The Problems With Other Cryptocurrencies
While other cryptocurrencies may appear similar to Bitcoin on the surface, they fundamentally compromise on the core principles that make Bitcoin revolutionary: true decentralization, immutability, and security.
The Proof of Stake Fallacy
Proof of Stake represents a fundamental misunderstanding of what makes Bitcoin secure. It creates a circular system where those who have the most tokens control the network, essentially recreating the same power dynamics of the traditional financial system.
• No real-world cost to attack the network
• Vulnerable to regulatory capture
• Prone to centralization over time
• Cannot achieve true decentralization
The Pre-mine Problem
Almost every cryptocurrency except Bitcoin began with a pre-mine, where the creators allocated tokens to themselves before public distribution. This creates an inherent conflict of interest and power imbalance that can never be overcome.
• Incentivizes pump and dump schemes
• Creates permanent aristocracy
• Compromises decentralization
• Makes fair distribution impossible
The Ethereum Example
Ethereum demonstrates the fundamental problems with centralized control in cryptocurrencies. Despite claims of decentralization, its history shows the reality of foundation control:
• Foundation controls protocol development
• Pre-mine created lasting power imbalance
• Frequent protocol changes show instability
• Proof of Stake transition reveals centralization
The Security Theatre
Alternative cryptocurrencies often sacrifice real security for perceived convenience or "efficiency." This creates fundamental vulnerabilities that cannot be fixed without completely rebuilding from scratch.
• Vulnerable to collusion
• Dependent on trusted third parties
• Subject to governance capture
• Lack true censorship resistance
The Track Record
History has repeatedly demonstrated the fragility of alternative blockchain systems:
• Ethereum Classic's 51% attacks
• BSC's centralized validator failures
• Polygon's frequent bridge hacks
• Countless chain halts and rollbacks
The Foundation Problem
The existence of a foundation or core development team with special privileges creates an insurmountable centralization risk that undermines the entire purpose of blockchain technology.
• Vulnerable to regulatory pressure
• Can force protocol changes
• Controls development funding
• Creates platform risk
The Fundamental Reality
Other cryptocurrencies fundamentally represent a step backward - they recreate the same centralized control structures that Bitcoin was designed to replace, just with new controllers and new terminology.
Their failures demonstrate why Bitcoin's design choices, from Proof of Work to its leaderless evolution, are essential features rather than outdated flaws. They are not "cryptocurrencies 2.0" but rather crypto-flavored recreations of the old financial system.