WHAT IS BITCOIN MAXIMALISTS THEORY
Bitcoin maximalism is the belief that Bitcoin the world's most popular cryptocurrency is the only digital asset that will be needed in the future. Maximalists believe that all other digital currencies are inferior to Bitcoin. The maximalist ideology holds the view that other cryptocurrencies are not in line with the ideals established by Satoshi Nakamoto even though there are people who don't agree with this theory it's worthy of note that the other Altcoins is built on the bedrock of Bitcoin and Altcoins are actually an Appendix of Bitcoin
Bitcoin maximalists believe that there is no other block chain solution that will solve the world's problems because it has the best network the most value and the best design and programming.
Maximalists typically hold the following.
Bitcoin is the most secure and decentralized network
They see Bitcoin’s proof-of-work consensus long track record, and massive network effect as unmatched by any other project.
Other cryptocurrencies are distractions
Altcoins are often viewed as experiments that either reinvent the wheel, introduce security risks, or rely on centralized control.
Innovation should happen on Bitcoin
If new features are valuable
e.g. smart contracts, privacy tools maximalists believe they should be built on Bitcoin’s base layer or via second layers like the Lightning Network, not on separate blockchains.
Bitcoin is sound money
Maximalists see Bitcoin as a digital equivalent of gold a store of value and, eventually, a global reserve currency
rather than just a speculative asset or tech experiment.
Concerns About Bitcoin Maximalism
Bitcoin maximalism has its hurdles to overcome if Bitcoin is to become the only digital currency. Many of the altcoins and the subsequent variations of blockchain networks have come into existence because of the limitations of the Bitcoin network and its cryptocurrency. Some of the challenges and limitations of Bitcoin include the followings
Cryptocurrencies like Bitcoin use a proof-of-work process to add blocks of transactions to the blockchain. Those who are responsible for assembling blocks and proposing them to the network are called miners. Miners also act as the network's auditors by verifying the legitimacy of the transactions.
As Bitcoin's popularity grows, so too does the volume of transactions. Bitcoin's blockchain network can only handle a few transactions per second—the more transactions there are, the longer the waiting times and the higher the fees.
Additionally, an enormous amount of energy is needed to process the growing volume of transactions. For example, the energy required to power the Bitcoin blockchain continuously exceeds that of small countries.5
The slowness of Bitcoin's blockchain design prevents its scalability. Taking that thought one step further, Bitcoin's scalability issue prevents it from being accepted for widespread use for financial transactions because it cannot handle the volume. As a result, other blockchain networks and their cryptocurrencies are needed, which punches a hole in the Bitcoin maximalist ideology.
The Lightning Network
The Lightning Network is a technological solution intended to solve the problem of transaction speed on the Bitcoin blockchain by introducing off-chain transactions. Using Lightning Network channels as a transaction mechanism between two parties, these parties can make or receive payments from each other. Transactions conducted on the Lightning Network are faster and more efficient than those conducted directly on the Bitcoin blockchain.
Price Volatility
Another challenge to Bitcoin becoming a widely-used payment method is that the cryptocurrency's price fluctuates too wildly—this is called volatility. This volatility makes it difficult for companies and individuals to use crypto as a medium of exchange for day-to-day business transactions.
Intermediary businesses have developed payment processing gateways that convert payments to fiat at the time transactions occur rather than when the merchant can get time to convert them. This is necessary under current conditions because the crypto's market value can change so quickly that at purchase time, a merchant might receive enough payment, but when they go to cash in their bitcoin they might receive less or more based on its market value than they charged.
This is less than ideal for small businesses, as they'll need to pay more for the additional cryptocurrency payment services in addition to traditional methods.
Smart Contracts
In the early years, Bitcoin was limited in its usage and didn't provide mechanisms for building smart contracts or decentralized applications Other blockchains are specifically designed to support these applications. A smart contract is a program that executes the actions agreed upon by the involved parties.
Smart contracts can allow transactions to be automatically conducted between two parties, such as the purchase or sale of an automobile. As a result, no centralized authority is needed since the program only executes if both parties perform the required duties.
Smart contracts, which the Ethereum blockchain network was designed around, have gained popularity within the financial sector. Although Bitcoin's blockchain network has increased its capability by offering smart contracts, it lags behind Ethereum and others in decentralized financial applications.