For many just waking up to the burgeoning land of programmable decentralized value and trust, Bitcoin and cryptocurrency are synonymous. But while Bitcoin still leads in market capitalization over all cryptocurrencies, there is a noticeable secular decline in its percentage share over the years (Figure 1,2). Other token systems (aka alt coins) are being created for a variety of reasons, and people are investing in them alongside (or instead of) the venerable Bitcoin.
Bitcoin, in case you've been off grid, is all the rage. From rising public usage, to growing daily trade volumes, to rapidly increasing institutional investments, this relatively new form of currency as been billed as the game changer for just about every aspect of global monetary policy. But does this “cash killer” really live up to its billing? The thesis of this post is a resounding no.
In brief, bitcoin is a form of virtual peer-to-peer currency that is not issued or controlled by an authority, such as a central bank or massive online player game company.