Bitcoin $BTC is often referred to as "digital gold" due to its scarcity and security, but the debate over its replacement by superior technologies is one of the hottest topics in the cryptocurrency world. The technology of Bitcoin, launched in 2009, is considered by many to be "old" in terms of computing.
What are the technical paths and challenges through which Bitcoin could lose its crown to coins with more advanced technologies?
👉 Scalability: Bitcoin processes about 7 transactions per second. In comparison, networks like Solana or Avalanche can process thousands.
👉 Energy Consumption: The Proof of Work mechanism requires miners with high electricity consumption. Modern networks use Proof of Stake, which reduces consumption by more than 99%.
👉 Rigidity: The Bitcoin code is difficult to change. This makes it secure but prevents the rapid implementation of new features, such as native Smart Contracts.
🪙 The Candidates for Substitution
Several coins attack the weak points of BTC with innovative technologies, but two stand out:
💎 Ethereum $ETH and Utility: While BTC is just a store of value, Ethereum is a global computer. With the migration to Ethereum 2.0, it has become energy efficient and the basis for Decentralized Finance (DeFi).
Differential: Ability to create applications on top of the currency.
🟣 Solana $SOL and Extreme Speed
Solana uses a technology called Proof of History (PoH). It works like a timestamp on transactions, allowing the network to be incredibly fast and cheap, costing fractions of a cent per transfer.
Differential: Scalability ready for mass use (daily payments).
🪙 The Dilemma of Substitution - technology vs network effect
Despite being technologically inferior, Bitcoin has what economists call the Network Effect and Immaculate Conception (it had no owner or company behind it).
What is your opinion on the subject? #bitcoin
