If you've been following the cryptocurrency market for a while, you've almost certainly come across the word "Bitcoin maximalist." This group of Bitcoin aficionados is firm in their confidence in the world's first cryptocurrency. Bitcoin maximalists can be found anywhere in the crypto community, from message boards to social media.
Bitcoin maximalist
Bitcoin maximalism is a theory focusing on the development of a global monetary system based on Bitcoin that is transparent and accessible. Maximalists imagine a world in which fiat currencies crumble and Bitcoin shines brightly as humanity's torch of hope. It remains to be seen if Bitcoin will ever live up to these high standards, but one thing is certain: it will not fail due to a lack of funding.
A Bitcoin maximalist is an investor who thinks Bitcoin has the greatest chance of becoming a mainstream cryptocurrency. They see Bitcoin's role as the world's oldest, most successful, and well-established network as a motivator for further growth. Bitcoin maximalists are known for their fervent support for the project and their refusal to accept the importance of other coins in the vacuum.
The assumption that Bitcoin will one day be worth an incalculable sum is at the heart of Bitcoin maximalism. Many Bitcoin maximalists are persuaded that Bitcoin would ultimately overtake all fiat currencies as the global medium of exchange. A Bitcoin maximalist is highly unlikely to sell their Bitcoin due to these lofty standards. Instead, they use a technique known as HODL investing (hold on for dear life).
In a HODL investment strategy, you progressively increase your Bitcoin market buy-ins over time. Furthermore, you never sell your money. Although this can seem counterintuitive considering the daily market volatility, it is actually a very profitable strategy. Bitcoin has risen in value from $0.50 per coin to about $57,000 per coin. HODLers profited handsomely during Bitcoin's meteoric rise to fame.
Bitcoin maximalists, for example, assume that $55,000 is just the beginning of the Bitcoin revolution. These investors are hyping up Bitcoin's future with only a quick glance on Twitter. Bitcoin price estimates range from $20,000 to millions on social media, according to maximalists. These investors may be on the right track, given Bitcoin's remarkable growth thus far.
Bitcoin Maximalist Motivation
More than profit motivates Bitcoin Maximalists. They consider Bitcoin to be one of the most important innovations of all time. These investors agree that separating government and money is a smart idea. They consider Bitcoin's far-reaching consequences for monetary economics, censorship, and governance.
Bitcoin maximalists hold Satoshi Nakamoto, the coin's founder, in high regard. They value his decision to remain anonymous in order to protect the project's reputation. They claim that this move was taken to discourage government interference into the platform by corporate regulations. Bitcoin is currently working in a legal grey area around the world. It isn't illegal in most parts of the world, but it isn't accepted as a currency in most of them at the moment.
The start
Although there is no exact date that Bitcoin maximalism started, it is fair to say it began when the second cryptocurrency reached the market. In the beginning, most ventures were simply duplicates of Bitcoin in some way. People started to see different and exciting applications for blockchain technology outside of Bitcoin's position after Ethereum implemented smart contracts.
Bitcoin maximalism received a boost in 2017. The number and value of blockchain ventures exploded this year across the board. This growth was fuelled mainly by Ethereum's ERC-20 token standard, which made the ICO process easy enough for most businesses to participate. The proliferation of channels resulted in a substantial drop in quality across the board.
According to one survey, up to 80% of the ICOs on the market at the time were fake or scams. Bitcoin stood high as a stable and safe home base as more scams, hacks, and defective coding appeared among the competition. With each failed blockchain project, the maximalist voice became louder.
Conclusion
Bitcoin maximalism seems to have a promising future. These Bitcoin lifers don't seem to be planning on abandoning the project anytime soon. This public support has a direct effect on the ecosystem's growth.
Bitcoin's value continues to rise even as newer and more competent platforms enter the market on a weekly basis. Since Bitcoin has captured the hearts and minds of so many crypto users, it's likely that the network can be optimised to suit every situation. One thing is certain: you will not be able to convince any Bitcoin maximalists to give up their coins easily.