Opinions are divided on Bitcoin maximalism. Some say: Bitcoin maximalism means consistently thinking through the advantages of the digital currency over the fiat money system. A global economy based solely on Bitcoin is absurd and, moreover, deflationary, say the others.
Bitcoin maximalism, however, is more than a preference for bitcoin over altcoins. Because its advocates see in the crypto currency No. 1 nothing less than a paradigm shift within the macroeconomic structure of our world economy. Central banks would be obsolete, inflation impossible and exchange rates a thing of the past. We take a close look at the phenomenon. Here are five sentences that a Bitcoin maximalist would never say.
“Bitcoin is dead”
A trait of Bitcoin maximalists is the irrefutable belief in the value of the cryptocurrency. Every crash is accepted with demonstrative serenity and reinterpreted as a necessary correction for the long-term development of the course. Because Bitcoin maximalism also means showing staying power. Only those who have walked through several valleys of tears are allowed to enjoy the long-awaited fruits of the “Hyperbitcoinization “ harvest, so the theory. Or to put it in one word: Hodl.
“I live vegetarian”
Granted, that certainly does not apply to Everyone Bitcoin maximalists. We have already reported at this point about the apparently existing connection between a whole meat diet and BTC.
At this point we let Michael Goldstein speak for us and wish you bon appétit:
The connection can be seen intuitively. Bitcoin is a revolt against fiat money and a whole meat diet is a revolt against fiat food.
“Keynes was actually a great guy”
Bitcoin maximalism is also the clash of two schools of thought in economics. Bitcoin maximalists usually belong to the so-called Austrian School of Economics. It is prominently represented by Friedrich von Hayek – a bitter opponent of the famous John Maynard Keynes. In short, the theories and implications of the two schools are incompatible. While Keynes wants to see the money economy in the hands of the state, Hayek pleads for an economically liberal system in which different forms of money in circulation compete with one another. At the Bretton Woods conference, Keynes’ idea finally prevailed.
“A little inflation is okay”
Bitcoin maximalists are not fans of central banks. If the maximalist Saifedean Ammous is to be believed, the abolition of the gold standard and the introduction of a monetary system under the control of central banks was the beginning of the end. That may sound like an exaggeration.
However, it cannot be denied that central banks have more or less a free hand in their monetary policy. They often live up to the responsibility that this entails for national economies. In some cases, however, the central bankers turn the wrong macroeconomic levers – with devastating consequences.
Therefore, many Bitcoin maximalists are calling for the central banking system to be abolished. Because, so the argument goes, even solid central banks at least ensure a steady, albeit low, inflation rate and even that is unhealthy in the long term.
With Bitcoin as the key currency, this problem is no longer applicable. Because Bitcoin has an inherently deflationary structure due to its design and this is good for a sustainable global economy without boom-and-bust cycles and inflation, my maximalists.
“Of course I also invest in Bitcoin Cash”
BCH or “BCash” is the number 1 public enemy of Bitcoin maximalists. Bitcoin-Jesus became Bitcoin-Judas, because since the infamous Hard Fork, Roger Ver has lost a lot of sympathies. Since then, the BCH dad has had to answer for many things that go wrong in the crypto cosmos. Granted, with the fork and the resulting split of the community into two camps, Ver has done the ecosystem a disservice. But the polemics that Ver is countering do not get us any further.
Ferdous Bhai summarizes in a blog post why a little currency competition among crypto assets can even be beneficial:
I want Bitcoin to win, and I will continue to build and support companies that make Bitcoin better, stronger, and more accessible. But we must never lose sight of the goal. Bitcoin isn’t the main target; it is a means of achieving our goal of a censorship-resistant, independent and denationalized currency.
So you can remain loyal to Bitcoin without denying all other tokens the right to exist. Because in the end we are all in the same boat.
Does the movement stand a chance?
Bitcoin maximalism is a fascinating profession. Because the mindset wants the big picture. Many connections seem to have been made out of thin air and seem unrealistic. Nevertheless, it is worth taking a closer look. If you have the time, immerse yourself in a debate between coin theory, technological innovation and the prospect of witnessing an economic paradigm shift. To put it in one sentence, Bitcoin maximalism is a real-time experiment in the area of tension between Keynesianism and the Austrian School of Economics. It remains exciting.
Disclaimer
This article was published in November 2018. It has now been checked and updated.