Thousands of different digital currencies arose in the beginning of the Bitcoin (BTC) formation in 2009. Although the newer assets come with different technologies, new features, and capabilities, Bitcoin still has the upper hand in a major category, according to a report released this November by the cryptocurrency data company (CoinMetrix).
And due to the relatively older framework, people sometimes compare Bitcoin to older versions of other technological innovations, such as the telephony, where the report states: These are part of the deliberate marketing strategies pushed by proponents of emerging digital assets that are said to work where Bitcoin fails. Unfortunately, new entrants who are faced with a rigorous technology comparison framework are finally being pushed to the margins, especially as the discussions have become highly technical.
Technology capacity is important. Cryptocurrencies, with their core chains and ecosystems, act as forms of money or value as well in addition to their technological underpinnings. Therefore, asset allocation plays a major role in the equation, indicates the report published by Queen Telegraph.
and digital currencies have seen countless headlines over the past decade, especially in 2017, when many alternative digital currency assets recorded massive gains for their owners. Many people and teams have produced their own digital assets, some of which compete with Bitcoin's value proposition.
As the Bitcoin name became more popular, the growth of organic assets became difficult. Once people saw the viability of the new assets, what prevented them from allocating different amounts of the assets they created to specific groups, including specific friends or investors? Basically, since some type of financial value is expected at the start of any newly created asset now, these new assets lack equal distribution among people.
The CoinMetrics report looks at the centralization seen in cryptocurrency holdings through data from the blockchain chains of those assets. The report states that favoritism, among other unfair distribution models, inevitably leads to incredibly centralized monetary rules.
The report adds that with data on the chain, we can identify ownership structures in contrast to Bitcoin and determine the degree of wealth centralization within their digital economies.
Basically, Bitcoin started as an unparalleled experience ahead of its time. Very few people understood how the original worked in its infancy. CoinMetrix explained: There wasn't even an exchange rate for early users to begin to understand the valuation of their Bitcoins.
