The experimental launch of Bitcoin contributed to its dispersion among the masses.
Thousands of different cryptomontages have emerged since the Bitcoin Genesis Block (BTC) in 2009. Although the newest assets come with different technology and new bells and whistles, Bitcoin still has an advantage in a key category, according to a November report from the crypto-data firm, Coin Metrics.
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Because of its relatively older framework, people sometimes compare Bitcoin to older, outdated versions of other technological innovations, such as dial-up Internet, the report explains:
„Too often, these are part of deliberate marketing strategies driven by advocates of emerging cryptoactives that supposedly succeed where Bitcoin has failed. Tragically, newcomers confronted by a strictly technological framework of comparison are ultimately pushed to the margins, especially when the debates become hyper-technical. “
Technological capacity is important. However, crypto currencies, with their underlying block chains and ecosystems, also serve as forms of money or value in addition to their technological base. Therefore, asset distribution plays a key role in the equation, the report notes.
Cryptomonies have made headlines over the last decade, especially in 2017, when many alternative cryptoactives made huge profits for their holders. Many individuals and teams have produced their own digital assets, some of which compete with Bitcoin’s value proposition.
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However, when Bitcoin became a more household name, organic asset growth became difficult. Once people saw the viability of new assets, what prevented them from allocating different amounts of their created assets to certain groups, including specific friends or investors? Essentially, because some kind of financial value is expected at the beginning of any newly created asset now, these new assets lack uniform distribution among individuals.
The Coin Metrics report analyzes the centralization observed in cryptomoney holdings through data from the respective block chains of those assets. „Chronology, among other unfair models of supply distribution, inevitably results in incredibly centralized monetary bases,“ the report explains.
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„Through the chain data, we can identify ownership structures that are antithetical to those of Bitcoin and quantify the degree of centralization of wealth within their digital economies,“ the report adds.
Basically, Bitcoin started as a different experiment than any other before its time. Very few people understood how the asset worked from the beginning. „There wasn’t even a rate of change for early adopters to begin to understand the valuation of their Bitcoins,“ explained Coin Metrics:
„Along with the technical complexity mentioned above, the results of the first experiments with Bitcoin were disastrous: there’s an exorbitant amount of BTC believed to have been permanently lost during that period. The operators, after all, treated Bitcoin as it was then: a curious experiment in digital monopoly money.
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Through graphics and examples, the report explains Bitcoin’s initial journey, which produced a vast distribution of coins. Mining activities have also impacted the dispersion of the asset. However, the data in the report is largely based on the analysis of the direction of crypt coin portfolios. Sometimes participants use multiple wallets and directions, so the accuracy of the results remains questionable.
Cryptanalyst, trader and YouTuber, Tone Vays, has also expressed similar points in the past about Bitcoin’s decentralization.
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