Chris Kuiper, head of analysis at Constancy Digital Belongings, is satisfied that Bitcoin (BTC) must be handled individually from different digital property and believes it performs an unique function in buyers’ portfolios.
Constancy Digital Belongings’ newest report, titled “Bitcoin First,” targets two primary issues that Constancy’s purchasers have raised about BTC: ultimately being changed by another cryptocurrencies and decrease upside potential left in comparison with different cash.
In line with Kuiper, BTC affords a singular worth proposition as essentially the most decentralized and censorship-resistant financial community. That, in response to him, is a non-incremental kind of innovation just like the invention of the wheel.
“You may’t reinvent one thing that’s already been invented by way of essentially the most safe, most decentralized and what we think about as the very best financial good within the digital asset area,” he mentioned.
Whereas different cryptocurrencies could have larger upside potential, as Kuiper identified, they’re additionally subjected to larger dangers and must be regarded extra like enterprise capital bets.
Kuiper believes that whatever the future growth of the blockchain ecosystem, BTC is more likely to come out as a winner. In a multichain state of affairs, the place a number of blockchains will coexist, Bitcoin will nonetheless be the primary “cash anchor” for different digital property.
“On the finish of the day, the factor that offers these different tokens or initiatives worth is that they will one way or the other 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 seemingly be the go-to protocol for constructing most blockchain purposes.
Kuiper additionally factors out that BTC’s 13 years of existence have considerably diminished the draw back dangers predominantly tied to BTC investments. Alternatively, its upside potential should still be important, particularly in case it step by step replaces gold as a retailer of worth.