According to Emin Gün Sirer, founder of Avalanche, Bitcoin will eventually be overtaken by other coins as faster and cheaper networks increasingly digitize daily life.
Sirer, CEO of Ava Labs, who founded the Avalanche network and native avax token, first entered crypto in 2003 by creating a peer-to-peer digital token called hash. That was six years before the mysterious Satoshi Nakamoto launched Bitcoin.
Sirer’s work has never been a success, but his fortune in crypto has changed a lot since then. In September last year, he created the Avalanche network with the help of some experts at Cornell University in New York, where he is a computer science lecturer.
Since Bitcoin debuted on the crypto scene in early 2009, hundreds, if not thousands, of digital tokens have been created. Some are purely for speculation, others are associated with blockchains full of decentralized finance applications, while others are in our lives for online gaming, cross-border payments, and many other uses.
Besides, Bitcoin is still the most traded cryptocurrency and has a market capitalization of approximately $1 trillion. But it won’t stay at the top for long, according to Sirer.
“If you ask what will happen to Bitcoin, it will continue to grow, but its growth rate will be eclipsed by these systems with a broader vision,” he said in a recent interview. Could Bitcoin be obsolete? He replied “Absolutely” to the question.
Sirer thinks that coins like avax, ethereum, solana or cardano, which are connected to networks with multiple use cases thanks to decentralized peer-to-peer fintech, will take the position of Bitcoin. Moreover, he adds that Bitcoin will become obsolete sooner than it should be.
Satoshi Nakamoto has only made 21 million Bitcoins and no more can be created. Nakamoto said in his whitepaper of the coin that the limited quality of Bitcoin makes the existence a great store of value, but according to Sirer, this is not enough.
“There is a bigger game out there, and there are systems like avax that play a bigger game towards digitizing the world’s assets, and money is just a source of value,” Sirer said. There are many other valuable things,” he said.
Sirer said that the Bitcoin blockchain is not home to smart contracts, which can make it difficult to build on, for example. Smart contracts are an important part of decentralized finance as they allow two parties to automatically transfer funds or assets without any intermediaries. Blockchains like ethereum, solana, cardano, and avax itself can run them. Digital assets, such as immutable tokens, also operate in these more complex networks.
Bitcoin gained 440% in a year, but lags behind eth, which rose 986%, while avax’s performance is close, with a 414% increase.
And the Bitcoin network is much slower than some newly created networks. Bitcoin mining or money transfer can take much longer and require much more computing power.
Finally, Sirer said, “Ledger’s protection method consumes an incredible amount of energy, which means that value is leaking from the system.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.