• The article argues that Bitcoin should not be conflated with other cryptocurrencies, as the underlying open-source software of each asset has distinct characteristics.
• The article points out that Bitcoin is designed to minimize uncertainty and features a simple ledger architecture with an auditable supply of BTC.
• The article critiques the speculation on exchanges like FTX and its role in the crypto economy crisis, but implies that this speculation should not detract from the potential of Bitcoin to be a better alternative to the status quo.
The crypto economy is currently facing a crisis, with the value of Bitcoin, Ethereum and Luna crashing in May. These three assets rely on cryptography and varying degrees of decentralization, and all three of these assets experienced sharp declines in trading prices on exchanges like FTX. However, it is important to recognize that Bitcoin, Ethereum and Luna are not one and the same. Bitcoin is an open-source software that is specifically configured for minimizing uncertainty with conservative parameters and a constrained feature set. This simple ledger architecture results in an auditability of BTC, making it a good alternative to the status quo. Ethereum, on the other hand, is optimized for cutting-edge experimentation and a wide range of programmable features, but its complex ledger architecture results in an unauditable supply of ETH. Finally, Luna was programmed to automatically hyperinflate to prop up the value of a stablecoin, Terra.
The scandalous collapse of FTX has caused many to question the potential of Bitcoin and other cryptocurrencies, and it is clear that speculation on exchanges has played a role in the crisis. However, it is important to remember that Bitcoin and other cryptocurrencies are distinct technologies that represent different opportunities and outcomes. While speculation on exchanges is an important part of the crypto economy, it should not detract from the potential of Bitcoin to be a better alternative to the status quo. Bitcoin’s simple ledger architecture and auditable supply make it a more reliable and secure asset than other cryptocurrencies. It is therefore important to recognize the distinction between Bitcoin and other cryptocurrencies, and to not conflate one with the other.