I don’t understand the rational of saying “if it’s not built on top of the Bitcoin base layer, it’s just Fiat with extra steps”. Besides fiat-pegged cryptos, all blockchains function independently from the fiat system. I don’t see how the relation between #bitcoin <> fiat or #crypto <> fiat is any different. All cryptos compete for the same fiat liquidity. The value of #btc isn’t really tied to its finite supply (as the crypto supply is theoretically infinite) but rather to its network effect, market liquidity and security level.
Discussion
I think I understand what you’re getting at but I think you may be missing the point I was trying to make.
Yes, Bitcoin is currently sold for fiat. And as such, I agree that it is “competing” for fiat liquidity with other shitcoins.
I do not value Bitcoin in fiat at all however. For instance, you could offer me $1M/coin and I still would not sell you even a fraction of my stack. For me, the value of Bitcoin is the sovereignty that it gives me, and the opportunity to exit the corrupt fiat system entirely.
Only #Bitcoin provides this. Other “cryptos” have centralized entities, or pre mines, or unlimited/undefined supplies. They are very much just Fiat with extra steps, and provide nothing of value to me over it.
Fiat is worthless to me as long as an infinite money printer exists.
I understand your position and certainly it’s shown to be the best one in terms of gaining sovereignty as #Bitcoin has been the best performing #crypto through each bull/bear cycles. Also it’s true that #btc has a unique set of conditions that haven’t been replicated by most other cryptos although some have been created under similar conditions. Certainly, pre-mines are a massive disadvantage for most other cryptos. The biggest concern I have with Bitcoin (and crypto in general) on allowing to reach sovereignty is that they are not yet a convenient medium of payment in a non-custodial way. Even if tech-savvy people can make it works, most people are unable to use properly for transacting and if not fixed, it will become an issue once the Bitcoin <> fiat on/off ramp will be cut.
Thanks for the reply and for raising a valid concern. Bitcoin is not perfect and echo chamber thinking is useless. I agree that transacting with Bitcoin is somewhat cumbersome. This is because for me in the US, it does not enjoy legal tender status.
For what it’s worth though, I think fiat is also quite (if not more) cumbersome. We have just gotten used to the ways in which it is inefficient.
As an example, say a new crypto was developed that had an unlimited supply that was wholly controlled by a bunch of unelected people, could only be transferred M-F 8a-5p, took weeks to reach final settlement, required armies of lawyers and accountants to track, etc, etc. People would laugh at it and refuse to touch it.
Now let’s say you managed to make that crypto legal tender. Sure, that would still make that crypto easier to use than #Bitcoin but I think you see why that doesn’t really make much of a difference to me considering all of its other failures.