No matter where attention in the “Crypto” space goes or how much adherents try to distance themselves from Bitcoin, no one can escape reality: Bitcoin is the elephant in the room that refuses to go away. Nowhere was this more obvious than in articles I read recently about how cryptocurrency exchanges are trying to diversify their revenue streams away from Bitcoin trading fees.
I suppose their actions shouldn’t come as a surprise to us. After all, even Bitcoin, the perennial juggernaut, is driving less revenue for them — the long “winter” has driven most speculators, and their money, out of the exchanges’ reach.
To replace that lost revenue, and to “diversify”, exchanges are trying everything they can think of, from hosting more and more obscure cryptocurrencies to launching NFT trading platforms and staking services.
It seems unlikely, based on both historical trends and current events, that any of those revenue streams will really pan out:
Generally, other cryptocurrencies see a far greater amount of speculative trading than Bitcoin, meaning that they’re trading volumes have been hit far worse during the downturn.
NFT trading has become practically non-existent compared to what that space experienced a couple years ago, with NFT holders collectively losing massive amounts of their stored wealth.
Staking services have taken a beating, so to speak, as regulators globally, especially those in the United States, opine on whether Proof-of-Stake cryptocurrencies and staking services are unregistered securities.
The list of woes for “Crypto” goes on and on.
Not that things are perfectly rosy for Bitcoin. Attention by both the media and general populace has largely shifted away from Bitcoin, and may not return in full force before the advent of the “bull run” about which many in the community are starting to make predictions.
Regardless, it’s valuable to understand what sets Bitcoin apart from its so-called “competitors” and limits its downturns in ways “Crypto” can only dream about.
Bitcoin Is For Daily Use
History has repeatedly shown that the primary purpose of much that the “Crypto” space has to offer is speculation. People speculate on which cryptocurrencies or NFT collections will soar in value, which farming platforms will yield the most returns before collapsing, which metaverses will distinguish themselves from the rest, and more. When the speculation dies down, the silence is deafening and the outlook is beyond bleak for the space overall.
Yes, Bitcoin is far from immune to the whims of speculation. But Bitcoin has what even self-proclaimed challengers like Ethereum cannot claim to have as strongly: a dedicated user base that uses it for both payments and saving, in the good times and in the bad.
This reality can be seen nearly everywhere one looks. People, companies, and even governments are choosing to store their wealth in Bitcoin and use it for their daily transactions. We can’t forget either that most of the digital assets in the “Crypto” space are priced in Bitcoin. While tough times drive away speculators and grifters, Bitcoiners’ use of Bitcoin continues to thrive.
Nothing in “Crypto” can compare to that level of ubiquitous and persistent usage, and that’s why, no matter how hard they try to deny it, the surest path to success for cryptocurrency exchanges begins and ends with Bitcoin.
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