is the only one that is safe from shenanigans.

Do not trust, verify.

5. Competition

Bitcoin is the internet of money, the base protocol for financial transactions, and the best store of value ever discovered.

Everything else is competing for the same niches; smart contracts, DeFi, and NFTs but this place is getting very crowded.

Do we really need 20,000 tokens to show pics of a retarded monkey?

There is not enough room for this market and 99% of altcoins will eventually go to zero. The problem is which ones?

With Bitcoin, you don’t have to pick. You already know the winner. And the winner takes all.

6. The Lindy Effect

When something has been around for 10 years, it’ll most likely be around for another decade at least.

Bitcoin is the oldest and the first crypto asset out there and therefore the most likely to survive according to the Lindy Effect.

14 years might not sound like much but in technology, this longevity is a huge deal. Most technological trends fade in less than 5 years.

Bitcoin was very risky and fragile for the first few years but after surviving 3 bear markets, exchanges going down, many projects collapsing, and all sorts of attacks nobody doubts now that Bitcoin is unsinkable and will be around for a few centuries at least.

Everything else is extremely fragile in comparison. Out of the 20,000 altcoins, most will inevitably collapse. Trying to pick a second best is a dangerous proposition.

7. Value

Bitcoin is worth more than all other alts combined. That tells you something.

Do you think your Mom & Pop’s pizzeria will take over Pizza Hut eventually? Do you think Pirri-Cola will win against Coca-Cola? Do you think DuckDuckGo will steal market share from Google?

Exactly.

There is a reason why the Bitcoin market cap is worth $400 Billion and this is only going to increase steadily for a long time to come.

Everything else is a risky experiment that is not worth partaking in.

Conclusion

There is a reason why Bitcoin is number one and will remain in this position forever.

Investing in altcoins is like going to the casino, you could have a lucky break but most likely you’ll lose your shirt.

Bitcoin is the only decentralized, the most secure, and the chain with stronger fundamentals. Everything else is a centralized Ponzi scheme that can be rug pulled at any time.

When people start issuing tokens out of thin air, without proof of work, and without any limits or backing, the bubble starts inflating until it eventually collapses.

Bitcoin is the soundest money we humans have ever discovered, only gold has similar characteristics but Bitcoin is digital.

Anyone can mint a token, call it Bitcoin killer, and FOMO about it until some suckers buy it.

Bitcoin is exactly the opposite. To mine it, you need to buy expensive equipment, use electricity and be patient. Proof of work can’t be cheated. Bitcoin is expensive to make. Altcoins cost nothing. That’s the difference.

It’s easy to follow the allure of easy money and fall for the trap of a fast-growing asset but don’t fool yourself. If it’s too good to be true, it’s a scam.

Fool’s gold is not gold. A Chinese knockout is not a Louis Vuitton. And Bitcoin is NOT crypto.