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Partner, Storm Ventures. Previously VP of product management & strategy at across applications and platform. Previously founded and led Oracle SaaS Platform, and held engineering and product management roles in SOA and Identity Management. Anshu has a B. Tech. (Honors) and M.S. in Computer Science from Indian Institute of Technology at Kharagpur and University of North Carolina at Chapel Hill respectively. Read his blog here.

3 responses to “Bitcoin is Not like Gold”

  1. Maximian

    The “network effect” is key to understanding why Bitcoin will likely remain the dominant cryptocurrency, barring some kind of technological or political catastrophe:

  2. GoodNPlenty333 (@GoodNPlenty333)

    Bitcoin isn’t just source code. It is a massive network of miners and users and merchants and developers. Anybody can copy the source code. Copying the others is only really feasible if some new alternate coin has a very impressive list of objectively superior qualities to it than bitcoin has. Furthermore, you must consider that if there is a killer feature that is objectively better, then bitcoin could be easily adapted to have that feature, thus making the new coin redundant. Lastly, lets say some new coin does come along and its superior in every way, and there isn’t really any way bitcoin can alter itself to copy its features. Then what will be the easiest way to purchase this new digital currency? With bitcoin.

  3. Anshu Sharma (@anshublog)

    Thanks for the comments.

    Yes, the popularity of Bitcoin does provide it a huge advantage. Just as the popularity of US Dollar and for that matter Gold & Silver provide them an edge.

    Look at the irony though – we are witnessing the exponential growth of Bitcoin – proving that you can go from a handful of users to millions in a few years (or months). This unprecedented high growth rate also indicates that it may be possible for other crypto-currencies to arise as fast if not faster.

    In a way Bitcoin’s rapid rise proves that its possible for new crypto-currencies to rise rapidly.

    So while I agree that Bitcoin has an edge it is not a hundred year edge.

    Only time will tell. I believe Bitcoin is a significant new currency right now. We will see if it remains the sole crypto-currency of import.